Bildnachweis: VentureCapital Magazin, Pixabay.
Theranostics is on the rise and is becoming an exciting investment opportunity for private equity firms and other investors. In Germany, the Dresden’s Radiopharmaceutical Cluster is setting the tone as a network and innovation hub.
For the Dresden-based radiopharmaceutical company ROTOP Pharmaka, the investment
deal with SHS Capital and Genui, which was announced in January, comes at just the right
time. The contract manufacturer of diagnostic and therapeutic radiopharmaceuticals for nuclear medicine began expanding its production and laboratory capacities in 2024, particularly for contract manufacturing as a CDMO. According to Jens Junker, CEO of ROTOP, four factors were decisive in sealing the agreement: ‘In our view, it was first our technological expertise and GMP know-how, backed by a solid 25-year track record, our scalable CDMO capabilities in radiopharmaceuticals, and a management team with deep industry expertise. Furthermore, both sides share the view that the radiopharmaceutical sector, particularly in the field of radioligand therapy (RLT), is on the verge of a period of significant market growth.’
Innovation boosters for diagnostics and drug development
Theranostics, which refers to the diagnosis of tumours and their targeted treatment by using low-level radioactive isotopes, has made promising process in recent years. ‘Triggered by a wide range of new radioisotopes and linker technologies for targeted tumour treatment or the diagnosis of neurological diseases such as Alzheimer’s, the market has grown rapidly, particularly over the past five years,’ explains Mathias Klozenbücher, head of the Life Sciences team at the investment firm FCF Fox Corporate Finance. The new drugs focus primarily on treatments in which radioactivity is delivered directly to tumour cells without damaging surrounding tissues. Market studies predict that sales for radioisotope manufacturers and drug developers will be accelerating in the coming years.
Germany’s rising innovation hub
Saxony is the German pioneer in nuclear medicine thanks to its network of companies and research institutions centred around the Radiopharmcy Cluster Dresden nukliD®. The foundation for this was laid by the former GDR Nuclear Research Center – now the ‘HZDR’ – which was already developing radiopharmaceuticals before German Reunification. The HZDR focuses on new substances for nuclear medicine therapy and diagnostics, as well as software algorithms for positron emission tomography (PET) imaging. For Prof. Dr Klaus Kopka of the Centre for Radiopharmaceutical Tumour Research at the HZDR, close collaboration among various stakeholders is key to the success of radiopharmacy and nuclear medicine in Dresden: ‘The growth of radiotheranostics is based on the identification of new biological targets and the rapid translation of corresponding target-specific radioligands from research into clinical application. With our infrastructure and innovative strength at the HZDR, combined with our close ties to clinical centres and industry, we are making this transition a reality.’ The local nukliD® cluster plays a central role here. What began in December 2022 at a life sciences forum organised by Saxony Trade & Invest Corp. (WFS), followed by a kick-off meeting with all stakeholders – including the HZDR, ROTOP Pharmaka GmbH and the industry network biosaxony – evolved into the founding of the nukliD Radiopharmacy Cluster Dresden on 16 January 2025. By showcasing nukliD® at investor events and hosting its own events on the topic of radiopharmaceuticals, WFS plays a significant role in raising the cluster’s profile beyond Saxony. ‘A key aspect of our strategic industry work is to identify at an early stage relevant technology trends and sectors with particular future potential for Saxony as a business location. We have been successful here in the field of radiopharmacy as we have identified the relevant stakeholders, supported their networking, and played a key role in driving the establishment of the cluster,’ says Managing Director Thomas Horn, commenting on the role of WFS.
