Dive summary:
Eli Lilly is continuing its expansion into radiopharmaceuticals, signing an agreement with Radionetics Oncology that gives it the option to later acquire the San Diego biotech company for $1 billion.
Lilly will pay Radionetics $140 million up front for option rights under the agreement, which the companies announced MondayRadionetics will continue to develop its portfolio of radiopharmaceutical drugs during an “exercise period,” after which Lilly may choose whether to acquire the company.
Radionetics develops small molecule radiopharmaceuticals capable of targeting G protein-coupled receptors, a ubiquitous protein family which present many interesting therapeutic targets. The company focuses on solid tumors.
Dive Overview:
Radiopharmaceuticals, a targeted alternative to radiotherapy, have become an area of ​​interest major pharmaceutical investment. Large companies like Lilly, Bristol Myers And AstraZeneca have made acquisitions to enter the space, attracted by technical improvements, clinical successes and regulatory approvals.
Historically, manufacturing and distributing these drugs has been challenging, requiring careful management of supply chains to ensure that the radioisotopes they contain do not degrade. Increased investment has helped drive the development of biotechnology capabilities.
Lilly has already been active in the field this year, paying for startup Aktis Oncology $60 million in May for development rights to treatments discovered by the company against targets selected by Lilly.
Its biggest investment came last year, however, when it acquired Point Biopharma for $1.4 billion. The deal gave the company three clinical-stage candidates, including two that could compete with Novartis’ radiopharmaceuticals. Those therapies, Pluvicto and Lutathera, allowed the company to achieve a turnover of more than 1.5 billion dollars Last year.
Radionetics was born from Crinetics Pharmaceuticals in 2021 with $30 million develop non-peptide radiopharmaceuticals for a “broad range of oncology indications.” The company subsequently raised a Series A round of $52.5 million at the beginning of this yearThe startup is backed by investors including 5AM Ventures, Frazier Life Sciences, DCVC Bio, GordonMD Global Investments and Crinetics Pharmaceuticals.
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