[Click eStock] "Alteogen Achieves Fourth Technology Out-Licensing This Year... Target Price Raised"

On September 3, Shinhan Investment & Securities raised its target price for Alteogen from 4.8 million won to 5.4 million won, following the company's fourth technology out-licensing (L/O) deal this year, which brought the cumulative contract value to 16 trillion won. The firm maintained its 'Buy' investment rating.

Eom Min-yong, a research analyst at Shinhan Investment & Securities, stated, "We are raising the target price by 12.5% compared to the previous level and maintaining it as our top pick in the sector." He added, "After leading the global industry with the development of the world's first subcutaneous (SC) antibody-drug conjugate (ADC), Alteogen has also pioneered the SC gene therapy for antibody-oligonucleotide conjugates (AOC). By September, the company has achieved a record four technology out-licensing deals in a single year, reaching an accumulated contract volume of 16 trillion won. We expect further momentum for the remainder of the year, including ongoing technology exports."

The previous day, Alteogen announced it had signed a subcutaneous (SC) formulation technology deal with global pharmaceutical company Novartis, with a maximum potential value of 4.4 trillion won. Eom noted, "While the upfront payment for this deal remains undisclosed, in the technology licensing deal with Biogen in March, the upfront payment was 30 billion won per program, with an additional 15 billion won per added molecule." He explained that the agreement with Novartis could cover up to ten molecules, and the anticipated per-program amount is expected to exceed the Biogen deal. "If development moves forward on ten programs, the additional upfront payments could total over 200 billion won," he analyzed.

The analyst emphasized the importance of focusing on value change rather than short-term trading. Eom commented, "The significance of this deal lies in the fact that, for the first time globally, Novartis has partnered with Alteogen to convert an AOC-type IV gene therapy into a subcutaneous delivery format." He added, "This will drive home the necessity of SC conversion for other global gene therapy companies. Thus, short-term trading approaches are not appropriate, and the focus should be on the underlying value change," he advised.

This content was produced with the assistance of AI translation services.