Alteogen Turns Profitable in Second Quarter as Keytruda SC Sales Surge

Alteogen posted consolidated revenue of 68.9 billion won and operating profit of 34.2 billion won in the second quarter of 2026, marking a return to profitability. In the same period a year earlier, revenue was 18.6 billion won and the company posted an operating loss of 400 million won. The 269.5% year-over-year surge in revenue was driven by the successful global market launch of Merck (MSD)’s subcutaneous (SC) formulation of the immuno-oncology drug Keytruda and revenue from new licensing agreements.

Merck’s Keytruda SC, marketed as Keytruda Qlex, generated global sales of $463 million (approximately 660 billion won) in the second quarter of 2026. That was about 3.6 times higher than the $128 million recorded in the previous quarter. Alteogen supplies its ALT-B4 enzyme technology for Keytruda SC and receives milestones and royalties linked to sales volume, meaning that growth in Keytruda SC sales directly translates into higher revenue for Alteogen.

■ SC formulation technology becomes essential for global big pharma

Alteogen’s core technology consists of the Hybrozyme™ platform, which converts intravenous (IV) formulations to subcutaneous (SC) formulations, and the ALT-B4 enzyme. It reduces administration time from the more than 30 minutes previously required to 2 to 5 minutes. According to clinical data, use of ALT-B4 reduced administration time by 49.7%, treatment-room time by 47.4% and health care professional time by 45.7%.

Global pharmaceutical companies are focusing on this technology for two main reasons. Converting blockbuster drugs to SC formulations can extend product life after patent expiration, while also providing a medical rationale based on improved patient convenience. For big pharma, using Alteogen’s platform is a more efficient option in terms of time and cost than developing the technology in-house.

■ Three agreements in 2026 alone; August deal worth up to $365 million

In early August 2026, just before the earnings announcement, Alteogen entered into an additional exclusive licensing agreement with an unnamed global pharmaceutical company for the development and commercialization of SC biologics. The agreement is worth up to $365 million, including upfront payments and development and sales milestones, with royalties based on net sales to be received separately after commercialization. Three major global agreements have already been completed in 2026 alone.

There was also a positive development regarding patent protection. Alteogen successfully defended its patent against a challenge filed with the U.S. Patent and Trademark Office (USPTO) by global competitor Halozyme, preserving Alteogen’s legal exclusivity in the SC formulation-conversion market. Industry experts believe the outcome of the patent dispute will also strengthen Alteogen’s negotiating position in future licensing discussions.

As Keytruda SC’s global market share continues to rise, the royalty revenue Alteogen receives is likely to accumulate over the next several years. ALT-B4’s application is expanding beyond oncology to large-volume biologics for autoimmune diseases and antibody-drug conjugates (ADCs), increasing expectations for additional technology-export agreements.