Alteogen posts second-quarter profit as commercial sales take hold

Alteogen said its second-quarter net income reached 30 billion won ($21.1 million), after a 34.3 billion won loss a year earlier, as commercial sales of partner products began to generate a new revenue base.

Alteogen, which licenses a hyaluronidase-based platform used to convert intravenous drug formulations into subcutaneous formulations, said its first-half results reflected upfront and milestone revenue from ALT-B4 licensing agreements signed in the first quarter with GSK subsidiary Tesaro and Biogen.

Operating profit reached 34.2 billion won ($24.1 million), compared with a 426 million won loss (-$300,254) in the year-earlier quarter. Revenue rose 269.5 percent to 68.9 billion won ($48.6 million) from 18.6 billion won ($13.1 million).

MSD's ALT-B4-based subcutaneous Keytruda kit, known in the United States as Keytruda Qlex, recorded second-quarter sales of $463 million, up about 262 percent from the previous quarter. "Since April, the application of a J-code and convenient administration have rapidly expanded adoption by medical institutions and conversion to subcutaneous formulations," MSD said.

In its biosimilar business, Alteogen said its Eylea biosimilar, EyezenP injection, received product approvals in South Korea and Saudi Arabia during the second quarter. Royalty inflows from its Herceptin biosimilar, Angokta, which is sold in China, were also expanding.

"In addition to the three technology licensing deals already made this year, we intend to turn ongoing licensing discussions into additional results," Jeon Tae-yeon said. The company also plans to expand the applications of its Hybrozyme platform.