Novartis spends $1B to acquire radioligand therapy firm Mariana

Novartis is significantly expanding its presence in radioligand therapy (RLT) with a new $1 billion acquisition of Mariana Oncology. Mariana's leading actinium-based candidate, MC-339, is on the verge of entering clinical trials. This acquisition follows another recent deal within the same week, where Novartis reached an agreement with PeptiDream, emphasizing its commitment to advancing its RLT portfolio and maintaining its leadership in the field. Fiona Marshall, the president of biomedical research at Novartis, stated that this acquisition underscores their dedication to RLT as a core technological platform of the company.

Interest in the radiopharmaceuticals industry has been growing, as shown by numerous recent acquisitions that highlight the importance of securing a stable supply of radioactive isotopes for these therapies. In March, AstraZeneca agreed to acquire Fusion Pharmaceuticals for approximately $2 billion, which not only provided them access to several experimental therapies but also enhanced their manufacturing and supply chain capabilities in actinium-based radioconjugates. Other notable transactions include Bristol Myers Squibb’s $4.1 billion acquisition of RayzeBio and Eli Lilly’s $1.4 billion purchase of POINT Biopharma.

Novartis indicated that the acquisition of Mariana Oncology would enhance its research infrastructure and clinical supply capabilities. Mariana's RLT programs cover a broad spectrum of solid tumor indications, including breast, prostate, and lung cancer, from lead optimization to early development stages. Specifically, MC-339 is being investigated for the treatment of small-cell lung cancer. According to the deal's terms, Novartis will make an initial payment of $1 billion, with Mariana potentially receiving up to an additional $750 million upon reaching specific milestones. Mariana had previously raised $175 million in a Series B financing round last year.

Currently, Novartis markets two prominent radioligands: Pluvicto (lutetium 177 vipivotide tetraxetan) for advanced prostate cancer and Lutathera (lutetium Lu 177 dotatate) for somatostatin receptor-positive gastroenteropancreatic neuroendocrine tumors. Pluvicto has become Novartis's fastest-growing drug, with sales tripling to $980 million in 2023.

The radioligand therapy sector is witnessing increased interest among pharmaceutical companies, and Novartis's recent moves highlight its strategic focus on strengthening its position in this promising area.