Novartis licenses preclinical radioligand in $900M BoomRay deal

Novartis has licensed a preclinical radioligand therapy from Chinese biotech BoomRay Therapeutics. The deal could be worth up to $900 million to BoomRay, including an upfront payment, development milestones, and sales royalties.

Shiva Malek, Ph.D., Novartis’s global head of oncology biomedical research, stated the agreement aligns with the company's strategy. "Radioligand therapies represent an important frontier in oncology, and at Novartis, we remain focused on driving breakthrough science that can expand their potential for patients," Malek said.

Deal specifics and pipeline

Financial specifics and details of the licensed program were not disclosed. BoomRay's pipeline includes a brain tumor diagnostic and theranostics for solid tumors targeting specific proteins.

Bo Shan, Ph.D., CEO of BoomRay, called the agreement a significant milestone. He said it validates the company's discovery and development capabilities.

The deal follows Novartis's recent discontinuation of a mid-stage radioligand asset due to disappointing data. In July, CEO Vas Narasimhan affirmed the company's commitment to the radioligand modality remained unchanged.

A shifting competitive landscape

Novartis currently leads the radioligand market with its approved therapies Pluvicto for prostate cancer and Lutathera for neuroendocrine tumors. The competitive field intensified with a major acquisition announcement.

Australian radiopharma company Telix Pharmaceuticals announced it is acquiring ITM Isotope Technologies for $1.65 billion upfront. ITM is the supplier of the lutetium-177 isotope used in Novartis's Pluvicto.

The primary asset in the Telix-ITM deal is ITM-11, a radioligand therapy candidate. The U.S. Food and Drug Administration recently rejected ITM-11 for manufacturing reasons. The drug was submitted for approval to treat gastroenteropancreatic neuroendocrine tumors, positioning it as a direct competitor to Novartis's Lutathera.

Strategic implications

ITM plans to refile ITM-11 with the FDA. Securing a path to approval is a key condition for the Telix acquisition to close. Analysts from William Blair praised the merger, suggesting the combined entity could become a global radiopharmaceutical powerhouse.

Novartis's new deal with BoomRay, while preclinical, represents a strategic effort to bolster its pipeline amid this strengthening competition. The company is combining external innovation with its internal research capabilities to maintain its position.