FUSION PHARMACEUTICALS

The radiopharmaceuticals market was valued at USD 5.0 billion in 2023 and is projected to reach USD 16.6 billion by 2032, growing at a CAGR of 10.4%. The market is driven by increasing cancer cases and advancements in diagnostic and therapeutic radiopharmaceuticals. Technetium-99m dominates the market due to its wide diagnostic applications. North America holds the largest market share, while Asia Pacific is the fastest-growing region. Key players include GE Healthcare, Curium Pharma, and Lantheus.

Convergent Therapeutics announced the first patient dosed with CONV01-α in the Phase II CONVERGE-01 trial for PSMA PET-positive mCRPC, and a $40 million Series A extension by Novo Holdings, increasing the total Series A raise to $130 million. Jim Trenkle, PhD, joins the Convergent Board of Directors. The CONVERGE-01 trial is designed to assess CONV01-α's safety and efficacy in mCRPC patients. Richard Messmann, MD, MHS, MSc, joins as Chief Medical Officer, bringing 25+ years of oncology drug development experience.

The drug and biotech sector has outperformed the broader market, driven by new drug launches, pipeline successes, and increased M&A activity. Eli Lilly's obesity drugs have been particularly successful. Despite headwinds like pipeline setbacks and economic uncertainty, the sector has seen a surge in investments. Five large drugmakers—Pfizer, Eli Lilly, AstraZeneca, Bayer, and Sanofi—are recommended for portfolio growth, with strong financials and robust pipelines.

First patient dosed with CONV01-α in Phase II trial for metastatic castration-resistant prostate cancer. Richard Messmann, MD appointed as Chief Medical Officer. Novo Holdings invests $40 million in Series A extension to advance radiopharmaceutical development at Convergent Therapeutics.

Drugmakers like Bristol Myers Squibb, AstraZeneca, and Eli Lilly invest billions in radiopharmaceuticals, which deliver radiation directly to tumors. These drugs, in development for various cancers, attach radioactive material to targeting molecules, sparing healthy cells. Novartis' successes with Lutathera and Pluvicto have spurred interest, but manufacturing and logistics remain complex. The market potential ranges from $5 billion to tens of billions, depending on efficacy across cancer types.

FPI-2265, a radionuclide targeting prostate specific membrane antigen (PSMA) for metastatic prostate cancer, is expected to generate $202 mn in annual revenue by 2035 in the US. Fusion Pharmaceuticals, a subsidiary of AstraZeneca, develops this intravenous therapy. The risk-adjusted NPV (rNPV) model, which considers drug failure risk, is used for valuation.