Novartis has signed a landmark agreement with South Korean biopharmaceutical firm Alteogen, potentially valued at up to $3.22 billion, for the development and commercialisation of subcutaneous drug formulations powered by Alteogen’s proprietary ALT-B4 technology.
A Multi-Option Agreement Targeting Subcutaneous Formulation
The deal grants Novartis the ability to exercise multiple options for exclusive global rights to develop subcutaneous versions of several of its existing products using berahyaluronidase alfa — the enzyme commercially known as ALT-B4. This subcutaneous drug deal represents one of the more substantial licensing arrangements seen in the biologics delivery space in recent years.
ALT-B4 is a proprietary recombinant human hyaluronidase developed through Alteogen’s Hybrozyme platform. The enzyme works by temporarily breaking down hyaluronan within the extracellular matrix, enabling faster and more efficient absorption of co-administered therapies when delivered subcutaneously — effectively converting biologic drugs from intravenous to subcutaneous administration.
Financial Structure and Milestone Framework
Under the terms outlined by Alteogen, the agreement includes option exercise fees, development and commercial milestone payments, and royalties on net sales of any products that are successfully commercialised using the ALT-B4 technology. The total potential value of $3.22 billion is contingent on all options being exercised and all milestones being achieved.
What Alteogen’s Leadership Said
Alteogen CEO Tae-Yon Chun commented on the significance of the agreement: “Novartis is a world-leading pharmaceutical company at the forefront of the global healthcare industry and has evaluated the application of ALT-B4 across multiple modalities for subcutaneous formulation development. This agreement demonstrates the technological strength and commercial value of Alteogen’s Hybrozyme platform.”
Alteogen’s Growing Licensing Momentum
This agreement marks the fourth licensing deal signed by Alteogen in 2024 related to its Hybrozyme platform, underscoring the growing industry interest in transitioning intravenous drug therapies to subcutaneous formats. Alteogen’s broader pipeline includes the development of new biologics such as antibody-drug conjugates and biosimilars, alongside its proprietary enzyme technologies.
The Hybrozyme platform continues to attract major pharmaceutical partners, and this latest subcutaneous drug deal with Novartis further validates the platform’s commercial and scientific applicability across multiple drug modalities.
Separately, Novartis has also been active in advancing next-generation drug discovery methods. In July, the company entered a collaboration with Chai Discovery to integrate artificial intelligence into the identification of therapeutic antibodies, reflecting the company’s continued investment across multiple innovation fronts in the pharmaceutical sector.
