Novartis has turned to external dealmaking to add another radioligand therapy candidate, licensing a preclinical program from China-based BoomRay Therapeutics for up to $900 million. The package includes an upfront payment plus potential royalties and milestones tied to development, regulatory progress and sales.
The companies did not disclose details of the licensed program. Even so, the transaction shows Novartis is still willing to pay for early radiopharma optionality as competitive pressure rises around one of its most established oncology franchises.
Deal rationale
Shiva Malek, Ph.D., Novartis’ global head of oncology biomedical research, said radioligand therapies remain an important frontier in oncology and described the BoomRay agreement as part of a strategy that combines external innovation with Novartis’ internal research and development capabilities.
For BoomRay, the deal is a validation event as much as a financing one. The Suzhou-based biotech said the agreement marks a significant milestone, though it did not identify which asset Novartis selected. BoomRay’s pipeline includes a brain tumor diagnostic containing fluorine-18 and theranostic programs for solid tumors targeting fibroblast activation protein and Nectin-4.
The lack of disclosure limits any immediate read on scientific fit. Strategically, however, Novartis appears to be broadening a modality platform rather than making a late-stage bet tied to a near-term filing.
Competitive context
The timing comes shortly after Novartis dropped a midstage radioligand asset in July because of disappointing data. At that time, CEO Vas Narasimhan said the company’s commitment to the modality remained “completely unchanged.” This licensing deal is a concrete sign that the setback did not alter capital allocation toward radiopharmaceuticals.
Novartis currently leads the market with Pluvicto for prostate cancer and Lutathera for neuroendocrine tumors. But the competitive picture shifted sharply when Telix Pharmaceuticals announced it would acquire ITM Isotope Technologies for $1.65 billion upfront.
That transaction is aimed primarily at securing ITM’s lead candidate ITM-11, which was recently rejected by the FDA on manufacturing grounds. ITM-11 was submitted for approval in gastroenteropancreatic neuroendocrine tumors, directly challenging Lutathera. ITM plans to refile with the FDA, and establishing a path to approval is a key condition for the Telix acquisition to close.
William Blair analysts said the combined Telix-ITM company could become a “global radiopharmaceutical powerhouse.” Against that backdrop, Novartis’ BoomRay deal looks less like a one-off bolt-on and more like a portfolio-defense move: preserving depth in a modality where leadership now depends not only on approved products, but also on sustained access to new assets.
