NorthStar Medical secures US$185M to expand radiopharmaceutical manufacturing in Wisconsin

USA—NorthStar Medical Technologies secured up to US$185 million in growth financing to expand isotope production and contract manufacturing at its Beloit, Wisconsin, campus.

The radiopharmaceutical supplier and contract development and manufacturing organization (CDMO) said Hercules Capital will provide the multi-year growth capital facility.

NorthStar will receive US$100 million initially to accelerate investments in radioisotope production and clinical manufacturing.

Funding to expand manufacturing capacity

The financing comes as NorthStar expands its role in the radiopharmaceutical supply chain, particularly for actinium 225 (Ac 225), an alpha-emitting radioisotope used to develop targeted cancer therapies.

NorthStar said its customer base includes several large pharmaceutical companies developing Ac 225-based treatments.

The company currently serves more than 30 customers across isotope supply and CDMO services, including biotechnology companies and pharmaceutical manufacturers in North America, Asia, Australia and Europe.

The company plans to use the new funding to expand its CDMO operations at the Beloit campus.

NorthStar currently operates three buildings at the site and plans to add manufacturing suites supporting early-stage, late-stage, and commercial production.

The investment will also support further development of its Ac 225 production capabilities.

NorthStar currently produces Ac-225 and copper-67, while its CDMO operations can support programs involving radioisotopes that it does not manufacture, including lutetium-177 and copper-64.

Actinium 225 supply remains a focus

Demand for Ac-225 has increased as pharmaceutical companies develop next-generation radiopharmaceutical therapies.

The isotope emits alpha particles that can deliver high-energy radiation to targeted cells, making it an important component of research into precision cancer treatments.

However, limited isotope availability has created supply challenges for developers.

Drugmakers and radioisotope suppliers have therefore invested in additional production capacity and supply chain infrastructure.

NorthStar is seeking to address part of this challenge by locating isotope production and CDMO services at the same campus.

Frank Scholz, Ph.D., NorthStar’s president and CEO, said the arrangement can reduce delays between isotope production and its use in manufacturing.

Ac-225 has a half-life of about 10 days, meaning the amount of usable material declines as it decays.

Keeping production and manufacturing operations in the same location can therefore reduce transportation and processing time.

Capacity expansion follows production milestone

The financing follows a significant expansion year for NorthStar.

In January, the company announced the first commercial-scale production of no carrier-added Ac-225 using electron accelerator technology.

NorthStar also expanded its agreement with Convergent Therapeutics to support late-stage studies and potential commercial demand for CONV01 α, an investigational radiopharmaceutical for metastatic castration-resistant prostate cancer.

The company plans to transition its Beloit campus to a high-capacity production line for no-carrier-added Ac-225 by year-end.

The additional capacity is expected to support growing demand from pharmaceutical and biotechnology companies developing Ac-225-based therapies.

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