BMS Acquires RayzeBio for $4.1 Billion to Strengthen Radiopharmaceutical Pipeline

On February 26, Bristol Myers Squibb announced the completion of its acquisition of RayzeBio, a radiopharmaceutical biotechnology company. RayzeBio has become a wholly-owned subsidiary of Bristol Myers Squibb. According to the terms of the previous merger agreement, Bristol Myers Squibb acquired RayzeBio at a cash price of $62.5 per share, with a total equity value of approximately $4.1 billion (about 29.2 billion RMB).

Through this acquisition, BMS will gain RayzeBio's differentiated radiopharmaceutical technology platform based on α-emitters and multiple innovative pipeline products, including novel targeted radionuclide drugs such as RYZ101 and RYZ801, significantly enriching its oncology portfolio.

RayzeBio is a clinical-stage radiopharmaceutical therapy (RPT) company, holding an innovative leading position in actinium-based RPT and possessing a series of potential first-in-class and best-in-class drug development programs.

RayzeBio, Inc., headquartered in California, USA, was founded in 2020. In just three years, this innovative radiopharmaceutical therapy (RPT) company at the clinical stage has rapidly evolved into a comprehensive nuclear medicine company. It went public on NASDAQ in September 2023, raising a total of $311 million, ranking among the top IPOs in the global innovative drug sector in 2023, with unstoppable momentum.

The company's pipeline projects aim to treat solid tumors, with indications covering gastroenteropancreatic neuroendocrine tumors (GEP-NET), small cell lung cancer (SCLC), liver cancer, renal cancer, and more.

Based on the unmet need for more effective treatments in the field of solid tumor therapy, RayzeBio focuses on developing targeted radiopharmaceuticals, utilizing targeted radioisotopes (such as Actinium-225) to improve outcomes for cancer patients. RayzeBio believes that Radiopharmaceutical Therapy (RPT) is one of the most promising new approaches for treating solid tumors, where a single drug conjugate can be used for either diagnostic imaging or therapeutic purposes by switching the radioisotope.

Radiopharmaceutical Therapy Drugs Bind to Tumor Cells, Delivering Targeted Radiation to Induce Cancer Cell Death. Actinide Radiopharmaceutical Therapy Offers Potential Advantages Over Existing Radiopharmaceutical Therapies, as the High Potency and Short Range of α Emitters Create Stronger Efficacy and More Precise Delivery Possibilities.

Based on this, RayzeBio has rapidly established multiple targeted radiopharmaceutical R&D pipelines. Among them, the lead project RYZ101 is the most advanced, currently conducting Phase III clinical trials for the treatment of SSTR-positive GEP-NET patients, while the extensive-stage small cell lung cancer (ES-SCLC) indication has entered Phase I clinical stage. RYZ101 is an RDC targeting somatostatin receptor 2 (SSTR2), which is overexpressed in GEP-NETs and ES-SCLC.

Currently, a Phase III clinical trial is recruiting patients to evaluate RYZ101 for the treatment of SSTR-positive GEP NETs patients who have previously received lutetium-177-based somatostatin therapy. RayzeBio previously reported interim results from the Phase 1b ACTION-1 clinical trial, indicating encouraging efficacy and tolerability. A Phase 1b clinical trial is also currently enrolling patients to assess RYZ101 as a first-line treatment in combination with standard of care for ES-SCLC.

RYZ801 is a novel patented peptide targeting glypican-3 (GPC3) developed by RayzeBio for delivering actinium-based radiopharmaceutical therapy to treat hepatocellular carcinoma. RYZ801 is currently in IND-enabling studies.

In addition, the pipeline includes an asset targeting CA9, which is expressed in renal cell carcinoma and is currently in IND-enabling studies. Multiple first-in-class solid tumor assets are in preclinical stages.

In recent years, as multinational pharmaceutical companies such as Bayer and Novartis have entered the field of nuclear medicine, the nuclear medicine industry has come under the spotlight, with significant transactions occurring frequently and the market being highly active.

For example, on April 24, 2023, Novartis entered into a licensing and collaboration agreement with 3B Pharmaceuticals ("3BP") to jointly develop FAP-targeting peptide technology, including the drug FAP-2286, with a total deal value of up to $465 million. On September 20, 2023, Genentech, a subsidiary of Roche, formed a collaboration agreement worth over $1 billion with PeptiDream aimed at discovering and developing novel macrocyclic peptide-radioisotope (peptide-RI) conjugate drugs.

MNCs such as Novartis and Eli Lilly are expanding their nuclear medicine portfolios through mergers, collaborations, or equity investments. Behind these MNCs' significant investments lies their recognition of the potential of these innovative radiopharmaceutical therapies to emerge as a new transformative treatment approach, reshaping the future pharmaceutical market landscape and human life.

Among them, Novartis quickly built up a radioligand therapy technology platform through acquisitions and owns two blockbuster products, Lutathera and Pluvicto, securing the leading position in RDC. Lutathera was approved by the FDA in January 2018 for the treatment of SSTR-positive gastrointestinal pancreatic neuroendocrine tumors (GEP-NETs) and is the world's first marketed RDC. Pluvicto was approved by the FDA in March 2022 for the treatment of patients with castration-resistant metastatic prostate cancer (mCRPC) who are PSMA-positive and have previously received ARPI and taxane chemotherapy. Pluvicto is highly anticipated by Novartis and is expected to become the first RDC to join the billion-dollar molecular club. In addition, Novartis has several products under development, including 177Lu-FAP-2286, 177Lu-NeoBOMB1, and 225Ac-PSMA-617.

Bayer ventured into the nuclear medicine field relatively early, launching Xofigo a decade ago, followed by significant acquisitions of Algeta, Noria, and PSMA Therapeutics to further strengthen its RDC portfolio. Today, it has become one of the pioneers and leaders in this track. At Bayer's recent R&D Day meeting, the company introduced that it currently has 7 RDCs in preclinical stages and 2 in early clinical stages (BAY 3546828, BAY 3563254) under development.

In December last year, Eli Lilly also completed a nuclear medicine acquisition worth up to $1.4 billion. By acquiring POINT Biopharma, a nuclear medicine company, Eli Lilly obtained multiple RDCs, including two late-stage clinical products, PNT2002 and PNT2031, POINT's next-generation radioligand therapy technology platform, and the corresponding nuclear medicine supply chain.

Through this acquisition, BMS will not only gain several core radiopharmaceutical pipelines but also acquire RayzeBio's nearly complete "state-of-the-art" manufacturing facility in Indianapolis. This also means that BMS will soon be able to compete with leading peers in the radiopharmaceutical industry such as Novartis and Eli Lilly.

Bristol-Myers Squibb CEO Dr. Christopher Boerner once stated at the announcement of the agreement: "This transaction will bring a differentiated platform and pipeline, enhance our increasingly diversified oncology portfolio, and further strengthen our growth opportunities for the next five years and beyond. Radiopharmaceutical therapy has already transformed cancer treatment, and RayzeBio is at the forefront of pioneering this new approach. We look forward to, and will support, RayzeBio’s preclinical and clinical programs, and advance its innovative radiopharmaceutical platform."