Big pharmaceutical companies are investing heavily in a promising new class of cancer treatments known as targeted radiopharmaceutical therapy (TRT), which some Wall Street analysts are calling a “massive opportunity.” TRT works by delivering radiation directly into tumors using a targeting molecule attached to a radioactive particle. According to RBC Capital Markets, this emerging field represents a $25 billion market opportunity.
In recent months, four significant acquisitions in the TRT space have been announced. Novartis, already a market leader with two targeted radiotherapies—Pluvicto and Lutathera—recently agreed to acquire Mariana Oncology for $1 billion. Pluvicto, which treats advanced prostate cancer, and Lutathera, targeting neuroendocrine tumors, are expected to generate $5 billion in revenue by 2028. The acquisition of Mariana Oncology aims to enhance Novartis's discovery capabilities in developing radioligand therapies for various cancers.
Other major pharmaceutical companies are also entering the TRT arena. Eli Lilly, benefiting from its successful diabetes and weight-loss drugs, completed a $1.4 billion acquisition of Point Biopharma in December 2023. Point Biopharma's targeted radiation drug, PNT2002, has shown promising results in a phase three trial for metastatic castration-resistant prostate cancer. Additionally, Eli Lilly has invested $60 million in Aktis Oncology to leverage its miniprotein technology platform for anticancer radiopharmaceuticals.
Bristol-Myers Squibb has joined the fray with its $4.1 billion acquisition of RayzeBio in February 2024. This deal brings RayzeBio’s pipeline, including its late-stage targeted radiopharma therapy RYZ101, into Bristol-Myers Squibb’s portfolio. The company is also conducting a phase one trial for small-cell lung cancer. AstraZeneca has announced plans to purchase Fusion Pharmaceuticals for $2.4 billion, adding Fusion’s phase two clinical trial for FPI-2265, a potential treatment for metastatic castration-resistant prostate cancer, to its assets.
The surge in interest and investment in TRT has been driven by the potential for these therapies to target a wider range of cancers with improved therapeutic potency. Analysts like Oppenheimer’s Jeff Jones and Piper Sandler’s Edward Tenthoff highlight the strategic importance of these acquisitions and the competitive pressure it has created among big pharma companies.
Radiopharmaceuticals are also being explored for use in conjunction with other treatments, such as immunotherapy, and may eventually treat a broader spectrum of cancers, including ovarian, breast, and brain tumors. As Piper Sandler’s Tenthoff noted, alpha emitters like actinium, used by companies such as Bristol’s RayzeBio, offer a potent and localized treatment option compared to beta emitters.
The TRT field is poised for significant growth, with analysts predicting that leveraging decades of cancer research can identify new opportunities for targeted therapies. As Novartis and its competitors expand their market presence and product offerings, the potential for TRT to revolutionize cancer treatment and create substantial value in the pharmaceutical industry appears increasingly likely.
