Alteogen said it has signed a licensing agreement with Cristalia, a Brazilian firm, for ALT-P1, a persistent growth hormone for children.

Under the accord, Cristalia will invest about 50 billion won ($42.4 million) into conducting phase 2 and 3 clinical trials in Brazil after producing the treatment’s candidate.

After the completion of the clinical trial, Cristalia will sell the product in Latin America, including Brazil, while Alteogen will receive the research data and market the product in the rest of the world. The two companies will also receive royalties from each other on the product sales in their respective region.

"The agreement has proved the superiority of our persistent human growth hormone technology globally and will help us speed up expansion," an Alteogen official said. "In the case of the persistent growth hormone for children, it is challenging to obtain patients for clinical purposes."

With the contract, however, the company can sharply shorten clinical trial period, by carrying it out in Brazil where securing of patients is relatively easy, he added.

The global market for growth hormone is estimated to be more than 4 trillion won. Aside from the drug's marketability for children, the Korean company also expects the treatment will also help with other illnesses such as Turner's syndrome, chronic renal failure, adult human gonad hormone deficiency, and aging prevention, Alteogen said in a news release.