Alteogen: Block Deal Sale of About 3% of Shares

• On 27 March, Alteogen announced that Jeong Hye-shin, former Alteogen Chief Strategy Officer (CSO), sold 1.6 million shares of Alteogen stock in after-hours trading in block deal sale.

• The block deal sale price was 197,770 won. Alteogen's share price declined by 10.9% today to 195,600 won. Block deal sale amount was about 316 billion won.

• This block deal sale combined with the sharp recent, share price increase are likely to result in a near-term consolidation of its share price in the next several months.

Conclusion First

On 27 March, Alteogen Inc (196170 KS) announced that Jeong Hye-shin, former Alteogen Chief Strategy Officer (CSO), sold 1.6 million shares of Alteogen stock in after-hours trading. The block deal sale price was 197,770 won. Alteogen's share price declined by 10.9% today to 195,600 won due to this block deal sale.

Jeong Hye-shin is one of the founders of Alteogen and the wife of CEO Park Soon-jae. She has been involved in the business of Alteogen since its establishment in 2008, and officially retired in September 2023. Post this stock sale, Jeong Hye-shin's stake in Alteogen declined from 3.85% to 0.78%. For now, the identity of the buyer has not been made public but it is a foreign institutional investor.

In our view, with this block deal sale combined with the sharp share price increase in the past several months are likely to result in a near-term consolidation of its share price in the next several months.

Valuation remain lofty. It is trading at P/E of 186x and P/B of 49x using 2025 consensus estimates. In addition, some investors will have increasing concerns with an insider selling nearly 3% stake in the company.

Alteogen Company Background

Founded in 2008, Alteogen is a Korean biotechnology company that focuses on the development and commercialization of novel biologics such as Antibody-Drug Conjugates (ADCs) and biobetters and biosimilars, including Eylea® biosimilar under global phase 3 clinical trial.