South Korean company Alteogen Inc. signed a nonexclusive global license agreement with a top 10 global pharmaceutical company for its recombinant human hyaluronidase enzyme, ALT-B4, in exchange for an up-front payment of $13 million. It is also eligible to receive additional payments of up to $1.37 billion tied to the achievement of development, regulatory approval and sales milestones.
While the undisclosed big pharma will secure the global rights to develop and commercialize multiple products in combination with the Hybrozyme technology, Alteogen will be responsible for the clinical and commercial supply of ALT-B4 materials.
ALT-B4 is developed using the company’s Hybrozyme technology, a hyaluronidase-derived technology that enables large volume subcutaneous (SC) administration of drugs that are typically administered as I.V. injections by temporarily hydrolyzing hyaluronan in the extracellular matrix.
Hyaluronidase enzyme Licensing model
- One of the global key players in developing hyaluronidase enzyme is Halozyme Therapeutics Inc., a U.S. biotech based in San Diego. In 2006, Halozyme and Roche Holdings AG entered a licensing agreement for the Enhanze technology. Under the agreement, Halozyme granted Roche exclusive, global rights for the application of Halozyme’s recombinant human hyaluronidase PH20 enzyme rHuPH20. Other global pharmaceutical companies such as Janssen Pharmaceutica NV, Bristol-Myers Squibb Co., Eli Lilly and Co. and Alexion Pharmaceuticals Inc. have also introduced Enhanze technology to the development of their therapies in SC formulations.
- Like Halozyme, Alteogen is expected to transfer its hyaluronidase technology to other biotech companies and receive royalties as the SC formulations are commercialized.
Why Alteogen involved in non-exclusive licensing?
A non exclusive license is one:
1. where the owner of the intellectual property licenses one licensee,
2. is able to license other licensees as well,
3. and retains the right to exploit the intellectual property itself. A licensor can therefore grant numerous non exclusive licenses.
This non-exclusive licensing allows the Alteogen (licensor) to maximise the benefits anticipated from the commercialisation of the intellectual property, by separately licensing different companies (who can use the technology, and develop further) to different licensees.