Novartis is adding another radiopharmaceutical program to its collection, penning a deal worth $745 million in biobucks for rights to a cancer candidate from Ratio Therapeutics.
Boston-based biotech Ratio and Novartis will work together researching and selecting a somatostatin receptor 2 (SSTR2)-targeting development candidate, according to a Nov. 18 release. From there, Novartis will take on the rest of the responsibilities around the asset, including further development and potential commercialization activities.
The worldwide licensing agreement will leverage Ratio’s radioligand tech platforms, which are designed to develop fit-for-purpose radiopharmaceuticals for therapy and imaging.
In turn, Ratio is in line to receive combined upfront and possible milestone payments up to $745 million, plus royalty payments, according to the terms of the deal.
Together, the companies hope to develop a best-in-class therapy against SSTR2-expressing tumors, Ratio CEO Jack Hoppin, Ph.D., said in the release.
The partners will aim to bring new therapies to market for patients with difficult-to-treat cancers, according to Fiona Marshall, Ph.D., Novartis’ president of biomedical research.
SSTR2 is a protein expressed in many tumors, including neuroendocrine tumors, small cell lung carcinoma, meningiomas, breast cancer and colorectal cancer.
Radiopharmaceuticals are a main pillar of Novartis’ oncology strategy, with the Swiss drugmaker already touting approved drugs Lutathera for certain gastroenteropancreatic neuroendocrine tumors and Pluvicto for prostate cancer. The Big Pharma has inked pacts with other radiopharmaceutical biotechs, such as Bicycle Therapeutics and 3B Pharmaceuticals.
As for Ratio, the company’s most advanced candidate is a radiopharmaceutical designed to treat soft tissue sarcoma. The asset is slated to enter clinical testing next year.