Cash-enriched Korean biotech companies speed up clinical trials

Alteogen Inc. headquarters [Courtesy of Alteogen]

South Korean biotechnology companies are picking up the pace in clinical trials, thanks to growing cash reserves from technology transfers and milestone payments despite a sluggish investment environment brought on by a slowing global economy.

Alteogen Inc. has won a string of milestones and multi-billion-dollar contracts this year, according to sources on Wednesday. The company recently claimed a $13 million milestone from a U.S. pharmaceutical company as the partner recently entered a Phase 3 clinical trial for an investigative drug in a subcutaneous formulation based on Alteogen’s Hybrozyme technology for novel human hyaluronidase (ALT-B4). Alteogen also obtained a 40 billion won ($30.5 million) service contract from another partner. The contact includes the clinical supply of ALT-B4 and the transfer of production technology.

Alteogen’s cash and cash equivalents totaled 45.8 billion won at the end of last year, which is more than fourfold from the previous year’s 10.5 billion won. Alteogen signed a 183.9 billion won license deal with Sandoz, a subsidiary of Novartis, at the end of last year.

ABL Bio Co. is also among the Korean biotech companies that have been enriched with cash through consecutive license deals. Earlier this year, the company received an additional milestone payment worth $25 million from Sanofi after a phase 1 clinical trial of ABL301, a Parkinson’s disease drug licensed out to Sanofi. The company’s cash and cash equivalents reached 25.1 billion won last year, up 16.2 percent from the previous year.

TiumBio Co. received a milestone payment of $1.5 million from China’s Hansoh Pharma earlier this year. The company’s cash and cash equivalents increased nearly threefold to 18.1 billion won last year compared to the previous year.

Alteogen is currently conducting large-scale clinical trials this year using the proceeds from upfront and milestone payments. The global phase 3 clinical trial of ALT-L9, a biosimilar of Eyelea, is a top priority for the company. Patient recruitment was completed in February.

ABL Bio plans to start a phase 1 clinical trial for its dual-antibody cancer drugs, ABL503 and ABL103, in Korea this year. A phase 1 trial is underway in the U.S.

TiumBio is conducting clinical trials for three pipelines. Its immune oncology drug TU2218 is currently undergoing a phase 1 monotherapy trial in Korea and the U.S. On April 4, the company received approval for a phase 1 trial of leukemia drug TU7710 in Korea. Its endometriosis treatment TU2670 is in a phase 2 trial in Europe.