Major Pharma Giants Ramp Up Investments in Radiopharmaceuticals, Racing to Capture a $13.7 Billion Market

　　【Pharmaceutical Network Industry Dynamics】Radiopharmaceuticals, also known as nuclear medicines, have seen a surge in interest over the past two years. According to reports, many leading pharmaceutical companies have successively entered the nuclear medicine sector through acquisitions, equity investments, technology introductions, and other methods.
 

As of June 30, 2024, Eli Lilly and Company reached a collaboration with Radionetics to introduce its small-molecule G protein-coupled receptor (GPCR)-targeted radiopharmaceutical technology. According to the agreement terms, Radionetics will receive an upfront payment of $140 million (equivalent to 1.018 billion RMB). Both parties will jointly advance novel small-molecule radiopharmaceuticals targeting GPCRs for the treatment of a wide range of solid tumors. As part of the strategic collaboration, Eli Lilly has obtained exclusive rights to acquire Radionetics for a potential acquisition fee of $1 billion, with no specified deadline. During the collaboration period, Radionetics will apply its proprietary discovery platform to continuously develop a pipeline of small-molecule radioligand therapies targeting GPCRs.
 

It is reported that before the cooperation agreement on June 30, Eli Lilly also repeatedly increased its investment in nuclear medicine. For instance, in May this year, Eli Lilly reached an agreement with Aktis Oncology to gain the rights to develop radiopharmaceutical therapies and diagnostic products discovered by Aktis for a series of specific targets selected by Eli Lilly on a global scale. In October 2023, Eli Lilly acquired Point Biopharma for $1.4 billion, whose core product, PNT2002, is a nuclear medicine.
 

In addition to Eli Lilly, Novartis, AstraZeneca, Bayer, Johnson & Johnson, Bristol-Myers Squibb (BMS), Roche, and other leading multinational pharmaceutical companies are also entering the radiopharmaceuticals sector.
 

On July 2, 2024, Novartis China's radiopharmaceutical production project officially commenced construction in Haiyan, Zhejiang. This is Novartis' first radioligand therapy production base in China. The total investment for the project is expected to reach 600 million RMB. Provided that all necessary regulatory approvals and permits are obtained, the radiopharmaceutical production project by Novartis China is projected to be completed and commence operations by the end of 2026.
 

Moreover, in early May this year, Novartis announced that it would acquire nuclear medicine company Mariana Oncology for $1.75 billion; in March this year, AstraZeneca announced the acquisition of nuclear medicine company Fusion Pharmaceuticals for $2.4 billion; in December 2023, Bristol-Myers Squibb announced the acquisition of nuclear medicine company Rayze Bio for $4.1 billion...
 

From a commercialization perspective, Novartis is advancing rapidly in the nuclear medicine field, with two products already on the market. Pluvicto, developed by Novartis, was approved in the United States in March 2022 as a targeted radiopharmaceutical for the treatment of patients with metastatic castration-resistant prostate cancer (mCRPC). Data shows that the drug generated global sales of $271 million in 2022 and reached $980 million in 2023, marking a year-on-year increase of 261%.
 

In recent years, the field of nuclear medicine has shown rapid development. Data predicts that from 2022 to 2032, the global market size for radiopharmaceuticals is expected to grow from $5.2 billion to approximately $13.67 billion, expanding at a compound annual growth rate (CAGR) of 10.2% between 2023 and 2032.
 

In China, although the development of nuclear medicine started relatively late, in recent years, with the support of national policies and the increase in market demand, this field is about to embrace new development opportunities. The trend for nuclear medicine will be increasingly positive. Industry experts have pointed out that, in the face of challenges, domestic pharmaceutical companies, relevant research teams, and medical institutions are constantly seeking cooperation to accelerate the R&D process, technological innovation, and transformation, achieving continuous breakthroughs. Currently, multiple radioactive drugs, including those for integrated radiotherapy diagnostics, are already in clinical trial stages. It is believed that more and more radioactive drugs will soon be launched to benefit patients.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.