Bristol Myers Squibb, via its RayzeBio unit, is handing $350 million in upfront cash for a phase 1-stage radiopharmaceutical therapy and diagnostic for prostate cancer.
The deal centers around OncoACP3, a small-molecule ligand with high affinity for acid phosphatase 3 (ACP3), a phosphatase that is expressed in prostate cancer. The drug has been developed by Swiss biotech Philochem, which is assessing the asset in a phase 1 trial as a PET radiotracer for the diagnostic imaging of prostate cancer.
Initial data from the first cohort of patients in this trial have been promising, “displaying selective tumour uptake and long residence time with minimal healthy tissue uptake,” Philochem explained in a June 10 post-market release. The Otelfingen, Switzerland-based company is currently gearing up to request FDA permission to launch a phase 1 study of OncoACP3 as a therapeutic drug.
As well as the $350 million upfront fee, the deal will mean Philochem is eligible for up to $1 billion in development, regulatory and commercial milestones on top of mid single- to low double-digit royalties on sales of the drug should it make it to market as either a cancer therapy or diagnostic agent.
BMS entered the radiopharma space via its $4.1 billion buyout of RayzeBio at the end of 2023. Unlike Novartis’ approved radiopharma therapies Lutathera and Pluvicto, which use a beta-emitting isotope called lutetium, RayzeBio’s platform is based on an alpha-emitting isotope called actinium-225.
“OncoACP3, with its initial encouraging safety profile, provides a differentiated entry for Bristol Myers Squibb and RayzeBio into the prostate cancer arena, building on our leadership in actinium-based RPT development,” RayzeBio President Ben Hickey said in yesterday’s release.
“This collaboration with Philochem enhances our leadership in the rapidly advancing radiopharmaceuticals space, consistent with our strategy to bring forward best-in-class RPT candidates,” Hickey added.
Philochem—which is a subsidiary of Italy’s Philogen Group—also has a couple of clinical-stage therapeutic and diagnostic candidates that are focused on fibroblast activation protein, which is overexpressed in more than 90% of epithelial cancers.
The radiopharma field is expected to grow from $9.1 billion in 2023 to $26.5 billion in 2031, according to a January report by Insight Partners. This year has already seen some intriguing radiopharma readouts, including “promising efficacy” for Telix Pharmaceuticals’ radiation therapy for brain cancer and ITM Isotope Technologies’ stomach and pancreatic cancer tumor candidate besting the standard of care while unable to prove a statistically significant benefit in median overall survival.