Pharmaceutical companies are making significant investments in radiopharmaceuticals, a technology they hope could be the next major breakthrough in cancer treatment, CNBC reports.
Industry giants such as Bristol Myers Squibb, AstraZeneca, and Eli Lilly have collectively spent around $10 billion to acquire or partner with smaller companies developing this innovative approach. Radiopharmaceuticals deliver radiation directly to tumors, offering the potential to treat various types of cancer with fewer side effects than traditional cancer treatments.
Radiopharmaceuticals work by attaching radioactive material to a molecule that targets cancer cells, sparing healthy tissues from radiation damage. This targeted approach has the potential to treat a wide range of cancers, from prostate to neuroendocrine tumors. According to Michael Schmidt, an analyst at Guggenheim Securities, the market for these drugs could grow to at least $5 billion and possibly reach tens of billions if proven effective against more cancers.
The field is still in its early stages, but Novartis has already seen success with two radiopharmaceuticals: Lutathera, approved in 2018 for a rare type of gastrointestinal cancer, and Pluvicto, approved in 2022 for prostate cancer. These drugs are projected to bring in $4 billion in revenue by 2027. Novartis’ achievements have sparked broader interest, leading companies like Eli Lilly and Bristol Myers Squibb to pursue their own acquisitions and partnerships in the radiopharmaceutical space.
Despite its potential, manufacturing radiopharmaceuticals presents challenges. The radioactive materials used in the drugs degrade quickly, meaning treatments must be produced and delivered within days. Companies are working to address these logistical hurdles. Novartis, for example, is investing over $300 million to expand its manufacturing capabilities in the U.S. and ensure that treatments like Pluvicto reach patients on time.
Eli Lilly recently acquired radiopharmaceutical maker Point Biopharma for $1.4 billion, with manufacturing capability being a key factor in the acquisition. Similarly, Bristol Myers Squibb’s $4.1 billion acquisition of RayzeBio was influenced by RayzeBio’s in-house production capabilities.
While radiopharmaceuticals show promise, their potential beyond current applications is still uncertain. Many experimental drugs are in early development, and questions remain about their safety and effectiveness in treating other types of cancer. Still, industry executives are optimistic. AstraZeneca, which acquired Fusion Pharmaceuticals for $2 billion, sees potential in combining radiopharmaceuticals with immunotherapies, a combination already in use with traditional radiation treatments.
For patients like Ronald Coy, who has been battling prostate cancer since 2015, these new treatments are offering hope. After just one Pluvicto treatment, Coy saw significant improvement, making the frequent trips and precautions worth the effort.
