Curasight well-placed in hot radiopharma sector
The radiopharmaceutical sector is gaining considerable momentum as companies increasingly recognize its potential to offer highly targeted cancer treatments. This has led to a surge in investments, acquisitions, and partnerships, positioning radiopharmacy as one of the hottest areas in oncology. Curasight, a Danish clinical-stage biotech company specializing in innovative precision radionuclide diagnostics and therapy, is well-placed to benefit from this growth.
Curasights’s theranostic approach uses its proprietary platform, which leverages the urokinase plasminogen activator receptor (uPAR), a key biomarker for cancer aggressiveness. The company’s development pipeline is centered around two candidates: uTRACE for imaging and uTREAT, which are designed for targeted radiotherapy.
Using PET imaging with radioligand therapy to identify and treat aggressive tumors with high specificity is particularly promising for cancers that are difficult to manage with conventional treatments, such as glioblastoma.
To support and accelerate its development activities, Curasight recently completed the first steps in a DKK 120 million capital raise. The issue of units, which included two series of warrants, was heavily oversubscribed by 17,299 percent—which could be interpreted as an indication of the interest in the company and the sector.
The Rising Momentum in Radiopharmaceuticals
Radiopharmaceuticals were first introduced in the 1940s but were long considered a last-resort option due to safety concerns with earlier therapies. Recent developments, however, have addressed these issues by enhancing the precision of radioligands, allowing them to effectively target tumors while minimizing damage to surrounding healthy tissues. The success of drugs such as Algetas (acquired by Bayer) Xofigo, Advanced Accelerator Applications’ (acquired by Novartis) Lutathera, and Endocytes (acquired by Novartis) Pluvicto has further validated this approach and spurred a wave of investment in the field.
According to a recent report by Nature, the radiopharmaceutical market is expected to grow substantially, with global sales potentially reaching 30 billion dollars by the end of the decade. This boom has led to high-value acquisitions as major pharmaceutical companies seek to expand their oncology portfolios by acquiring radiopharma assets.
High-profile deals in radiopharma
Bristol Mystol Squibb, for instance, acquired RayzeBio for USD 4.1 billion, providing a strategic foothold in the radiopharma market.
Eli Lilly has been particularly active in this space, demonstrating its commitment through multiple acquisitions and partnerships. It purchased Point Biopharma for USD 1.4 billion, a company specializing in radioligand therapies for prostate and neuroendocrine cancers. Additionally, Eli Lilly has secured an option to buy Radionetics Oncology for USD 1 billion and recently entered a deal with Aktis Oncology valued at up to USD 1.1 billion, reflecting its ambitions to build a comprehensive pipeline of radioligand therapies.
Novartis is set to build on Pluvicto’s success. It recently acquired Mariana Oncology in a deal with a USD 1 billion upfront payment and up to USD 750 million in milestone payments. AstraZeneca has also entered the radiopharmaceutical sector through its USD 2.4 billion acquisition of Fusion Pharmaceuticals.
Looking to get rapid proof-of-concept
For a smaller player like Curasight, these high-profile acquisitions indicate the increasing strategic value of radiopharmaceutical assets and the potential for lucrative partnerships or buyouts. In May 2023, Curasight secured a first partnership with radiopharma leader Curium Inc. with uTRACE in prostate cancer – a part of the diagnostics pipeline. In their analyst coverage, SEB estimated the total value of this deal for Curasight to be USD 3.8 billion, and the company has stated that under the agreement, they could receive approximately USD 70 million in milestone payments.
In addition to an ongoing phase II trial with uTRACE in prostate cancer, Curasight is currently preparing for a relatively small trial in an initial indication with uTREAT. This quick route to proof-of-concept with the candidate will then be followed by a basket trial in potentially five different cancer indications to further validate uTREAT’s broad applicability.
To fund this crucial step, the company is looking to raise up to DKK 57 million through the series TO2 warrants. The warrants’ exercise period will run from November 21 to December 5, 2024.
Potential high-value target
The rapid expansion of the radiopharmaceutical market reflects a broader trend in oncology, where precision medicine and targeted therapies are emerging as the new standard of care. With several major players, including Bristol Myers Squibb, Eli Lilly, Novartis, and AstraZeneca, BMS making significant investments, radiopharmaceuticals appear to be poised to become a core component of future oncology treatment paradigms.
As major pharmaceutical companies continue to pursue cutting-edge radiopharma technologies, Curasight’s ability to target aggressive cancers positions it as a highly attractive clinical-stage asset within the sector.
The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.
