Global Pharma Giants Eli Lilly and Novartis Accelerate Investments in Radiopharmaceuticals Amid Intensifying Competition

　　【Pharmaceutical Network Industry Dynamics】Radiopharmaceuticals, also known as "nuclear medicines," refer to a class of special drugs containing radionuclides for medical diagnosis and treatment, showing potential applications in tumor treatment. Data predicts that the global nuclear medicine market will grow from USD 8.4 billion in 2023 to USD 29.4 billion in 2030, with an annual compound growth rate of 20%.
 

Facing a market space of tens of billions of dollars, the competition in the nuclear medicine sector is becoming increasingly fierce. In recent years, multinational pharmaceutical companies including Eli Lilly, Novartis, Bristol-Myers Squibb, and AstraZeneca have all stepped up their investments and presence in this field.
 

For example, just the other day, biopharmaceutical company Radionetics announced a strategic partnership with Eli Lilly to advance Radionetics' proprietary GPCR-targeted small molecule radiopharmaceuticals.
 

It is reported that Radionetics Oncology is a biotechnology company dedicated to the discovery and development of novel GPCR-targeted radiolabeled small molecule drugs for the treatment of various cancers, including breast cancer, lung cancer, and other unmet medical needs.
 

According to the terms of the agreement, Radionetics received $140 million in upfront cash. Eli Lilly has the right to acquire Radionetics for $1 billion after the exercise period ends.
 

It is worth mentioning that this is Eli Lilly's second acquisition in the field of nuclear medicine this year. On May 21, Aktis Oncology, an international biotechnology company, also announced a significant cooperation agreement with Eli Lilly. Under the agreement, Eli Lilly will pay an upfront fee of $60 million and potentially add up to $1.1 billion in milestone payments to leverage Aktis' technology for producing novel anti-tumor radiopharmaceuticals. Aktis Oncology focuses on discovering and developing new targeted alpha-radiotherapeutics for solid tumors and has completed its A+ round of financing, possessing strong technical expertise and promising prospects.
 

In addition, in October 2023, Eli Lilly announced the acquisition of POINT Biopharma Global Inc. for $1.4 billion. On December 28 of the same year, it was reported that Eli Lilly had successfully completed the acquisition of the company. POINT Biopharma Global Inc. is a radiopharmaceutical company developing radioligand therapies at clinical and preclinical stages for cancer treatment, with its core product being the radiopharmaceutical PNT. After the completion of the tender offer, Eli Lilly finalized the acquisition of POINT through a previously planned second-step merger.
 

Besides Eli Lilly, Novartis has also made new moves in the nuclear medicine field this year. On July 2, Novartis announced the official launch of construction for its radiopharmaceutical production project in China. This is Novartis' first radioligand therapy production base in China and its second innovative drug production base in the country, with a total investment expected to reach 600 million yuan. According to reports, provided that necessary regulatory approvals and permits are obtained, the radiopharmaceutical production project by Novartis China is expected to be completed and put into operation by the end of 2026.
 

CITIC Securities Research pointed out that compared with European and American countries, the utilization rate of nuclear medicine in China is relatively low, indicating huge market potential. The introduction of relevant policies is expected to standardize the development of nuclear medicine and provide greater growth opportunities for locally produced products in China.
 

Since the beginning of this year, in addition to the vigorous expansion of multinational pharmaceutical companies, domestic pharmaceutical enterprises have also been making continuous breakthroughs in the field of nuclear medicine. For example, on May 24, Dongcheng Pharmaceutical announced that its controlling subsidiary, Yantai Lannacheng Biotechnology Co., Ltd., received approval for clinical drug trials for its 177Lu-LNC1010 injection. The 177Lu-LNC1010 injection is a radiopharmaceutical treatment targeting Somatostatin Receptor 2 (SSTR2), and it is applicable for treating gastroenteropancreatic neuroendocrine tumors (GEP-NETs) that are positive for SSTR2. Currently, the only drug with the same target available globally is Novartis' Lutathera, which recorded sales of $605 million in 2023. Also in May, INR101 injection from Yunnan Baiyao's wholly-owned subsidiary, Yunhe Pharmaceuticals, was approved by the National Medical Products Administration to conduct clinical trials on healthy individuals and prostate cancer patients. INR101 injection is an innovative radioactive diagnostic drug developed by Yunhe Pharmaceuticals, classified as a Category 1 chemical drug, and is used for PET imaging of PSMA-positive lesions in prostate cancer patients.
 

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