Alteogen, a South Korean biopharmaceutical company, has become the hottest stock on Korea’s KOSDAQ market, with its market capitalization soaring to the top spot after a series of successful global licensing deals for its subcutaneous (SC) drug formulation platform.
Back in 2019, Korea Investment & Securities predicted Alteogen’s potential in a report published on Dec. 2. The report highlighted that the clinical trials were conducted on an already-commercialized product, with only the formulation being modified, which significantly increased the likelihood of success.
It stated, “Developing subcutaneous (SC) formulations is a global trend, and demand from big pharmaceutical companies is strong. With the success of licensing out this technology, Alteogen’s platform has gained validation, increasing the potential for further partnerships with other companies.”
At that time, Alteogen had just announced the licensing of its human hyaluronidase (ALT-B4) platform—a technology enabling the conversion of intravenous (IV) drugs to subcutaneous (SC) formulations—to a top 10 global pharmaceutical company. While the news generated buzz, skepticism lingered in the market, given the biotech industry’s history of licensing agreements being terminated. Therefore Alteogen’s future as a dominant player on KOSDAQ was far from assured.
However, over the past five years, the company has proven its doubters wrong. Alteogen has secured multiple licensing deals and now holds the position as the largest company on KOSDAQ by market capitalization. Among investors, owning Alteogen shares is often considered a hallmark of successful KOSDAQ investing. Those who recognized the potential of its technology early—much like Korea Investment & Securities—are likely celebrating their foresight.
A recently retired capital markets executive shared, “Last year, my colleagues mentioned Alteogen was a strong and reliable biotech stock. So, right after I retired, I bought some shares. Now I’m trying to learn more about biotech to find the next Alteogen.” Like this executive, many Korean investors are diving into biotech, believing it holds the key to market success. This trend has supported the relatively stable performance of biotech stocks in recent months.
As of Nov. 14, Alteogen’s stock closed at 441,500 won, according to the Korea Exchange (KRX). This marks a staggering 4.5-fold increase from its closing price of 98,500 won at the end of last year (December 28).
Founded in 2008 as a first-generation biotech venture, Alteogen has had a remarkable year, clinching a series of licensing agreements with global pharmaceutical giants. In February, the company licensed its SC platform for Merck’s blockbuster immunotherapy drug Keytruda. More recently, it struck a $300 million deal with Japan’s Daiichi Sankyo for the same platform. These achievements have been pivotal in driving Alteogen’s meteoric rise this year.
