Novartis has signed an option and licensing agreement with South Korean biotech Alteogen worth up to $3.2 billion to develop and commercialize subcutaneous drug formulations using Alteogen's ALT-B4 platform, according to the announcement.
The deal grants Novartis exclusive global rights to use Alteogen's proprietary Hybrozyme technology, which modifies injectable drugs to reduce injection volume and frequency. Under the structure, Novartis makes upfront and milestone payments totaling $3.223 billion as it advances candidate drugs through development and toward market approval. Alteogen retains the right to earn tiered royalties on net sales of commercialized products.
Subcutaneous delivery, injecting drugs just beneath the skin rather than into muscle or vein, has become a priority for pharmaceutical developers seeking to improve patient adherence and quality of life. Novartis, the world's largest pharmaceutical company by revenue, already markets several high-volume subcutaneous therapies and has invested in delivery technology partnerships to maintain competitive positioning as competitors bring similar formulations to market.
Alteogen, founded in 2011, is a Seoul-based biopharmaceutical company that specializes in protein therapeutics and drug delivery systems. The firm has previously secured partnerships with global drugmakers including Roche and AstraZeneca on separate subcutaneous and inhalation programs. Alteogen trades on the Korean stock exchange and has a market capitalization around $1.6 billion as of the deal announcement date.
The Hybrozyme platform works by enzymatically breaking down hyaluronic acid in subcutaneous tissue, reducing the volume of fluid needed to dilute injected drugs and thus enabling smaller, less frequent shots. Novartis said it would apply the technology to multiple undisclosed development candidates across its pipeline, with potential to address large-market indications in oncology, cardiology, and immunology.
Novel delivery platforms have driven valuations in biotech licensing over the past three years. Amgen paid Catalent $1.6 billion in 2023 for prefilled syringe and autoinjector capabilities. Eli Lilly acquired Retrogenix for undisclosed terms in 2024 to gain antibody engineering assets. The Novartis-Alteogen transaction at $3.223 billion places it among the sector's larger technology-focused licensing deals, though below megadeals tied to commercial-stage assets or late-stage candidates.
Novartis and Alteogen closed the agreement in September 2026. Novartis said clinical development under the license would begin in 2027. The $3.223 billion total includes payments contingent on achievement of regulatory and commercial milestones, with the structure weighted toward later-stage valuations typical of licensing agreements where the licensee bears development risk.
