Novartis deepens radiopharma presence with $1B Mariana acquisition

In a strategic move, Novartis has secured a $1 billion upfront acquisition of Mariana Oncology, a company established in 2021 with funding from Atlas Venture, Access Biotechnology, RA Capital Management, and early investment from Eli Lilly. This deal highlights Novartis' ambition to broaden its radiopharmaceutical portfolio, which already includes the radioligand therapies Pluvicto and Lutathera.

The acquisition is particularly significant due to Mariana Oncology's focus on actinium, a radioactive metallic element distinct from the lutetium used in Novartis' existing therapies. Shiva Malek, Novartis' executive vice president and head of oncology research, emphasized the untapped potential of this new platform, underscoring its promise for patient treatment advancements.

The merger between Novartis and Mariana Oncology was initiated during the J.P. Morgan Healthcare Conference in January. Despite raising $175 million in a Series B funding round late last year, Mariana Oncology found itself in an enviable position of attracting significant interest from potential buyers, including industry giants Lilly and Bristol Myers Squibb.

According to Mariana CEO Simon Read, the acquisition was driven by strategic alignment rather than financial necessity. Novartis' robust resources will enable Mariana to accelerate its research and expand its pipeline, which includes MC-339, a promising treatment under development for small cell lung cancer. The deal also encompasses $750 million in milestone payments, though specifics on these targets remain undisclosed.

The Federal Trade Commission has already cleared the acquisition, and the finalization is imminent. Both companies' pipelines, though focused on radiopharmaceuticals, do not overlap. Novartis' approved drugs, Pluvicto and Lutathera, target prostate cancer and neuroendocrine tumors respectively, whereas Mariana's portfolio addresses a broader range of tumor types.

While competitors like Lilly are concentrating on manufacturing enhancements, Novartis is leveraging Mariana's innovative edge. Novartis has faced its share of challenges in bringing Pluvicto and Lutathera to market, but the acquisition of Mariana is seen as a complementary fit, not merely a logistical expansion. Although Mariana has some manufacturing capabilities, the focus will likely remain on early-stage research rather than production.

Novartis plans a "light touch integration" approach, meaning Mariana's experienced staff will continue their work without significant changes. Malek confirmed that retaining talent was a key motive for the acquisition, stating that there are no immediate plans for structural changes within Mariana.

Simon Read, the CEO of Mariana, will remain in a leadership role, although his exact title is yet to be defined. Bernard Lambert, Mariana’s Chief Technology Officer, leads a team with extensive expertise in radiopharmaceutical manufacturing, based in their Watertown, Massachusetts facility. This facility will continue to focus on early clinical development supply.

A joint steering committee will be established to guide the new unit, maintaining Mariana's biotech model. This acquisition is the second radioligand-related deal for Novartis in a short time, following a $180 million licensing agreement with PeptiDream. Malek noted that these acquisitions aim to broaden the range and impact of their treatment targets.

Looking forward, Novartis envisions potential combination therapies involving radioligands and traditional drugs. This strategy aligns with their recent acquisition of rights to Arvinas’ phase 3-ready protein degrader for prostate cancer, a $150 million deal made in April. Malek indicated that Novartis will continue to pursue scientific advancements to maximize patient benefits, with no definitive end in sight for their deal-making activities.