BMS Expands Radiopharmaceutical Portfolio with $1.3B Prostate Cancer Drug Deal

Bristol Myers Squibb (BMS) has significantly bolstered its presence in the rapidly growing radiopharmaceutical therapy (RPT) space through a $1.3 billion deal for a promising prostate cancer drug. The agreement, executed via BMS's recently acquired RayzeBio unit, marks a strategic move to capitalize on the burgeoning field of targeted radiation treatments.

RayzeBio Acquires Rights to OncoACP3

RayzeBio, a subsidiary of BMS following a $4.1 billion acquisition in late 2023, has secured the rights to OncoACP3, a phase 1-stage radiopharmaceutical therapy and diagnostic for prostate cancer. The deal, struck with Swiss biotech Philochem, involves an upfront payment of $350 million, with the potential for up to $1 billion in additional development, regulatory, and commercial milestones.

OncoACP3 is a small-molecule ligand designed to target acid phosphatase 3 (ACP3), a phosphatase highly expressed in prostate cancer cells. The drug is currently being evaluated in a phase 1 trial as a PET radiotracer for diagnostic imaging of prostate cancer, with initial data showing promising results in tumor uptake and minimal healthy tissue involvement.

Expanding the Radiopharmaceutical Pipeline

The acquisition of OncoACP3 represents a significant expansion of BMS's radiopharmaceutical pipeline, building on the company's existing expertise in actinium-based RPT development. Unlike some competitors in the space, such as Novartis with its lutetium-based therapies Lutathera and Pluvicto, RayzeBio's platform focuses on the alpha-emitting isotope actinium-225.

Ben Hickey, President of RayzeBio, emphasized the strategic importance of the deal, stating, "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."

The radiopharmaceutical market is projected to experience substantial growth, with estimates suggesting an increase from $9.1 billion in 2023 to $26.5 billion by 2031. This expansion is driven by advancements in targeted radiation therapies and an increasing focus on personalized medicine in oncology.