Alteogen signs 2 licenses out agreements with AZ subsidiary

KRW 65.5 billion upfront payment

Signes an exclusive licensing agreement for ALT-B4 with AZ subsidiary MedImmune’s UK and US entities

Upfront payments of KRW 36.4 billion and KRW 29.1 billion... total at KRW 1.8985 trillion

Alteogen has signed two licensing-out agreements with AstraZeneca’s subsidiaries.

 

According to the Financial Supervisory Service on the 17th, Alteogen has signed 2 exclusive license agreements with MedImmune, a subsidiary of AstraZeneca's bio R&D, for its subcutaneous (SC) formulation modification platform 'ALT-B4' based on recombinant human hyaluronidase enzyme.

 

The company signed agreements with the UK subsidiary of MedImmune and the US subsidiary of MedImmune, respectively.

 

The non-refundable upfront payment with the UK entity was KRW 36.4 billion.

 

The technology fee (milestone payments) for development and commercialization is KRW 1.547 trillion, with separate sales royalties upon successful commercialization.

 

Alteogen will receive sales royalties equivalent to a certain percentage of the net sales generated after the first commercial sale of products using ALT-B4.

 

The upfront payment for the contract signed with the US corporation is KRW 29.1 billion.

 

The milestone payment is 843.8 billion won, with separate sales royalties.

 

The total upfront payment for the two technology export contracts signed by Alteogen is KRW 65.5 billion.

 

The total milestone payment for the 2 contracts is KRW 1.8985 trillion.

 

Alteogen's ALT-B4 technology can change an intravenous (IV) formulation to a subcutaneous (SC) formulation by hydrolyzing hyaluronic acid under the skin.

 

Unlike the IV formulation that patients have to receive for 4-5 hours in the hospital, the SC formulation allows patients to self-inject the treatments at home in 5 minutes.

 

Since 2019, Alteogen has signed a series of technology transfer agreements with global pharmaceutical companies including Merck (MSD) in the United States, Intas Pharmaceuticals in India, and Sandoz in Switzerland.

 

Alteogen has licensed out its ALT-B4 technology to the global pharmaceutical company GPC for USD 1.373 billion in 2019, MSD for USD 3.865 billion in 2020, Intas for USD 109 million in 2021, and Sandoz for USD 145 million in 2022.

 

Among these, the contract with MSD was extended by 4 months in February last year, increasing the contract amount by USD 432 million to USD 4.317 billion.

 

The contract with Sandoz, signed in 2022, was replaced by a contract to develop an SC formulation biosimilar through the joint development of a new hyaluronidase in July.

 

The specific terms and conditions of the contract and development strategy were not disclosed.