SHINE Secures $50 Million Debt Financing to Advance Tumor-Targeting Radioisotope Development

On October 14, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that SHINE Medical Technologies (SHINE), a developer of medical isotopes, announced the completion of $50 million in debt financing. The round was led by Oaktree Capital Management (Oaktree).

SHINE will use the funds from this round of financing to build a medical isotope production base, and develop and commercialize Lutetium-177 for the treatment of neuroendocrine cancers.

Reportedly, SHINE has completed seven rounds of financing, raising a total of over $160 million. Among these, the company closed a $30 million Series B round in November 2018 and secured $29.3 million in debt financing in April 2017.

SHINE, established in 2010 and headquartered in Wisconsin, USA, is a medical isotope production company. The company is primarily engaged in the development, production, and sales of medical tracers and medical isotopes to facilitate isotope therapy for cancer patients. Isotope therapy is a form of chemotherapy that primarily utilizes radiation emitted from the decay of certain radioactive elements and their isotopes to treat cancer.

Medical isotopes, also known as radionuclides, play a significant role in disease diagnosis and treatment. SHINE primarily provides medical isotopes such as Molybdenum-99, Iodine-131, Iodine-125, and Xenon-133. Molybdenum-99 is a radioactive element used for the diagnosis and staging of cancer and heart disease. Iodine-131 can be used to assess patients' liver function and renal blood flow (RBF), and to treat conditions such as thyroid cancer, hyperthyroidism, and urinary tract obstruction. Iodine-125 is commonly used for diagnosing deep vein thrombosis in the legs and treating prostate cancer and brain tumors.

Ninety-nine percent of the world’s molybdenum-99 is sourced from processing facilities located in Australia, Europe, and South Africa. Molybdenum-99 is the most widely used radioactive isotope in modern medical imaging; statistics indicate that this medical radioisotope facilitates the diagnosis and treatment of 56,000 patients in the United States each day. However, due to its rapid decay rate of approximately 1% per hour, molybdenum-99 has stringent storage requirements. Previously, the United States relied entirely on imports for its molybdenum-99 supply, which was produced using highly enriched uranium.

SHINE’s advanced technology enables the scalable production of molybdenum-99 (Mo-99) through a safer, cleaner, and more cost-effective process that integrates seamlessly with existing Mo-99 supply chains. The company’s manufacturing process has reduced reliance on nuclear reactors and does not use highly enriched uranium at any stage.

In 2016, the U.S. Nuclear Regulatory Commission (NRC) approved SHINE’s construction of its first manufacturing facility in Wisconsin, marking the first time in nearly 50 years that the NRC had authorized such a plant. The facility, completed in 2021, is designed for the large-scale production of medical isotopes. SHINE states that the plant primarily serves the U.S. market and that its molybdenum-99 output can meet one-third of global demand.

Furthermore, the Institute of Organic Chemistry and Biochemistry of the Czech Academy of Sciences (CAS) has reached an agreement with SHINE to grant SHINE an exclusive global license for a separation technology. SHINE stated that it will use this separation technology to produce lutetium-177 (Lu-177)-labeled radiopharmaceuticals to enhance the efficacy of tumor treatment.

“Oaktree has extensive investment management experience, and we are delighted to secure its investment,” said Greg Piefer, Founder and CEO of SHINE. “Oaktree will help SHINE build isotope production facilities and bring our products to market.”

Oaktree General Manager Milwood Hobbs Jr. added, “SHINE is an outstanding company with a strong management team and exceptional technology. The company’s medical isotope production facility will meet the healthcare needs of millions of cancer patients worldwide.”

Oaktree, founded in 1995 and headquartered in California, USA, is a publicly listed venture capital firm. The company provides financial support and services to enterprises across various industries, with a broad investment portfolio.

(Compiled by Xu Xiaoxue)