Eli Lilly has formed a "strategic relationship" with San Diego-based Radionetics Oncology, giving Lilly access to Radionetics’ pipeline of small molecule oncology radiopharmaceuticals as well as the exclusive option to buy the company.
Per the deal, Lilly will hand Radionetics a $140 million upfront cash payment. Lilly will obtain the exclusive right to acquire Radionetics upon conclusion of an exercise period for $1 billion. During the exercise period, Radionetics will continue to build out a proprietary pipeline of therapeutic assets. These will include small molecule radioligand therapeutics targeting G protein coupled receptors (GPCRs) using the Radionetics proprietary discovery platform and associated intellectual property.
Radionetics, which launched as a spinout of Crinetics Pharmaceuticals in 2021, focuses on targeted, nonpeptide radiopharmaceuticals. The biotech is advancing a pipeline of novel small molecule radioligands targeting G protein coupled receptors for the treatment of a broad range of cancers, including breast cancer, lung cancer and other indications of high unmet need.
For Eli Lilly, the deal follows a series of strategic plays in the radiopharma space. The drugmaker made its foray into radiopharma late last year, paying $1.4 billion to pick up POINT Biopharma. POINT, whose lead candidate is aimed at metastatic castration-resistant prostate cancer, has its own 80,000-square-foot facility equipped to handle large commercial volumes.
In May, Lilly signed a potential $1.1.6 billion deal with Boston-based biotech Aktis Oncology to develop innovative anticancer radiopharmaceuticals using Aktis’ proprietary miniprotein discovery platform. The collaboration targets a specific set of tumor-associated antigens, hopefully optimizing therapeutic efficacy and minimizing side effects.