NEW YORK – Ratio Therapeutics said this week that it is out-licensing its somatostatin receptor 2 (SSTR2)-targeted radiopharmaceutical discovery capabilities to Novartis.
Novartis is paying Ratio $745 million in upfront and milestone payments to gain access to Ratio's radioligand therapy discovery and development expertise and its technology platforms, and will use these resources to develop a next-generation SSTR2-targeted radiopharmaceutical for patients with SSTR2-expressing cancers. In the deal, Ratio is also eligible for tiered royalty payments, should this radiopharmaceutical reach the market.
In the early, preclinical stages, Ratio will collaborate with Novartis in selecting an SSTR2-targeting development candidate. After that, Novartis will assume responsibility for developing, manufacturing, and commercializing the drug.
With this deal, Novartis continues to grow its investment in the radiopharmaceutical space. The firm already markets the somatostatin-targeting radiopharmaceutical Lutathera (177Lu-dotatate) as a treatment for patients with SSTR-expressing gastroenteropancreatic neuroendocrine tumors (GEP-NETs). And Novartis also sells Pluvicto (lutetium vipivotide tetraxetan), a radioligand treatment for certain patients with prostate-specific membrane antigen (PSMA)-expressing metastatic castration resistant prostate cancer.
Chestnut Partners acted as Ratio's financial adviser for the licensing deal.