Radiopharmaceuticals are gaining market traction as bio/pharma firms strike drug-development deals and CDMOs expand capacity in this niche but growing sector.
Radiopharmaceuticals are emerging as a key growth sector in the bio/pharmaceutical industry. Although niche, this market is gaining attention as major pharmaceutical companies and specialized contract development and manufacturing organizations (CDMOs) expand their production capabilities and enter billion-dollar partnerships.
Market Growth and Potential
The global radiopharmaceuticals market was valued at $5.97 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.2%, reaching $13.67 billion by 2033. The primary drivers of this growth include increased applications in cancer treatment, precision medicine, and diagnostic imaging.
Several large pharmaceutical companies are making significant investments to strengthen their foothold in the radiopharmaceutical space. Below are some of the major moves shaping the industry.
Novartis Expands Manufacturing and R&D
Novartis is leading the radiopharmaceutical sector with two approved radioligand therapies: Pluvicto (for metastatic castration-resistant prostate cancer) and Lutathera (for certain gastroenteropancreatic neuroendocrine tumors).
In September 2024, Novartis broke ground on two new radioligand therapy (RLT) manufacturing facilities in Indianapolis, Indiana, and Carlsbad, California. These sites will enhance the company’s capability to produce radioisotopes and support future expansion.
On the research front, Novartis acquired Mariana Oncology in May 2024 for up to $1.75 billion. This deal includes MC-339, an actinium-based RLT being developed for small-cell lung cancer. In November 2024, Novartis also signed a $745-million agreement with Ratio Therapeutics to develop an SSTR2-targeting radiotherapeutic candidate.
Bristol-Myers Squibb’s Strategic Acquisition
In February 2024, Bristol-Myers Squibb (BMS) completed a $4.1-billion acquisition of RayzeBio, a leader in actinium-based radiopharmaceutical therapeutics. The acquisition strengthens BMS’s pipeline, including lead candidate RYZ101, a Phase III therapy for small-cell lung cancer and neuroendocrine tumors.
BMS also acquired RayzeBio’s new radiopharmaceutical manufacturing facility in Indianapolis, expected to begin GMP production in 2024.
AstraZeneca Enters the Market
AstraZeneca made a significant move in June 2024 by acquiring Fusion Pharmaceuticals for $2.4 billion. Fusion develops radioconjugates that deliver targeted radioactive isotopes to cancer cells. Its lead drug, FPI-2265, is in Phase II trials for metastatic castration-resistant prostate cancer.
This acquisition includes Fusion’s research and manufacturing facilities, giving AstraZeneca a foothold in radiopharmaceuticals.
Sanofi’s Investment in Orano Med
Sanofi has taken a unique approach by partnering with Orano Med, a radiopharmaceutical developer specializing in lead-212 (212Pb) alpha-emitting isotopes. In October 2024, Sanofi announced a $325-million equity investment, securing a 16% stake in Orano Med’s new entity valued at $2.1 billion.
This follows Sanofi’s exclusive licensing deal with RadioMedix and Orano Med to develop AlphaMedix (212Pb-dotamtate) for treating neuroendocrine tumors.
Eli Lilly’s Billion-Dollar Deals
Eli Lilly has aggressively expanded in radiopharmaceuticals with multiple deals in 2024:
- July 2024: A $1.1-billion deal with Radionetics Oncology to acquire rights to GPCR-targeted radiopharmaceuticals.
- May 2024: A $1.1-billion collaboration with Aktis Oncology for radiopharmaceutical R&D.
- December 2023: A $1.4-billion acquisition of Point Biopharma, adding two late-stage radioligand therapies and a 180,000-square-foot manufacturing campus in Indianapolis.
Smaller Players Making an Impact
While big pharma dominates, smaller companies are also driving innovation and expanding capacity.
Orano Med’s Expansion
In November 2024, Orano Med began constructing a $262-million facility in France to produce thorium-228, a precursor to lead-212. This site will help produce 100,000 doses of lead-212 radiopharmaceuticals annually by 2027. Additionally, Orano Med is building a $31-million lead-212 production lab in Onnaing, France.
Telix Pharmaceuticals Spins Off Rhine Pharma
Telix Pharmaceuticals, an Australian-based biotech, recently announced the spin-off of Rhine Pharma, a dedicated radiopharmaceutical company. Rhine Pharma will focus on developing next-generation radiopharmaceuticals while leveraging Telix’s research expertise.
Future Outlook
The radiopharmaceutical industry is evolving rapidly. With major investments, acquisitions, and new manufacturing sites, the sector is positioned for strong growth. As radiopharmaceuticals become more integrated into cancer therapy and diagnostics, this once-niche market is emerging as a major force in the bio/pharmaceutical landscape.
Radiopharmaceuticals
Radiopharmaceuticals
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