New Jersey-based pharmaceutical company Merck and South Korea's Alteogen (KOSDAQ:196170) partnered to develop an injectable version of Keytruda, but California-based biotechnology firm Halozyme Therapeutics claims the drug infringes on its patents.

A patent dispute could threaten Merck's strategy to extend Keytruda's market dominance beyond its IV version's patent expirations. Halozyme signaled a preference for licensing agreements but did not comment on litigation, the Wall Street Journal reported Wednesday.

Merck, which filed invalidity petitions against Halozyme's patents, insists the claims are baseless. The subcutaneous Keytruda, still in clinical trials, is expected to launch by early 2026, the report said.

Halozyme and Alteogen both develop hyaluronidase enzyme-based drug delivery technologies, competing for injectable drug formulations.

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