Novartis's Acquisition of Mariana Oncology
- Rohan Golla
- Aug 23, 2024
- 6 min read
Overview of the Deal
Acquirer: Novartis
Target: Mariana Oncology
Total Transaction Size: $1 billion upfront, plus up to $750 million in milestone payments
Expected Closing Date: Mid-2024
Advisors: Novartis Internal Teams, Mariana Oncology Advisors
In May 2024, Novartis announced its acquisition of Mariana Oncology, a Massachusetts-based preclinical-stage biotechnology company specializing in radioligand therapies (RLTs) for cancer treatment. The deal, valued at $1 billion upfront with an additional $750 million in milestone-based payments, is a strategic move by Novartis to strengthen its leadership position in the rapidly growing field of radiopharmaceuticals. Mariana's pipeline of RLT programs, particularly its lead asset MC-339 targeting small cell lung cancer, is a key attraction for Novartis as it continues to expand its oncology portfolio.
This acquisition reflects Novartis’ long-term strategy of focusing on radiopharmaceuticals as a critical technology platform for oncology, and it builds on previous deals that have established the company as a leader in the space. With this move, Novartis aims to accelerate its development of next-generation cancer therapies that target a broader range of solid tumors, including lung, prostate, and breast cancers. Mariana’s innovative use of actinium-based radioisotopes and its in-house clinical supply capabilities add significant value to Novartis’ existing operations, enhancing its ability to bring novel treatments to patients in need.
Acquirer Details – Novartis
Novartis is one of the world’s largest pharmaceutical companies, with a well-established presence in oncology and a strong track record in radiopharmaceuticals. The Swiss-based company has been a pioneer in radioligand therapies, with two approved RLTs on the market: Lutathera, for the treatment of gastroenteropancreatic neuroendocrine tumors, and Pluvicto, for metastatic castration-resistant prostate cancer. Novartis has been actively expanding its RLT portfolio through both internal research and external acquisitions, solidifying its leadership in this innovative and highly specialized therapeutic area.
The acquisition of Mariana Oncology is part of Novartis’ broader strategy to develop cutting-edge treatments for cancers with high unmet medical needs. By adding Mariana’s expertise and assets, Novartis strengthens its ability to explore new radioisotopes and treatment combinations that could revolutionize the way certain cancers are treated. With its global reach, robust infrastructure, and deep resources, Novartis is well-positioned to bring Mariana’s promising therapies to market and improve outcomes for cancer patients worldwide.
Founded: 1996 (formed from the merger of Ciba-Geigy and Sandoz)
Headquarters: Basel, Switzerland
CEO: Vas Narasimhan
Number of Employees: 110,000
Market Cap: $205 billion (as of May 2024)
LTM Revenue: $52 billion USD
LTM Net Income: $8.9 billion USD
Target Details – Mariana Oncology
Mariana Oncology is a preclinical-stage biotechnology company founded in 2021 with a focus on developing radioligand therapies for cancer. Based in Watertown, Massachusetts, Mariana has quickly established itself as a leader in the radiopharmaceutical space, raising significant venture capital to support its innovative RLT pipeline. The company’s lead program, MC-339, is a peptidic small molecule engineered to deliver a radioactive actinium payload to small cell lung cancer cells. By targeting a specific receptor on cancer cells, MC-339 is designed to deliver highly localized radiation that damages cancer cells while minimizing harm to surrounding healthy tissues.
Mariana’s expertise in radioisotope development, coupled with its in-house clinical supply capabilities, makes it an attractive acquisition target for Novartis. The company’s preclinical pipeline includes several other RLT programs targeting various solid tumors, providing Novartis with a strong platform for future growth in oncology. Although Mariana is not yet ready for commercial-scale production, its early-stage manufacturing capabilities are well-suited to support clinical trials and further drug development.
Founded: 2021
Headquarters: Watertown, Massachusetts
CEO: Simon Read, Ph.D.
Funding: $250 million (Series A and B rounds)
Number of Employees: 50+
Pipeline: MC-339 (lead candidate), other preclinical RLTs targeting solid tumors
Short-Term Effects
In the short term, the acquisition of Mariana Oncology by Novartis is expected to have several immediate impacts, particularly on Novartis’ RLT pipeline and manufacturing capabilities. One of the most important short-term benefits is the expansion of Novartis’ RLT portfolio. With the addition of Mariana’s lead candidate, MC-339, Novartis will be able to advance a promising new treatment for small cell lung cancer into clinical trials. This candidate has the potential to fill a critical gap in the current treatment landscape for lung cancer, which remains a highly aggressive and difficult-to-treat disease.
