Novartis is bolstering its leadership in the radiopharmaceutical space by partnering with US-based startup Ratio Therapeutics to develop a somatostatin receptor 2 (SSTR2) radiotherapeutic for cancer treatment.
As part of the agreement, Ratio stands to receive up to $745m in combined upfront and milestone payments, along with tiered royalties on sales. The collaboration focuses on preclinical research to identify an SSTR2-targeting development candidate, after which Novartis will take the lead on development, manufacturing, and commercialisation.
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A protein overexpressed in various cancers, SSTR2 is a key target for therapies due to its role in enabling precise and targeted treatment. Novartis is already a key player in this field with its pioneering radiopharmaceutical Lutathera (lutetium Lu 177 dotatate), which also targets SSTR2. Acquired in the $3.9bn purchase of Advanced Accelerator Applications in 2017, Lutathera was the first radiopharmaceutical approved by the FDA and the EMA for treating neuroendocrine gastroenteropancreatic tumours.
This latest partnership follows a surge of investment within the radiopharmaceutical space. In May, Novartis acquired Mariana Oncology in a $1.75bn deal, inheriting the latter’s lead candidate MC-339, a radioligand therapy (RLT) designed to target small-cell lung cancer. Meanwhile, other big pharma companies such as Bristol Myers Squibb (BMS) and Eli Lilly have also entered the arena, with acquisition deals worth $4.2bn and $1.4bn, respectively.
Ratio brings innovation to the table through its proprietary Trillium and Macropa platforms, which use alpha particles’ tumour-killing properties to develop tuneable radiopharmaceuticals. These platforms aim to expand the range of solid tumours that can be targeted. Earlier this year, Ratio secured $50m in Series B funding to accelerate the platforms’ development.
In the announcement accompanying the deal, Novartis’ president of biomedical research Fiona Marshall said: “Radioligand therapies hold transformative potential for certain forms of cancer, and Novartis is committed to maximising their impact by continually improving the benefit for patients.”
Radiopharmaceutical therapy – which involves targeting cancer cells with a radioactive drug consisting of a radioactive atom combined with a cell-targeting molecule – has seen substantial growth in recent years. Venture financing for innovative radiopharmaceutical drugs witnessed an increase from $63m in 2017 to over $400m in 2023 total deal value in the US, according to GlobalData’s Pharma Intelligence Center Deals Database.
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