Novartis has signed an agreement with Alteogen that could be worth up to $3.22bn for the development and commercialisation of subcutaneous drug formulations using Alteogen’s ALT-B4 technology.

The deal allows Novartis to exercise multiple options for exclusive global rights to develop subcutaneous versions of several of its products employing the berahyaluronidase alfa enzyme, also known as ALT-B4.

ALT-B4 is a proprietary recombinant human hyaluronidase developed via the Hybrozyme platform, designed to convert biologic drugs from intravenous to subcutaneous administration.

The enzyme works by temporarily breaking down hyaluronan in the extracellular matrix, enabling faster and more efficient absorption of co-administered therapies when administered subcutaneously.

Under the terms outlined by Alteogen, the agreement includes option exercise fees, development and commercial milestone payments, and royalties on net sales of any products commercialised with the ALT-B4 technology.

Alteogen indicated that the total potential value of the agreement, should all options be exercised and milestones met, would reach up to $3.22bn.

Alteogen CEO Tae-Yon Chun said: “Novartis is a world-leading pharmaceutical company at the forefront of the global healthcare industry and has evaluated the application of ALT-B4 across multiple modalities for subcutaneous formulation development.

“This agreement demonstrates the technological strength and commercial value of Alteogen's Hybrozyme platform.”

The licence represents the fourth such agreement signed by Alteogen in 2024 related to its Hybrozyme platform, which supports the transition of intravenous drugs to subcutaneous formats.

Alteogen focuses on the development of new biologics, including antibody-drug conjugates and biosimilars, as well as proprietary enzymes developed using its platform technologies.

In July, Novartis entered a collaboration with Chai Discovery to advance the use of AI in the identification of therapeutic antibodies.