Alteogen and Sandoz collaborate to develop new hyaluronidase

Alteogen has entered into a new hyaluronidase co-development and license agreement with global pharmaceutical giant Sandoz AG.

Alteogen said Tuesday that it has decided to terminate its license agreement with Sandoz for the source technology for human hyaluronidase ALT-B4 signed on Dec. 29, 2022, and to return the rights to the technology to Sandoz.

The termination was agreed upon as part of the two companies' strategy to co-develop a new hyaluronidase. The signing of a new agreement followed the termination of the existing ALT-B4 license agreement.

The new agreement is for developing a hyaluronidase different from ALT-B4. It is contingent upon the completion of drug regulatory approvals, and revenue recognition is subject to the success of clinical trials and product approval. The new agreement’s term is from July 29, 2024, through the end of the royalty period.

The total upfront payment includes tiered milestone payments, but the two companies agreed not to disclose the specific terms of the agreement and development strategy. Alteogen will receive a percentage of net sales after the first commercial sale following approval in each country of the agreement. The company expects to receive the first milestone payment within January 2025.

In May of last year, Alteogen received a milestone payment of $3 million under the ALT-B4 license agreement. The company is not obligated to return any payments (milestones and royalties) it already received.

Alteogen said the agreement will enable the development of multiple subcutaneous biosimilars of Sandoz. The company explained that the accord is a strategy to strengthen its hyaluronidase pipeline and expand the number of applicable biosimilar products.

“This agreement strengthens our partnership with Sandoz and increases our importance in the subcutaneous biosimilars space,” an Alteogen official said. “It will help us grow to become the most specialized hyaluronidase company worldwide.”

Alteogen has multiple biobetter platforms, including its Hybrozyme platform, which enables the conversion of intravenous (IV) therapies into subcutaneous (SC) formulations. The company has signed licensing agreements with MSD, Intas Pharmaceuticals, and global big pharma for ALT-B4.

Upon the news of the new agreement, Alteogen's stock price broke through the 300,000 won ($216) mark for the first time. As of noon, Alteogen shares were trading at 308,000 won, up 3.18 percent or 9,500 won from the previous day's close.