Furthermore, Mariana’s preclinical pipeline includes several other RLT programs targeting solid tumors such as breast and prostate cancer, providing Novartis with new avenues for drug development. These early-stage assets complement Novartis’ existing RLT programs and allow the company to explore new isotopes and combinations that could lead to breakthrough treatments. By expanding its research capabilities and adding new talent from Mariana, Novartis will be able to accelerate its RLT development efforts and maintain its leadership in this rapidly evolving field.
Another short-term benefit of the acquisition is the bolstering of Novartis’ clinical supply infrastructure. Radiopharmaceuticals pose unique manufacturing challenges due to the short half-lives of radioisotopes and the complexity of handling radioactive materials. Mariana has developed in-house capabilities to support the clinical development of its RLTs, and these assets will be integrated into Novartis’ broader manufacturing network. This will enhance Novartis’ ability to ensure a reliable supply of RLTs for its clinical trials and mitigate the risk of future supply chain disruptions, which have affected the availability of some of Novartis’ approved RLTs in the past.
Long-Term Effects
In the long term, the acquisition of Mariana Oncology is expected to have transformative effects on Novartis’ oncology business. By strengthening its RLT pipeline and expanding its research capabilities, Novartis is positioning itself to remain at the forefront of radiopharmaceutical innovation. Radioligand therapies represent a new frontier in cancer treatment, offering a highly targeted approach that delivers radiation directly to tumor cells while minimizing damage to healthy tissues. As this field continues to evolve, Novartis is well-placed to lead the development of next-generation RLTs that could change the standard of care for a wide range of cancers.
One of the most significant long-term benefits of the deal is the potential for Novartis to expand its RLT offerings beyond prostate and neuroendocrine tumors, which are currently the primary indications for its approved therapies. Mariana’s pipeline includes candidates targeting a broader range of solid tumors, including lung and breast cancer, which represent significant areas of unmet medical need. By developing RLTs for these indications, Novartis could capture a larger share of the oncology market and provide new treatment options for patients who have limited alternatives.
Additionally, the acquisition of Mariana Oncology provides Novartis with the opportunity to explore novel radioisotopes and combinations of therapies. While Novartis’ current RLTs use the radioisotope lutetium, Mariana’s lead candidate, MC-339, uses actinium, a different radioisotope that could offer distinct advantages in terms of potency and selectivity. By diversifying its portfolio of radioisotopes, Novartis can explore new mechanisms of action and potentially develop more effective treatments for different types of cancer.
Furthermore, the integration of Mariana’s research capabilities will allow Novartis to pursue new combination therapies that leverage the unique properties of RLTs. For example, Novartis is already exploring the potential of combining RLTs with immunotherapies and targeted therapies to enhance their effectiveness. By adding Mariana’s expertise to its own, Novartis can accelerate these efforts and potentially develop combination treatments that provide even greater benefits to patients.
Risks and Uncertainties
Despite the many potential benefits of the Novartis-Mariana acquisition, there are also risks and uncertainties that could impact the success of the transaction. One of the key risks is the integration of Mariana’s research and development capabilities into Novartis’ existing operations. While Novartis has extensive experience in developing and commercializing radiopharmaceuticals, integrating a smaller, preclinical-stage biotech into a large, multinational organization can present challenges. Ensuring that Mariana’s innovative culture and research focus are maintained within the larger structure of Novartis will be critical to realizing the full value of the acquisition.
Another risk specific to the deal is the uncertainty surrounding the clinical development of Mariana’s lead candidate, MC-339. While the preclinical data for MC-339 is promising, the drug has not yet been tested in humans, and there is always the possibility that it may not demonstrate the desired safety and efficacy profiles in clinical trials. Any setbacks in the development of MC-339 could delay the potential commercialization of the drug and impact Novartis’ return on investment in Mariana.
In addition to clinical risks, the regulatory landscape for radiopharmaceuticals is complex and evolving. As Novartis continues to develop new RLTs, it will need to navigate the regulatory approval process in multiple markets, which can be time-consuming and costly. Any delays or obstacles in obtaining regulatory approval for Mariana’s RLT candidates could impact the timeline for bringing these therapies to market.
A final risk is the potential for competition in the radiopharmaceutical space. Several other major pharmaceutical companies, including AstraZeneca, Eli Lilly, and Bristol Myers Squibb, have also made significant investments in RLTs, and the field is becoming increasingly crowded. While Novartis has a strong position as a leader in radiopharmaceuticals, it will need to continue innovating and developing new treatments to stay ahead of its competitors.