AstraZeneca partners with Alteogen for $1.3B subcutaneous cancer drugs deal

AstraZeneca is making a strategic investment of approximately $1.35 billion in South Korean biotechnology company Alteogen to advance the development of under-the-skin versions of several oncology treatments. The British pharmaceutical giant has secured a licensing agreement for ALT-B4, a compound that utilizes a specific enzyme to efficiently create subcutaneous forms of various drugs. This move follows a similar licensing deal Alteogen struck with Daiichi Sankyo in November 2024, aiming to develop subcutaneous versions of the breast cancer medication Enhertu, which is co-developed with AstraZeneca.

Under the terms of the agreement, Alteogen will receive an initial payment of $45 million, with the potential for more than $1.3 billion in milestone payments. These terms were translated from Korean financial documents using Google Translate, and AstraZeneca has yet to provide a comment on the matter.

AstraZeneca's Chief Medical Officer and oncology development leader, Cristian Massacesi, expressed enthusiasm about the collaboration in a statement released on Monday. He emphasized the potential of this partnership to introduce new subcutaneous options for patients, potentially transforming cancer treatment delivery.

This collaboration places AstraZeneca amid an ongoing patent dispute surrounding ALT-B4. Halozyme, a competitor, has filed a lawsuit against Merck, claiming that Merck's subcutaneous version of the drug Keytruda violates Halozyme's subQ patent. Merck is employing ALT-B4 in the production of its injectable treatment. Halozyme's executives have indicated their desire to negotiate a licensing agreement with Merck and hope to bring the matter to a resolution. However, if such an agreement cannot be reached, Halozyme may seek an injunction to prevent the sale of the subcutaneous Keytruda.

Patent rights were a significant consideration during AstraZeneca's deal negotiations with Alteogen, according to Alteogen's CEO, Park Soon-jae. He noted that the agreement was finalized after thorough assessments of both substance stability and patent rights. This diligence underscores the importance of intellectual property considerations in the pharmaceutical industry, especially as companies strive to innovate and improve treatment delivery options for patients.

This partnership signifies AstraZeneca's commitment to enhancing its oncology portfolio and exploring new avenues for drug administration. By focusing on the development of subcutaneous versions of established treatments, AstraZeneca aims to provide more convenient and potentially more effective treatment options for cancer patients worldwide. This strategic move not only strengthens AstraZeneca's position in the competitive oncology market but also highlights the growing importance of collaborations between large pharmaceutical companies and biotech firms to drive innovation in drug development.

Overall, AstraZeneca's investment in Alteogen represents a significant step forward in the pursuit of improved cancer therapy delivery methods. By leveraging Alteogen's ALT-B4 technology, AstraZeneca aims to expand its portfolio and make impactful advancements in cancer care, offering hope for enhanced patient outcomes and fostering innovation in the pharmaceutical industry.