Eli Lilly is expanding its radiopharmaceutical portfolio with a $140 million upfront payment to Radionetics Oncology and the exclusive future right to acquire the biotech for $1 billion.
Eli Lilly on Monday signed a strategic partnership with Radionetics Oncology, which not only provides the pharma with a pipeline of promising cancer radiotherapeutics but also gives it the exclusive right to buy the San Diego biotech down the line.
The agreement includes a $140 million upfront payment from Lilly as well as the potential right to acquire Radionetics for $1 billion. The companies did not provide specific details or a timeline for the potential buyout but said that it would occur “upon the conclusion of an exercise period.”
Jacob Van Naarden, president of Lilly oncology, in a statement said that the partnership with Radionetics gives the pharma “access to novel GPCR targets” and the robust discovery capabilities of the biotech.
Radionetics focuses on the development small molecule radiopharmaceuticals. The biotech targets GPCRs, a large family of membrane proteins that help transmit signals from outside the cell inside. According to its website, GPCRs represent a “vast and largely unexplored” class of targets for radiopharmaceuticals.
Radionetics contends it leverages a “vast knowledge of GPCR biology” combines it with its platform’s “unrivaled proficiency” in designing small molecule drugs, resulting in highly selective radiopharma therapies.
The approach “uniquely pairs the power of radiopharmaceuticals with the precision of small molecule targeting to novel GPCRs,” COO Brett Ewald said in a statement.
Radionetics’ GPCR-targeting drug development technology has resulted in its lead candidate 68Ga-R8760, a gallium-based radioligand conjugate that targets the MC2R protein, which is highly expressed in the rare cancer adrenocortical carcinoma. The biotech kicked off the Phase I study of 68Ga-R8760 in October 2023 and announced plans to launch clinical programs in breast and lung cancer.
For Lilly, Monday’s partnership with Radionetics continues its recent investment spree in the radiopharma space. In October 2023, the pharma snapped up Point Biopharma for $1.4 billion. The acquisition, closed in December 2023, gave Lilly ownership of PNT2002, Point’s lead asset and an investigational radioligand therapy for metastatic castration-resistant prostate cancer.
At the time, Van Naarden said that the Point acquisition signaled the “beginning of our investment in developing multiple meaningful radioligand medicines for hard-to-treat cancers.”
In May 2024, Lilly partnered with Aktis Oncology for $60 million upfront and the promise of $1.1 billion in royalties. The deal gave Lilly worldwide rights to develop certain radiopharma therapies and diagnostics discovered by Aktis based on specific targets.
