Alpha-9 Oncology has secured $175 million in Series C financing to propel its radiopharmaceutical pipeline forward. The funding will be used to advance several preclinical candidates into clinical trials and to expand the company's research and development efforts.
Advancing Preclinical Programs
Based in Vancouver, Canada, Alpha-9 Oncology plans to use the funding to advance its pipeline of preclinical candidates to the "clinic-ready" stage. While the company has not specified which assets will be prioritized, their preclinical programs target several key receptors, including melanocortin 1 receptor (MC1R), prostate-specific membrane antigen (PSMA), gastrin-releasing peptide receptor (GRPR), C-X-C chemokine receptor type 4 (CXCR4), and bradykinin receptor B1 (B1R).
A9-3202: Targeting Melanoma with MC1R
In May 2024, Alpha-9 announced the dosing of the first patient in its Phase I study for A9-3202, a peptide-based radiopharmaceutical targeting MC1R. This trial aims to evaluate the tumor uptake and distribution of A9-3202 in normal tissue among patients with locally advanced or metastatic melanoma. Melanoma is a serious form of skin cancer, and new imaging techniques are needed to improve diagnosis and treatment planning.
Radiopharma Investment Surge
This financing round follows a significant increase in investment in the radiopharmaceutical sector. Earlier this month, Aktis Oncology also raised $175 million to support the development of its radiopharmaceuticals, including a Nectin-4-targeted miniprotein radioconjugate. Major pharmaceutical companies like Bristol Myers Squibb (BMS), Novartis, and Eli Lilly have also made substantial investments in the field through acquisitions, signaling the growing importance of radiopharmaceuticals in cancer treatment.
Funding Details and Infrastructure Expansion
Alpha-9’s Series C was co-led by Lightspeed Venture Partners and Ascenta Capital. This round builds on a $75 million Series B in December 2022 and an $8.9 million Series A in 2021, following the company's spin-out from the University of British Columbia three years prior. The funding will also support ongoing investments in discovery capabilities and the expansion of manufacturing and isotope supply partnerships. Alpha-9 recently completed the construction of a manufacturing facility in Vancouver, Canada, to support its growing pipeline.
Industry Growth
Venture financing for radiopharmaceutical drugs has seen a substantial increase, rising approximately 550% from $63 million in 2017 to $408 million in 2023 year-to-date, according to GlobalData’s Pharma Intelligence Center Deals Database. This growth reflects the increasing recognition of radiopharmaceuticals as a promising therapeutic modality.
Alpha-9’s CEO, David Hirsch, stated that the company has built a leading radiopharmaceutical company with a deep pipeline and robust infrastructure over the last few years.
