Dive BriefingDive Briefing Eli Lilly is venturing into radiopharmaceuticals, acquiring an option to purchase Radionetics Oncology for $1 billion. Lilly initially invests $140 million, granting Radionetics time to build its pipeline during an “exercise period” before Lilly decides whether to complete the acquisition. Radionetics specializes in targeting G protein-coupled receptors with small molecule radiopharmaceuticals, focusing on solid tumor indications. Diving Insight Radiopharmaceuticals, offering a precise alternative to radiation therapy, have attracted substantial pharmaceutical investment. Companies like Lilly, Bristol Myers, and AstraZeneca recognize the potential value in this sector, spurred by technological advancements, clinical successes, and regulatory approvals. The challenges of production and delivery in the past have given way to expanded biotech capacity due to increased investment. Additional Details * Lilly’s investments in radiopharmaceuticals include: * $60 million for Aktis Oncology rights (May 2023) * $1.4 billion for Point Biopharma (2022), bringing three clinical-stage candidates * Radionetics originated from Crinetics Pharmaceuticals in 2021, securing $30 million for non-peptide radiopharmaceutical development * Series A funding of $52.5 million in 2023 * Investors include 5AM Ventures, Frazier Life Sciences, and Crinetics Pharmaceuticals
Dive briefing:
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Eli Lilly is expanding its business into radiopharmaceuticals and has entered into an agreement with Radionetics Oncology, giving the company an option to acquire the San Diego biotechnology company later for $1 billion.
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Lilly will pay Radionetics $140 million upfront for the options under the deal, which the companies announced Monday. Radionetics will continue to build its radiopharmaceutical drug pipeline through an “exercise period,” after which Lilly can choose whether to acquire the company.
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Radionetics develops small molecule radiopharmaceuticals that can target G protein-coupled receptors, a ubiquitous family of proteins that represent many attractive disease targets. The company’s focus is on solid tumors.
Diving insight:
Radiopharmaceuticals, a targeted alternative to radiation therapy, have become an area of significant pharmaceutical investment. Major companies such as Lilly, Bristol Myers and AstraZeneca have made acquisitions to enter the sector, lured by technical improvements, clinical successes and regulatory approvals.
Historically, the drugs have been difficult to produce and deliver, requiring tightly managed supply chains to ensure the radioisotopes they contain do not decay. The surge in investment has helped expand biotech’s capacity.
Lilly has already been active in this space this year, paying $60 million in May to startup Aktis Oncology for the rights to develop treatments discovered by the company against targets selected by Lilly.
The biggest investment came last year, when it acquired Point Biopharma for $1.4 billion. The deal gave the company three clinical-stage candidates, including two that could compete with radiopharmaceuticals from Novartis. Those therapies, Pluvicto and Lutathera, generated more than $1.5 billion in sales for the company last year.
Radionetics spun off from Crinetics Pharmaceuticals in 2021 with $30 million to develop non-peptide radiopharmaceuticals for a “broad range of oncology indications.” The company raised $52.5 million in a Series A earlier this year. The startup is backed by investors including 5AM Ventures, Frazier Life Sciences, DCVC Bio, GordonMD Global Investments, and by Crinetics Pharmaceuticals.
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