Eli Lilly is further delving into the radiopharmaceutical field with a $140 million upfront deal with Radionetics Oncology.
The strategic pact with the San Diego biotech could turn into a $1 billion acquisition down the road, the companies said Monday morning. They did not detail a timeframe for the potential M&A exit. The fledgling biotech just announced a $52.5 million Series A in January.
Radionetics is making GPCR-targeting small molecules for radiopharmaceuticals, which have become one of the biggest areas of interest in the oncology R&D arena. While one of the most common target classes in drug development, GPCRs have been “largely unexplored” in the radiopharma world, Radionetics says on its website.
Lilly bought into the radiopharma space last fall with its $1.4 billion acquisition of POINT Biopharma. Novartis, Bristol Myers Squibb and AstraZeneca have all bought such startups in recent months as well.
Jacob Van Naarden“Furthering our commitment to radiopharmaceutical therapies, this relationship provides access to novel GPCR targets and the discovery capabilities of Radionetics Oncology,” Lilly Oncology president Jacob Van Naarden said in a press release.
Radionetics says its platform is agnostic to alpha- or beta-emitting radioisotopes. Such therapies can be difficult to manufacture, and large pharmas have run into sourcing hurdles, causing Bristol Myers to pause the enrollment of a Phase 3 study this year.
The biotech’s gallium-based lead asset is in early-stage testing for adrenocortical carcinoma. Radionetics also has plans in breast and lung cancer, it said last October.
Crinetics Pharmaceuticals spun out Radionetics in October 2021 with the help of 5AM Ventures and Frazier Healthcare Partners.
Editor’s note: This story was updated to note Bristol Myers paused the enrollment of its study, not delayed the completion.