[Alpha Biz=(Chicago) Reporter Paul Lee] Shares of bio firm Alteogen have skyrocketed. It is reported that it has signed an exclusive contract with MSD, a global pharmaceutical company, to develop SC (subdermal injection) formulation of Keytruda, an immuno-cancer drug. Investors are paying keen attention to the development as royalties are expected to reach KRW 1 trillion.

Alteogen shares rose 24.95% to close at 131,200 won on the 23rd. The increase slowed down after soaring to the upper limit during the day. Alteogen said the previous day that it changed its existing non-exclusive contract with MSD for SC formulation conversion technology of immuno-cancer drug Keytruda to "monopoly."

Keytruda is an immuno-cancer drug developed by MSD. It is a blockbuster drug that earned $ 25 billion (about 33 trillion won) in sales last year. MSD plans to release an Keytruda SC formulation with Alteogen's technology in 2025.

As Keytruda is a drug that generates tens of trillion won in annual sales, the industry expects Alteogen to pay a considerable amount of royalties if it succeeds in development. The royalty ratio is not disclosed, but the stock market estimates that it will earn royalties in the 3-5% range of net sales.

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