Novartis is looking to build on its radiopharma research machinery.
The maker of Lutathera and Pluvicto has expanded its longstanding peptide discovery deal with PeptiDream to bolster their work on peptides for conjugation with radionuclide compounds.
The Japanese biotech, which has a long list of drug development partners, will get $180 million upfront and is eligible for up to $2.71 billion in milestones, as well as tiered royalties on net sales of any potential products, according to a Tuesday release.
PeptiDream will use its so-called Peptide Discovery Platform System to identify new macrocyclic peptide candidates against targets selected by Novartis, which can then be conjugated with radionuclides or other compounds for both therapeutic and diagnostic use. Novartis’ Lutathera and Pluvicto also comprise peptides conjugated with radionuclides.
The biotech’s shares rose 24% to 2,022 Japanese yen ($12.89) Tuesday.
Novartis and PeptiDream’s relationship dates back to an initial discovery pact in August 2010, with Novartis later licensing the peptide discovery system in 2015. The companies reaffirmed their collaboration in 2019, with a focus on identifying peptides for potential conjugation with radionuclides or small molecules. The financial terms of the deal were undisclosed.
With the latest agreement, Novartis is expanding its collaboration with a new set of undisclosed targets, a spokesperson said in an email statement. “The goal is to continue to work to broaden the scope and breadth of RLTs.”
So far, Novartis and PeptiDream’s efforts have yielded two radioligand therapies (RLTs). The first asset, [177Lu]Lu-FF58, comprises a small molecule targeting alpha-v beta-5 integrin joined with a lutetium isotope and is in Phase 1 for advanced solid tumors. The second, unnamed asset is also for solid tumors and entered IND-enabling studies in October.
PeptiDream’s peptide discovery system has been at the center of 11 licensing deals with large pharma players that include Bristol Myers Squibb, Eli Lilly and Roche’s Genentech. In 2020, the biotech teamed up on peptide-radioisotope conjugate discovery with RayzeBio, which was acquired last year by Bristol Myers for $4.1 billion.
Novartis’ Lutathera is approved for certain gastroenteropancreatic neuroendocrine tumors and Pluvicto for PSMA-positive metastatic castration-resistant prostate cancer. Last year, Pluvicto sales rocketed 262% from 2022 to $980 million, with the product forecast to exceed $2 billion in peak sales. Sales of Lutathera in 2023 rose 28% to $605 million.
Editor’s note: This article was updated to add a comment from Novartis.