Novartis to acquire Mariana Oncology in radiopharma expansion

Novartis has announced a significant expansion of its radiopharmaceutical drug pipeline by agreeing to acquire biotechnology company Mariana Oncology for $1 billion. This acquisition will potentially include an additional $750 million if Mariana meets certain developmental milestones. Mariana specializes in targeted radiation therapies and offers Novartis several promising drug programs, including a candidate currently under evaluation for treating small cell lung cancer.

Novartis is already a strong player in the radiopharmaceutical market with two approved drugs, Pluvicto and Lutathera. These drugs have achieved notable success in treating specific types of prostate and gut tumors, enhancing Novartis's reputation in the field. The effectiveness and high demand for these treatments have led to a surge in acquisitions by major pharmaceutical companies. For instance, AstraZeneca is set to acquire Fusion Pharmaceuticals for $2.4 billion, following similar moves by Bristol Myers Squibb and Eli Lilly, which acquired RayzeBio for $4.1 billion and Point Biopharma for $1.4 billion, respectively.

Radiopharmaceuticals offer a promising treatment option by delivering radiation directly to tumors, thus minimizing the side effects associated with traditional radiation therapies. However, the manufacturing process for these drugs is complex, involving the combination of a radioactive isotope such as lutetium or actinium with a targeting compound. Novartis's experience with Pluvicto and Lutathera underscores these challenges, yet their success has firmly established these drugs as important treatments for certain cancers.

According to Jefferies analyst Andrew Tsai, the wave of acquisitions signals that major pharmaceutical companies see the commercial viability of radiopharmaceuticals for treating difficult cancers. Tsai believes that these drugs could potentially become first-line therapies, making them a crucial investment focus for the industry in the coming years.

Mariana Oncology, incubated under RA Capital's RAVen program, has generated significant interest and funding, raising $250 million through two financing rounds in 2021 and the previous year. The company's lead candidate, MC-339, is a radiopharmaceutical based on actinium aimed at treating small cell lung cancer.

Shiva Malek, Novartis's global head of oncology for biomedical research, expressed enthusiasm for the acquisition. Malek highlighted that the addition of Mariana’s expertise and innovative capabilities in radioligand therapy research would complement Novartis's ongoing efforts to explore novel isotopes, combinations, and new disease areas. This strategic move aims to strengthen Novartis's position in the burgeoning field of radiopharmaceuticals, offering new avenues for research and potential treatments.

Overall, the acquisition represents a significant step for Novartis in its commitment to developing advanced treatments for cancer. By incorporating Mariana Oncology's innovative pipeline, Novartis aims to broaden its portfolio and continue its leadership in the specialized field of radiopharmaceuticals.