Shinhan Securities expects Altogen’s technology-transfer agreement with Novartis to cover two subcutaneous (SC) formulation conversion candidates instead of three after Del-desiran failed its primary endpoint in Phase 3 trials. The brokerage kept its BUY, Buy investment opinion but lowered Altogen’s target price from 540,000 Korean won to 520,000 Korean won. Novartis obtained three AOC (Antibody Oligonucleotide Conjugate) candidates—Del-zota, Del-desiran and Del-brax—through its approximately 16.4 trillion Korean won acquisition of Avidity in October 2025. Del-desiran, a treatment for DM1 (Type 1 Myotonic Dystrophy), was previously considered suitable for SC conversion because it is administered by intravenous injection every eight weeks for 54 weeks, but its development path is now uncertain after the trial failure. Shinhan Securities said the failure is not expected to trigger a return of the contract payment or changes to the existing technology-transfer terms. Del-zota remains aimed at U.S. Food and Drug Administration approval in the first half of 2027, while Del-brax’s SC-conversion value remains intact alongside its development target of up to $4 billion in sales.