Alteogen (196170) announced on the 2nd that it has signed an exclusive option and license agreement with Novartis Pharma AG for its recombinant human hyaluronidase product 'ALT-B4'.

The contracting party is Novartis Pharma AG, based in Switzerland. The agreement grants Novartis an exclusive option and license for the development and commercialization of subcutaneous formulations of multiple Novartis biopharmaceuticals using ALT-B4, Alteogen's recombinant human hyaluronidase based on its HyBrozyme platform.

■ Up to 322.3 Million Dollars, with Sales Royalties Separate

If Novartis exercises all of the options granted, the total contract value Alteogen could receive is up to 322.3 million dollars (approximately 4.4165 trillion won). The amount includes milestones related to the development and commercialization of multiple products incorporating ALT-B4, with sales royalties to be paid separately.

The contract value consists of an upfront payment upon signing, option exercise fees, and milestones, while detailed contract terms were not disclosed due to confidentiality obligations. The upfront payment is expected to be received within 30 days of the contract date.

Sales royalties will be paid as a certain percentage of net sales generated after the first commercial sale of products incorporating ALT-B4. Alteogen has no obligation to return the upfront payment, option exercise fees, milestones, or sales royalties received under the agreement. The contract period runs until the expiration of the royalty period.

The won conversion of the contract amount was calculated at the exchange rate of 1,370.30 won per dollar, as announced on September 2, 2026. Detailed contract terms, including the products under development, milestones, and royalties, have been withheld from disclosure until January 3, 2053, due to contractual confidentiality.

■ Conditional Contract Effective Upon Regulatory Approval, with Risks of Termination or Reduction

This agreement is conditional, taking effect only upon approval by pharmaceutical regulatory authorities. Alteogen stated that revenue recognition may vary depending on the success of clinical trials and product approvals, and that the contract could be terminated if research and development is halted by regulators or product approval fails.

The company also disclosed that the total contract value could be reduced in the event of clinical failure or low sales figures, and that the contract could be terminated early due to the counterparty's convenience, material breach, or insolvency.