5 Radiopharma Biotechs to Watch for Potential Buyouts

Big Pharmas are snapping up radiopharmaceutical biotechs left and right, inspired by the market-leading position of Novartis, which has two therapies already approved. Behind these big ticket deals are a clutch of biotechs continuing to go at it alone.

The use of targeted radioisotopes to treat cancer is not for the faint of heart. The specialized nature of this class of medicines means a Big Pharma can’t just buy the drug and cast off the rest of the company, as is often done when buying out a small company.

Novartis has been the clear leader, with Pluvicto approved for prostate cancer and Lutathera for neuroendocrine tumors. The company developed Lutathera in-house and acquired Pluvicto through the acquisition of Endocyte in October 2018 in a deal valued at over $2 billion. The Swiss pharma has been hungry ever since to expand its pipeline in the space, with the acquisition of Mariana Oncology for $1 billion and a licensing deal expansion with PeptiDream, both this past spring.

In 2023, Novartis’ peers started to take notice. Eli Lilly kicked off a string of deals in October 2023 with the $1.4 billion acquisition of Point BioPharma and followed that up with a partnership with Aktis Oncology that could also top $1 billion. Meanwhile, Bristol Myers Squibb dropped more than $4 billion in December 2023 for radiopharma-focused RayzeBio. And most recently, Sanofi is dipping its toe into the space, with a licensing deal worth $356 million upfront with RadioMedix.

With so much cash being thrown around to buy into radiopharma, which biotechs are making waves on their own and may soon be wrapped up in the next Big Pharma deal? Here are five radiopharma companies you may be hearing about soon.

Radiopharma-hungry Lilly inked a partnership with Aktis Oncology in May for $60 million, gaining access to the biotech’s targeted anticancer medicines. The deal could reach a whopping $1.1 billion in potential milestones and royalties later on.

Aktis is using alpha-emitting particles for precision cancer targeting, while avoiding side effects. Lead programs target urothelial and other cancers.

Late last month, Aktis also raked in a sizable $175 million oversubscribed Series B, underscoring the interest in the space. The round was led by RA Capital Management and co-led by RTW Investments and Janus Henderson Investors. Other participants included Bristol Myers Squibb, Lilly and MRL Ventures Fund, Merck’s venture fund, putting an exclamation point on the radiopharma frenzy.

Aktis’ lead candidate is AKY-1189, a miniprotein alpha radioconjugate targeting Nectin-4 in development for solid tumors. The biotech has plenty of cash to go it alone for now, with CEO Matthew Roden reporting $300 million on hand. But with a trio of Big Pharmas making chase, Aktis is sure to be in the news again very soon.

Launched in June last year, ARTBIO is creating a new class of radioligand therapies using the alpha-precursor isotope (Pb212) and tumor-specific targets. ARTBIO’s pipeline is still preclinical, but the most advanced is AB001, which targets prostate cancer.

A December 2023 Series A, co-led by Third Rock Ventures and an undisclosed healthcare fund, brought in $90 million. Since then, the biotech has been signing deal after deal to shore up supply and manufacturing. Another deal from May will see ARTBIO work with fellow clinical-stage biotech FogPharma to develop so-called HEARTs, or Helicon-enabled 212Pb alpha radioligand therapies—a combination of both companies’ platforms.

This biotech is not developing therapies but instead offering integrated manufacturing and supply chain organization for radiopharmaceuticals. Nucleus’ platform has already attracted an investment from AstraZeneca, which pitched in to a Series A extension in June. Financial details were not disclosed, but the biotech raised $56 million in the original oversubscribed Series A one year ago, led by GE Health and Eclipse.

The cash was expected to go towards multiple new manufacturing facilities around the U.S., including one near the Mayo Clinic, a contributor to the Series A round. Additional funds would help build technology for the development, manufacturing and distribution of radiopharmaceuticals.

Novartis has returned to Japanese biotech PeptiDream time and time again to refill its stock of radiopharmaceuticals. In April, the two companies re-upped a partnership to total more than $2.7 billion in milestones. But the pair have been working together since 2010.

And Novartis is not PeptiDream’s only partner. The company also has deals with Roche’s Genentech, Lilly and Merck, totaling billions in potential milestones.

So what is PeptiDream’s secret sauce? Its Peptide Discovery Platform System can find new drugs based on macrocyclic peptides, which can be screened against any biological target of interest very quickly, according to the company. PeptiDream boasts a 95% success rate. The technology was licensed from the University of Tokyo and optimized in-house.

The company’s extensive pipeline is populated by other partnerships, including with Biohaven and RayzeBio, which was acquired by BMS for $4.1 billion in December 2023. Most but not all are in cancer, with PeptiDream’s single internal program, a myostatin inhibitor, focused on developing radioligands for obesity and other muscle disorders.

Sanofi found the ideal partner to join the radiopharma race in RadioMedix last month, signing a deal that also included French radioligand developer Orano Med. Sanofi handed over €100 million ($110 million) upfront, with €220 million ($242.5 million) in sales milestones, plus royalties, to access a neuroendocrine tumor candidate.

The deal focused on AlphaMedix, a targeted radioligand therapy that uses lead-212Pb to target cancer. RadioMedix and Orano Med are running a Phase II clinical trial for the candidate in patients with neuroendocrine tumors, with a readout expected this year.

The company also has two other clinical programs and some earlier-stage assets in preclinical testing. In addition to therapeutics, RadioMedix develops radiopharmaceuticals for diagnosis and monitoring of cancer and has capabilities from development up to manufacturing.