Lilly Signs Radiopharma Deal with Radionetics, Gains Option to Acquire Biotech

Eli Lilly has forged a strategic alliance with Radionetics Oncology, a San Diego-based biotech firm. This collaboration not only provides Eli Lilly with access to an innovative pipeline of cancer radiotherapeutics but also grants them an exclusive option to acquire Radionetics in the future. The agreement involves an upfront payment of $140 million from Eli Lilly, with the potential for a complete acquisition valued at $1 billion. Specific details and the timeline for this potential acquisition remain undisclosed, with both companies stating that it will occur “upon the conclusion of an exercise period.”

Jacob Van Naarden, the president of Lilly Oncology, highlighted that this partnership grants Eli Lilly access to novel GPCR targets and Radionetics' robust discovery capabilities. Radionetics specializes in developing small molecule radiopharmaceuticals, targeting G-protein coupled receptors (GPCRs). GPCRs are a significant family of membrane proteins that facilitate signal transmission from the cell exterior to its interior. According to Radionetics, GPCRs are a vast and largely untapped class of targets for radiopharmaceuticals.

Radionetics leverages an extensive understanding of GPCR biology, combining this knowledge with its platform's exceptional proficiency in designing small molecule drugs. This results in highly selective radiopharmaceutical therapies. The biotech's approach uniquely integrates the strengths of radiopharmaceuticals with the precision of small molecule targeting to novel GPCRs, as stated by COO Brett Ewald.

Radionetics’ innovative GPCR-targeting drug development technology has led to its lead candidate 68Ga-R8760, a gallium-based radioligand conjugate that targets the MC2R protein. This protein is highly expressed in adrenocortical carcinoma, a rare form of cancer. In October 2023, Radionetics initiated the Phase I study of 68Ga-R8760 and announced plans to start clinical programs focusing on breast and lung cancer.

For Eli Lilly, this partnership with Radionetics builds on its recent investments in the radiopharmaceutical sector. In October 2023, Eli Lilly acquired Point Biopharma for $1.4 billion. This acquisition, finalized in December 2023, provided Eli Lilly with PNT2002, Point’s leading asset and an investigational radioligand therapy for metastatic castration-resistant prostate cancer. At the time, Van Naarden emphasized that the acquisition marked the “beginning of our investment in developing multiple meaningful radioligand medicines for hard-to-treat cancers.”

Continuing its expansion in the radiopharmaceutical domain, Eli Lilly entered into a partnership with Aktis Oncology in May 2024. This agreement involved a $60 million upfront payment and included potential royalties amounting to $1.1 billion. The deal provided Eli Lilly with global rights to develop certain radiopharmaceutical therapies and diagnostics discovered by Aktis based on specific targets.

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