[Click eStock] "Alteogen Signs Exclusive Contract with Merck... Target Price Raised to 300,000 Won+"

Hyundai Motor Securities forecasted on the 23rd that Alteogen could generate an annual cash flow exceeding 1 trillion KRW through an exclusive contract for the immuno-oncology drug ‘Keytruda SC’ with the global pharmaceutical company (Big Pharma) MSD (Merck) of the United States.

Alteogen announced the day before that it had signed a license amendment contract worth up to 575 billion KRW with Merck. Previously, the contract was non-exclusive, but with the change to an exclusive contract this time, Alteogen will receive additional upfront payments and milestones (additional payments based on development stages). It is also expected to receive royalties based on Merck’s sales growth.

Alteogen possesses technology for a substance that enables large-volume antibody drugs to be administered via subcutaneous injection (SC) instead of intravenous injection (IV). Only two bio companies worldwide have this technology: Alteogen and Halozyme in the United States. Through this exclusive contract, Merck gains exclusive rights to develop and commercialize the Keytruda subcutaneous injection formulation product using Alteogen’s technology.

Analyst Eom Min-yong of Hyundai Motor Securities stated, "The cash promised by Merck alone amounts to 1.4 trillion KRW," and analyzed, "When combining additional upfront payments, milestones, royalties based on sales, and contracts with Swiss Sandoz, the annual cash flow will exceed 1 trillion KRW."

He added, "No company in Korea has ever influenced Big Pharma sales like Merck," recommending Alteogen as the leading stock in the bio industry and raising the target stock price to 300,000 KRW, more than three times the current price.

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