Halozyme's request to invalidate Alteogen's (196170.KQ) manufacturing process patent in the United States will have no impact on Alteogen's existing business or its partnerships with Merck and other companies, according to analyst assessment.
Kim Sun-ah, a researcher at Hana Securities, said on the 15th that "Halozyme's claim concerns a manufacturing method patent, not a substance patent, so it cannot have any effect on the rights related to ALT-B4." She added, "Even if the manufacturing method patent is invalidated, it will not affect Alteogen's production of ALT-B4—it would only mean that third parties cannot be prevented from producing using that patented method." Kim maintained her "buy" rating and target price of 640,000 won.
Alteogen announced on the 12th of this month that "Halozyme has filed an inter partes review (IPR) with the Patent Trial and Appeal Board (PTAB) under the U.S. Patent and Trademark Office regarding our hyaluronidase manufacturing method patent." The patent in question relates to the cultivation and production process of hyaluronidase enzyme, which is separate from the substance patent that protects ALT-B4 itself—Alteogen's core subcutaneous injection conversion technology.
Kim noted, "Alteogen will contest this dispute, but if it finds itself in an unfavorable position, it can maintain the patent by amending the scope of rights." She added, "Halozyme claims this is related to matters disclosed in its own patents 'EP3037529' and 'WO2017/011598,' but this concerns patentability judgments regarding novelty and inventiveness, not an infringement claim."
"Since the parties to the patent disputes in the U.S. and Europe are Merck, not Alteogen, this invalidation request appears to stem from Halozyme's concern about potentially infringing Alteogen's patent rather than being a pressure tactic," Kim said. "Manufacturing methods do not have as straightforward a scope of rights as substances, and there is no evidence that Alteogen obtained its rights unreasonably like Halozyme allegedly did, making it difficult to predict the possibility of invalidation."
