Rarely does the top search result for radiopharmaceuticals link to the International Atomic Energy Agency (IAEA). However, in this field, the IAEA stands out as a prolific publisher of reports and explanatory pieces. This aligns with increasing investment in therapies using radioactive isotopes to treat cancers and other medical conditions.
Last week marked significant milestones in the radiopharmaceutical sector, with major funding rounds and M&A deals.
On the funding front, Isotope Technologies Munich, based in Germany, secured over $200 million in an equity round led by Temasek Holdings. The funds will support the potential market launch of a treatment for neuroendocrine tumors, currently in late-stage clinical trials, and expand its manufacturing capabilities and pipeline of medical isotopes for cancer treatment.
In M&A news, AstraZeneca’s subsidiary completed its $2.1 billion acquisition of Fusion Pharmaceuticals, a developer of oncology radiopharmaceuticals, with an additional $300 million in potential milestone payments. Founded in 2014 and based in Hamilton, Ontario, Fusion went public four years ago.
The radiopharmaceutical sector has seen a growing pipeline of recently funded companies. According to Crunchbase data, at least 12 private companies in this space have raised nearly $1.3 billion in venture or growth funding over the past two years. Notably, six of these companies were founded less than four years ago, with a majority of the funding coming in the last couple of years.
The enthusiasm from startup investors is driven by the high valuations from public investors and large-cap acquirers. Fusion Pharmaceuticals’ acquisition wasn’t the only multibillion-dollar M&A deal recently. In February, Bristol-Myers Squibb completed its $4.1 billion acquisition of Rayze Bio, a radiopharmaceutical developer for tumor treatment. San Diego-based Rayze had gone public just five months earlier.
Investors are also attracted by promising clinical trial results for treatments targeting some of humanity’s most challenging diseases.
For a comprehensive list of radiopharmaceutical-related startups funded in the past two years, refer to the related Crunchbase Pro list.
