The biopharmaceutical landscape is witnessing a seismic shift towards radiopharmaceuticals, with major players like Eli Lilly making substantial investments, exemplified by its $1.4 billion acquisition of Point Biopharma. However, as the industry delves deeper into the radiopharmaceutical space, it is encountering a unique set of manufacturing challenges.
Seizing this opportunity to leverage its expertise, RLS Radiopharmacies, a Florida-based company, is embarking on a transformative journey. Known for its network of 31 radiopharmacies across 18 states, RLS is diversifying its operations by offering contract development and manufacturing services.
RLS will allocate approximately 10,000 square feet at eight of its 31 facilities for the development and manufacturing of radiotherapies. These CDMO (Contract Development and Manufacturing Organization) facilities are strategically located near major population centers across the United States, with the aim of having all eight sites fully operational by the end of the first quarter of the coming year.
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Radiopharmaceutical drugs possess an incredibly short shelf-life and require customized production, resulting in a growing demand for regional manufacturing and same-day delivery services, according to RLS.
Trey Bankston, RLS’s Chief Operating Officer, emphasized the historical advantage of proximity to end-users, noting that radiopharmacies were originally established to maximize closeness to individual hospitals. Bankston highlighted the challenges faced by centralized manufacturers trying to distribute across the entire United States.
In comparison to pharmaceutical giants, RLS’s facilities may appear modest, but there are significant advantages to operating from smaller, strategically distributed sites, according to RLS CEO Stephen Belcher. These advantages contribute to de-risking the production process.
The radiopharmaceutical sector is experiencing a surge in growth, with approximately 400 radiopharmaceutical products in the pipelines of biopharmaceutical companies. As prominent pharmaceutical companies expand their presence in this field, private equity firms and biotech companies are also actively participating in funding and advancing radiopharmaceuticals.
Also Read: Lilly Makes A Splash In Radiopharmaceuticals With $1.4B Acquisition Of Point Biopharma
An illustrative example occurred recently when Nucleus RadioPharma secured $56 million in a series A investment round, earmarked for the establishment of new facilities in the United States, dedicated to the development, manufacturing, and distribution of radiopharmaceuticals.
Private equity firm RLS recognized the immense potential in 2020 when it acquired the radiopharmacy network from General Electric. Belcher revealed that RLS has been approached by roughly 70 companies keen to harness its specialized expertise.
Among the major pharmaceutical players, Novartis has been a frontrunner in the radiopharmaceutical arena. The company achieved FDA approval for its prostate cancer therapy, Pluvicto, last year, leading to a rapid increase in sales. Nevertheless, along the way, Novartis had to pause new patient starts to address manufacturing challenges.
