Investment in radiopharmaceuticals is ramping up as big pharma shows a growing appetite for this promising drug modality.
Radiopharmaceuticals see radioactive isotopes being delivered into a target, typically a cancer cell, to kill it. While they have existed for decades, interest in this drug modality was originally limited due to the elevated risk of side effects associated with this approach.
More recently, multiple companies have started exploring novel approaches to make radiopharmaceuticals safer and more effective at specifically targeting cancer cells. This has led investors and large pharmaceutical companies to show an increasing interest in the space.
In the past year alone, the industry has seen large deals in this area, including Eli Lilly’s acquisition of Point Biopharma for $1.4bn at the end of 2023, Novartis’ acquisition of Mariana Oncology for $1.75bn in May 2024, and, most notably, the $4.1bn acquisition of RayzeBio by Bristol Myers Squibb in December last year.
Radiopharmaceuticals have also been the target of large partnership deals, including a recent $140 million partnership between Eli Lilly and Radionetics, as well as the launch of contract development and manufacturing organizations (CDMOs) that specialize in the development and production of radiopharmaceuticals.
Radiopharmaceuticals market
The global radiopharmaceuticals market was estimated at almost $6bn in 2023, a figure that is expected to more than double by 2033, reaching nearly $14bn.
The growing potential of this space has attracted venture capital to fund radiopharmaceuticals startups, with some notable fundraisings announced in the past year.
Here are five startups specializing in radiopharmaceuticals that have raised funds from venture capital investors in the past two years.
Abdera Therapeutics
Headquarters: Vancouver, Canada
Founded: 2020
Abdera Therapeutics is a biopharmaceutical company that develops antibody-based radiopharmaceutical therapies for a wide range of cancer indications designed to prevent the common side effects of this drug modality. The company’s technology platform leverages antibody engineering to design precision radiopharmaceuticals that are customizable and present high affinity binding to their target.
Abdera raised $110m in a series B financing round in April 2023 to fund the development of its lead radiopharmaceutical candidate, a radiopharmaceutical targeting the delta-like ligand 3 (DLL3) protein, for the treatment of small cell lung cancer.
Aktis Oncology
Headquarters: Boston, Massachusetts, US
Founded: 2020
Aktis Oncology is developing a novel type of radiopharmaceuticals called miniprotein radioconjugates, which are designed to increase the penetration and retention of the radiopharmaceuticals inside cancer cells. This strategy intends to maximize the killing of tumor cells while minimizing side effects by rapidly clearing the miniprotein radioconjugates from any areas of the body other than the intended target.
In September 2024, the company completed a $175m series B financing round to continue advancing its pipeline of radiopharmaceutical candidates. Earlier this year, Aktis had signed a $1.1bn deal with Eli Lilly to develop cancer radiotherapies.
Artbio
Headquarters: Boston, Massachusetts, US
Founded: 2021
Artbio focuses on the development of a new class of alpha radioligand therapies (ART) against a wide range of cancer indications. The company’s drug discovery and development pipeline centers around Pb212, a radioligand that emits alpha radiation, to cause increased damage to the target cancer cells while preventing damage to healthy tissues.
In December 2023, Artbio raised $90m in a series A round to support the development of its technology platform and distributed manufacturing network, as well as advance its lead program into the clinic for the treatment of prostate cancer.
C Ray Therapeutics
Headquarters: Chengdu, China
Founded: 2020
C Ray Therapeutics specializes in the development of radionuclide drug conjugates (RDCs), which consist of a drug carrier molecule linked to a radioactive molecule. This drug modality enables the delivery of the radiotherapeutic payload to a specific target, a strategy that is designed to reduce the potential side effects of the systemic delivery of radiopharmaceutical therapies.
The company announced a $100 million series A+ round in November 2024, which will fund the development of novel therapeutic candidates and the expansion of C Ray’s CRDMO services in the radiopharmaceuticals space.
Nucleus RadioPharma
Headquarters: Rochester, Minnesota, US
Founded: 2022
Nucleus RadioPharma was established by venture capital firm Eclipse together with the Mayo Clinic, which is one of the largest centers for radiopharmaceuticals treatment in the world. The company’s goal is to increase patient access to radiopharmaceuticals by developing innovative technologies that modernize their development and manufacturing and addressing key challenges such as limited production capacity and a fragmented supply chain.
In October 2023, just a year after its foundation, Nucleus announced a $56m series A investment round to build new facilities for the development and manufacture of radiopharmaceuticals.
