Radiopharm Theranostics has banked US$2 million (AU$3.1 million) from American medical giant Lantheus for the sale of two preclinical antibody assets that target and help to diagnose aggressive cancers.
Lantheus, a leading US-based radiopharmaceutical-focused company, is also set to tip in a further US$ 5 million (AU$7.5 million) via a placement at 5c a share – a 42 per cent premium to today’s price – with an option for another US$5 million investment within six months. The placement will be subject to a shareholder meeting next week.
The stage A funding by Lantheus is part of an earlier $70 million fundraising done by Radiopharm in June at the same price to institutional fund managers and sophisticated investors. The stage B funding comes in the form of an option within the next six months at the election of the US financier.
Radiopharm Theranostics chief executive officer and managing director Riccardo Canevari said: “I am delighted with the confidence demonstrated by Lantheus in settling the transfer and development agreement and making this payment ahead of the shareholder meeting later this month. We are well advanced in our strategic planning with Lantheus and the collaboration between our two companies augers well for the future."
The company’s focus is to develop radiopharmaceutical products that transmit low levels of radiation directly to cancerous cells in a patient’s body.
Radiopharmaceuticals are radioisotopes attached to biological molecules, which can target specific organs, tissues, or cells within the human body. The radioactive drugs are increasingly used not only for diagnosis, but also for the therapy of various diseases.
In collaboration with leading universities and research institutes, Radiopharm has developed a diverse pipeline that includes peptides, small molecules and monoclonal antibodies. The innovations target aggressive brain and pancreatic cancers, in addition to lung, breast, prostate and kidney cancers.
Most recently, the company announced human trials for its brain imaging “f18-pivalate” agent, which seeks out a fatty acid that overexpresses itself in tumours and is a lead indicator of brain cancer. Similarly, it started Australian human trials in July in its quest to treat lung cancer, testing the “RAD 204” radioisotope that targets a protein that allows cancer cells to evade the immune system.
During the past 12 months, the radiopharmaceutical sector has seen a surge in activity, with almost US$9 billion (AU$13.8 billion) in buyout transactions. Major players such as Novartis, AstraZeneca, Bristol Myers Squibb and Eli Lilly have been acquiring junior companies, providing considerable evidence of growing interest in the industry.
Research shows that10 million people die annually from lung, breast, bowel and prostate cancer. That makes the current pipeline of specific radiotracers targeting a wide range of cancerous tumours highly relevant.
With the radiopharmaceutical sector at the forefront of cancer detection and therapy and given its success to date, Radiopharm appears poised to continue attracting interest from major players in the lucrative medical industry as it approaches the phase-three trials for several of its products.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By James Pearson
