Novartis licenses preclinical radioligand asset from China’s BoomRay in US$900M global deal

CHINA — Chinese clinical-stage biotech firm BoomRay Pharmaceuticals has entered into an exclusive global licensing deal with Novartis Pharma for an undisclosed preclinical radioligand therapy (RLT) asset, with a potential value of up to US$900 million.

Under the agreement, BoomRay will receive an upfront payment, followed by potential development, regulatory and sales milestone payments.

The company will also be eligible for royalties on future global net sales of products developed from the licensed asset.

The agreement brings together BoomRay’s expertise in radioligand therapy development and Novartis’ global capabilities in radiopharmaceutical research and commercialisation.

BoomRay develops radioligand therapies for precision oncology, covering activities from candidate discovery and radiochemistry to clinical translation.

Its pipeline includes radiopharmaceutical candidates designed to address unmet medical needs in cancer treatment.

BoomRay CEO Bo Shan said the agreement represents an important milestone for the company and validates its drug discovery and development capabilities.

“We believe this agreement with Novartis will unlock the full potential of this asset and accelerate its path to patients worldwide,” Shan said.

Novartis expands RLT portfolio

Shiva Malek, global head of Oncology Biomedical Research at Novartis, said radioligand therapies represent an important area of development in oncology.

“At Novartis, we remain focused on driving breakthrough science that can expand their potential for patients,” Malek said.

She added that the agreement with BoomRay complements Novartis’ expanding radioligand therapy portfolio and supports its strategy of combining external innovation with its research and development capabilities.

“We look forward to advancing this promising programme and helping to bring new treatment options to patients around the world,” Malek said.

BFC Group served as financial adviser to BoomRay for the transaction.

Novartis’ radiopharmaceutical strategy

The agreement adds to Novartis’ activity in the radiopharmaceutical sector.

In May 2024, the company acquired Mariana Oncology for an upfront payment of US$1 billion, with up to an additional US$750 million tied to achieving specified milestones.

Radioligand therapies combine a targeting molecule with a radioactive component to deliver radiation directly to cancer cells.

Novartis has been developing and commercialising radioligand therapies as part of its oncology portfolio.

BoomRay operates an integrated research and development platform focused on radiopharmaceutical discovery and development.

The company’s work spans early-stage candidate identification, radiochemistry, and the advancement of potential therapies towards clinical development.

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