Alteogen clinches $265m licensing deal with GSK subsidiary

Alteogen headquarters in Daejeon (Alteogen)

Alteogen has signed a licensing agreement with Tesaro, a subsidiary of global pharmaceutical powerhouse GSK, for the worldwide rights to use the former’s hyaluronidase ALT-B4, in a deal that could be worth up to $265 million, the Korean biotechnology company said Tuesday.

Under the agreement, Tesaro will use ALT-B4 for the development and commercialization of a subcutaneous formulation of dostarlimab, a programmed death receptor-1 blocking antibody.

According to Alteogen, it will receive an upfront payment of $20 million with milestone payments depending on specific stages of development as well as regulatory and sales marks. The Korean biotechnology firm will also be entitled to receive royalties on sales of Tesaro’s commercialized product.

“We are excited to expand our Hybrozyme technology by collaborating with Tesaro in the oncology field and look forward to developing and bringing this potential subcutaneous medicine to market,” said Alteogen CEO Chun Tae-yon Chun.

The announcement came after Chun had hinted at a major deal nearing completion last week when he presented on behalf of his company during the 44th JPMorgan Healthcare Conference in San Francisco.

ALT-B4, designed to enable large-volume subcutaneous delivery of drugs that are traditionally administered via intravenous infusion, has propelled Alteogen to the top of Korea’s tech-heavy Kosdaq index, as it has scored a series of substantial contracts with major players in the pharmaceutical industry, including AstraZeneca and MSD.

Although the stock price of Alteogen ended at 476,500 won ($322) per share at Tuesday’s market closing, down 3.93 percent from the previous day, it remained the company with the largest market capitalization on the Kosdaq at 25.7 trillion won.