Fox Chase Cancer Center invested in a startup that is developing drugs that use radioactive molecules to diagnose and treat cancer

Fox Chase Cancer Center is investing in a Minnesota-based start-up that develops drugs to diagnose and treat cancer by injecting patients with radioactive molecules that can target solid tumors with more precision than traditional methods.

The investment is part of a $56 million venture capital fundraising round reported Tuesday by Nucleus RadioPharma, a developer of radiopharmaceuticals, as this class of drugs is known.

Fox Chase leaders said the deal puts the Philadelphia cancer center at the forefront of what they see as one of the most promising areas of cancer research, bringing more clinical trial possibilities and potentially a new drug manufacturing hub to the Philadelphia region.

Leaders declined to disclose how much the institution contributed to the early stage fundraising round known as a series A.

The global radiopharmaceutical industry was valued at $5.2 billion in 2022 and is expected to grow to $13.7 billion over the next 10 years, according to Allied Market Research, which assesses the market for investors.

“Investing in Nucleus RadioPharma is not just about funding a company but about catalyzing an entire sector,” Robert Uzzo, president and CEO of Fox Chase, said in a statement.

Nucleus RadioPharma was co-founded in 2022 by Mayo Clinic and Eclipse, a Silicon Valley venture firm. Eclipse and GE HealthCare were the lead investors; others included Mayo Clinic, Mercy Health, and University of Missouri.

Radiopharmaceuticals contain radioactive molecules that, when injected into a patient in very small doses, can find and “light up” a tumor, which makes tumors easier to see and enables doctors to make a more precise diagnosis, said Gary Cohen, chair of Fox Chase’s department of diagnostic imaging.

Higher doses of a radiopharmaceutical could be used to treat the tumor. The approach can more directly target a tumor with less risk of radiation spreading to nearby tissue, compared to traditional radiation therapy, which uses beams of radiation to zap tumors.

“It’s way more personalized, but also it’s less toxic because it goes to only where the tumor is,” Cohen said.

A major limitation: Radioactive drugs lose their power quickly, which means that currently they can be used only among patients who are treated at a medical facility near a manufacturing site.

The new funding will enable Nucleus, which is based near Mayo Clinic’s Minnesota headquarters, to begin addressing these supply chain issues so that the treatments can be mass produced, company CEO Charles S. Conroy said in a news release.

By 2027, the company plans to open two regional factory hubs, one of which will be in the Philadelphia area, according to a news release from Fox Chase.

Cohen said he is eager for Fox Chase to be part of creating an East Coast “powerhouse” through a new manufacturing site. Through the partnership, Fox Chase will be able to participate in Nucleus’ clinical trials.

The investment is a first for Fox Chase and may not be its last.

In a statement, Uzzo said Fox Chase would continue to seek out partnership opportunities that are “innovative, move science forward, and ultimately benefit patients with cancer.”