[Alpha Biz=(Chicago) Reporter Kim Jisun] ALTEOGEN announced on the 22nd that it has signed a license change contract worth 26.7 billion won with MSD of the United States. This is the first time ALTEOGEN has identified the contracting party as MSD.
In 2020, ALTEOGEN exported rH-Hyaluronidase ALT-B4 to MSD, which converts conventional intravenous biomedicine into subcutaneous injection formulation. Up to $ 644 million (860 billion won) per item will be paid to a maximum of six targets. At that time, the other party of the contract only said it was one of the top 10 global pharmaceutical companies, but did not disclose MSD.
Additional contracts are about granting exclusive license to a particular product line. MSD has exclusive license license only for 'Keytruda' products. According to the contract change, ALTEOGEN will receive $ 20 million (26.7 billion won) in down payment from MSD, which is 92.7% of last year's consolidated sales. Milestone (step-by-step technical fees) based on product licensing, patent extension and cumulative net sales of Keytruda products will also increase by $ 432 million (570 billion won) compared to the original contract. After the product is released, a certain portion of net sales is paid as royalties.
Keytruda is an immuno-cancer drug developed by MSD. It is a blockbuster medicine that generated global sales of $ 25 billion (about 33 trillion won) last year alone. It has become the world's No. 1 drug in sales, beating the autoimmune disease treatment Humira ($ 14 billion).
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
