Novartis and Ratio Therapeutics have entered into a worldwide licence and collaboration agreement worth $745m to advance a somatostatin receptor 2 (SSTR2)-targeting radiotherapeutic candidate for cancer.

The SSTR2 protein is expressed in many cancers, including neuroendocrine tumours, breast cancer, and head and neck carcinoma.

The partners will work together on preclinical activities to research and select a development candidate, while Novartis will be responsible for all remaining development, manufacturing and commercialisation activities.

The alliance will utilise Ratio’s technology platforms, which it says “enable the development of fit-for-purpose radiopharmaceuticals for therapy and imaging that possess pharmacokinetic modulation”. This approach improves drug availability, tumour delivery and tumour loading, according to Ration.

In exchange, Ratio will receive combined upfront and potential milestone payments of up to $745m and will be eligible for tiered royalty payments.

Fiona Marshall, president of biomedical research at Novartis, said: “Radioligand therapies hold transformative potential for certain forms of cancer… We are delighted to collaborate with Ratio to advance this… candidate and work together to bring forward additional therapeutic options for patients with difficult-to-treat cancer.”

Also commenting on the agreement, Ratio’s chief executive officer, Jack Hoppin, said: “The team at Ratio is honoured and excited to partner with Novartis on the development of a next-generation SSTR2-targeting therapeutic. Together, we aim to develop a best-in-class therapy in the fight against SSTR2-expressing tumours.”

The partnership comes shortly after Novartis and Schrödinger entered into a research collaboration and licence agreement worth over $2.4bn to advance multiple drug candidates for Novartis to develop and commercialise.

The deal, announced earlier this month, will see the companies combine their existing research efforts to identify and advance drug candidates for undisclosed targets in Novartis’ core therapeutic areas.

Novartis also expanded its peptide discovery collaboration with PeptiDream in May with a new agreement worth over $2.8bn, and entered into an exclusive licence agreement worth over $1bn in April for the development and commercialisation of Arvinas’ clinical-stage prostate cancer therapy.