Alteogen, a Korean biotech company that has executed large-scale technology transfer deals with global pharmaceutical companies, has signaled another “big deal.” On 15 January (local time), Jeon Tae-yeon, the newly appointed CEO of Alteogen, who presented in the Asia-Pacific (APEC) track at the JP Morgan Healthcare Conference (JHMHC), the world’s largest pharmaceutical and biotech investment event held in San Francisco, stated, “We are trying to finalize the deal and make an announcement, if possible, by next week.”

Alteogen is a leading bio platform development company. Its platform technology “Hybrozyme (ALT-B4)” uses an enzyme that degrades hyaluronic acid, a key component of the human skin barrier, to convert intravenous (IV) injections into subcutaneous (SC) injections. In the case of anticancer drugs using proteins such as antibodies, the large molecular size makes it difficult for them to penetrate the skin barrier. As a result, most of these drugs are developed in IV form, which generally requires about an hour of administration. By using Hybrozyme technology, anticancer drugs can also be administered within one minute, significantly reducing inconvenience for patients.

For this reason, in 2024, Merck (MSD) in the United States signed a KRW 601.5 billion contract with Alteogen to introduce the technology. Merck applied this technology to its blockbuster immune-oncology drug “Keytruda,” which is nearing patent expiry, and launched the subcutaneous formulation “Keytruda Qurex” in the United States. Subsequently, Alteogen signed additional technology export contracts with Daiichi Sankyo (KRW 420 billion) and AstraZeneca for two deals (KRW 872.9 billion and KRW 1.0911 trillion).

Jeon stated that the contract to be signed soon is similar in scale to these prior deals. Given that the previous contracts were each worth several hundred KRW billion, observers consider it highly likely that the new agreement will also be with a global pharmaceutical company. He added that, as JPMHC brings together some 1,000 global companies in one venue, the company also held meetings with various prospective partners. “We had several meetings, including fine-tuning with the company with which we are about to sign a contract and discussing progress with companies we have been meeting,” he explained.

In his presentation that day, Jeon said, “This point in time, when Alteogen’s technological achievements are beginning in earnest to translate into financial performance, is a very important inflection point for the company.” He also set out goals to strengthen financial stability over the medium to long term, develop new platforms to follow Hybrozyme, and stabilize the global supply chain.

Regarding some criticism that Alteogen may be relying solely on the success of Hybrozyme, Jeon stated, “It is extremely difficult not only to succeed in developing a new drug but also to achieve strong sales,” adding, “The charm of platform technology is that it can be applied in many different areas. What we need to focus on is structuring each contract in a way that is favorable to the company.”

On the lawsuit with U.S. company Halozyme, which has a similar platform technology to Alteogen, he expressed confidence that there was no issue. Halozyme has filed a suit claiming that MSD’s Keytruda Qurex infringes its patents. Jeon noted that “even in the meetings held today, our clients do not pay much attention to this,” indicating that the commercialization of MSD’s Keytruda Qurex has served as a strong reference.

The company expects that from this year, as products incorporating Hybrozyme enter full-scale commercialization and royalties tied to sales begin to flow in, its revenue will improve significantly. Jeon said, “We are preparing a hybrid business strategy that will enhance stability and sustainability through both revenue from our own products and the continued technology out-licensing of the Hybrozyme platform.”

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