Alpha-9 raises $175m in Series C funding for radiopharma

Alpha-9 Oncology recently secured $175 million in a Series C funding round to further its development of radiopharmaceuticals. This financing will support the company's efforts to bring its preclinical candidates to a stage where they are prepared for clinical trials and to enhance its research and development capabilities. Headquartered in Vancouver, Canada, Alpha-9 has a range of preclinical programs targeting various receptors, including MC1R, PSMA, GRPR, CXCR4, and B1R, as reported by GlobalData’s Pharma Intelligence Center.

In May 2024, the company began dosing the first patient in its Phase I study for its MC1R program, called A9-3202. This radiopharmaceutical aims to image locally advanced or metastatic melanoma by targeting the melanocortin 1 receptor. The trial will assess the uptake of A9-3202 in tumors and its distribution in normal tissue among melanoma patients.

The Series C funding, co-led by Lightspeed Venture Partners and Ascenta Capital, follows a $75 million Series B round in December 2022 and an $8.9 million Series A round in 2021. These investments came three years after Alpha-9 was spun out from the University of British Columbia. Other notable investors in the latest funding round include a16z Bio + Health, RA Capital Management, Janus Henderson Investors, and Samsara BioCapital.

The recent influx of investment into the radiopharmaceutical sector has been significant. Earlier this month, Aktis Oncology also raised $175 million to fund the development of its new radiopharmaceuticals, including a novel Nectin-4-targeted miniprotein radioconjugate. Meanwhile, major pharmaceutical companies like Bristol Myers Squibb, Novartis, and Eli Lilly have made substantial acquisition deals in the radiopharmaceutical field, with transactions valued at $4.2 billion, $1.75 billion, and $1.4 billion, respectively.

Alpha-9 plans to use the new funding to support ongoing discovery efforts and to expand manufacturing and isotope supply partnerships. The company recently completed the construction of a manufacturing facility in Vancouver, Canada. This move is part of its broader strategy to strengthen its infrastructure and ensure a steady supply of radiopharmaceuticals.

Last month, Telix Pharmaceuticals made a significant move in the radiopharmaceutical manufacturing space by acquiring RLS Radiopharmacies, a US-based radioisotope manufacturer, for $230 million. This acquisition aims to bolster Telix's manufacturing capabilities in the United States.

The venture financing landscape for radiopharmaceuticals has seen remarkable growth, with total deal value in the US rising from $63 million in 2017 to $408 million in 2023, marking approximately a 550% increase, according to GlobalData’s Pharma Intelligence Center Deals Database.

In his announcement, Alpha-9’s CEO David Hirsch emphasized the company’s achievements over the past few years, stating, “Over the last few years, Alpha-9 has built a leading radiopharmaceutical company with a deep pipeline and robust infrastructure.”

Through this significant financial boost, Alpha-9 Oncology is well-positioned to advance its promising pipeline of radiopharmaceutical candidates, potentially offering new therapeutic and diagnostic options for patients with various cancers.