International networking
Expanding this network beyond Saxony is the next important step. ‘Dresden and the entire Central German region already account for large parts of the radiopharmaceutical value chain. With nukliD®, we aim to further develop this ecosystem in a targeted manner to attract investors, start-ups, and international pharmaceutical companies,’ describes Dr Peggy Jungke, the cluster manager of nukliD®, the goal of the radiopharmaceutical cluster. In this context, nukliD® plays a key role in bringing innovative radiopharmaceutical agents for diagnostics and therapy to market more quickly and successfully scaling up existing technologies. According to Dr Jungke, the Dresden cluster is expected to play a pioneering role for other clusters in nuclear medicine throughout Germany. With several formats for formal and informal exchange already being established in Saxony, information exchange is currently taking place across the DACH region addressing three partner groups. In addition to clinical partners such as nuclear medicine specialists and study centres as well as research and network partners, the focus here is on expanding contacts with industry partners such as radiopharmaceutical specialists, contract manufacturers, suppliers, and logistics companies.
Local and private funding sources
This involves the search for investors. At nukliD®, which is still in the start-up phase and is not yet its own legal entity, funding comes from various sources. In addition to contributions from partners and the company itself, these include grants from the Innovation Cluster Smart Medical Devices and Therapies (ICSMDT) and support from Saxony Trade & Invest Corp. (WFS). To advance the commercialisation of theranostics in Germany, Dr Jungke still sees a significant need for funding: ‘Nuclear medicine in Germany requires even more growth financing and suitable public-private instruments, particularly for expanding infrastructure and scaling new developments.’ Private initiatives constitute one source of funding. The International Centers for Precision Oncology (ICPO) Foundation, established in 2019 and headquartered in Wiesbaden, promotes the global exchange of knowledge on theranostic applications in cancer medicine through international networks. In addition, it acts as a funder through grants: ‘Since its founding, the ICPO Foundation has awarded research grants totalling EUR 1.6 million. Furthermore, it launches special calls for proposals on highly topical research topics such as AI-driven advances in precision oncology,’ explains Prof. Dr Richard Baum, trustee of the ICPO Foundation and chair of its scientific advisory board. The second major initiative of the ICPO is the establishment of a global network of theranostics centres of excellence. ‘Our theranostics centres of excellence benefit not only from an accreditation system based on international standards and shared values of the world’s leading nuclear medicine societies, but also from unique, targeted support from the ICPO to address local clinical challenges,’ explains Odile Jaume, chairwoman of the ICPO Foundation. The focus is increasingly shifting toward low-income and emerging countries. Once a year, the ICPO hosts a virtual summit on this topic. This year’s event will take place on 12 and 13 November and, featuring approximately 30 presentations by renowned experts. To increase the visibility of theranostics centres in their respective regions and strengthen their local networks, the ICPO Foundation supports the organisation of ‘Theranostics Days’ within its network of centres. The first event of this kind will take place on 31 March 2026, on World Theranostics Day 2026 in Manila.
On the radar of Venture Capital
To secure millions in funding for their research and development, theranostics start-ups must convince venture capital firms to invest. ‘In-house isotope production or the technological capability to manufacture radioligand therapies, along with clinical collaborations with established players and an effective distribution network, are crucial for attracting investors,’ industry expert Klozenbücher advises the companies. Private equity has recognised the medical and commercial potential. ‘Radiotherapies have become a hot segment in precision medicine since Novartis achieved a breakthrough with Pluvicto, a radioligand approved in 2022 for the treatment of advanced prostate cancer, and now generates billions in annual revenue,’ says Fabrizio Calisti, Medical Director at Angelini Ventures.
Outlook
Looking ahead to the next five years, Calisti expects steady growth in theranostics. In his view, two factors are key to success: the enormous advances in diagnostics, which are making an increasing number of target molecules viable for radiopharmaceuticals, and the fact that, among all approaches in oncology, theranostics act most precisely on tumour cells. Based on this efficacy profile, he concludes radiopharmaceuticals could become first-line therapies for certain types of cancer. The appeal for investors like Angelini Ventures lies in the fact that a double quality check narrows down the field of eligible companies: ‘The barriers to entry are so high because theranostic companies must not only understand the biological aspects of their products but, given the short half-lives of the isotopes, also possess significant deeptech expertise in supply chains. Companies that can manage brilliantly both of these aspects are of interest to us.’
