Novartis Agrees to Buy Mariana Oncology for $1 Billion

Novartis on Thursday, May 2, 2024, announced that it has entered an agreement to acquire Watertown, Massachusetts-based Mariana Oncology for $1 billion. Mariana is a preclinical biotechnological company that focuses on developing novel radioligand therapies (RLTs) for the treatment of cancers.

The transaction is expected to boost Novartis’ RLT pipeline as well as expand the company’s research infrastructure and ability to meet clinical supply. Acquiring Mariana will expand Novartis’ portfolio of RLT programs across different cancer types including lung, prostate, and breast cancer.

“The acquisition of Mariana Oncology reflects our commitment to radioligand therapy as one of our company’s key technology platforms and strengthens our leadership in this field,” said Fiona Marshall, President of Biomedical Research at Novartis.

“We are excited to work with the Mariana team to bring forward next-generation RLTs for patients living with cancer and together shape the future of RLT as a pillar for oncology treatment.”

According to the terms of the deal, Novartis will pay $1 billion upfront and an additional $750 million after Mariana completes predetermined milestones. The transaction is still subject to customary closing conditions. 

What are RLTs and how do they work?

RLTs are precision medicines that merge a therapeutic radioisotope (a radioactive particle) with a tumor-targeting molecule (ligand). They bind to specific receptors on the surface of certain types of tumors, releasing a therapeutic radioisotope that causes DNA damage that inhibits cell growth and replication. This potentially triggers the death of the cell. 

“As pioneers in radioligand therapies, we are dedicated to building on our scientific leadership and expanding the breadth of these potentially transformative treatments to a broader range of cancer types,” said Shiva Malek, Global Head of Oncology for Biomedical Research at Novartis.

“This acquisition brings to Novartis phenomenal talent and new capabilities in RLT research that complement our wide-ranging internal efforts to explore novel isotopes, combinations, disease areas, and more.”

Novartis currently has two approved RLTs used in patients with metastatic castration-resistant prostate cancer and certain types of gastroenteropancreatic neuroendocrine tumors. The company’s early and late pipeline also has several programs entering the clinic. This includes a spectrum of studies and assets for prostate cancer.

Novartis is actively searching for new isotopes and combinations with complementary mechanisms of action. The company is also looking for new disease areas that can be treated with RLT.

The acquisition is coming at a time when Novartis is cutting costs and jobs. The company also spun off its generic drug business, Sandoz, last year. Earlier in February, it struck a deal to acquire MorphoSys, a German cancer drugmaker for 2.7 billion euros.