Cost and speed to market for diagnostics is compelling...

Cost and speed to market for diagnostics is compelling risk/reward wise when you consider recent success of peers in this space (both Lantheus and Telix Pharmaceuticals were where RAD is not too long ago).

For RAD101 Pivalate, phase III would be about $7.5m, based on $50,000 per patient and 150.

If Phase 2b, then that's approximately $1.5m, based on $50,000 per patient and 30.

Once you have a phase 2b or 3 asset in the space along with a nice fall-back portfolio big pharma will want in.

On the broader portfolio point, in addition to RAD101 (Pivalate) RAD 301 has already been tested across two human trials (17 patients at Fortis Medical Center and 66 patients under Gemerna Medical Drug Act), therefore has a high probability of phase 1 success with the potential to skip phase 2a and go straight to 2b or 3; and

RAD204 is the same targeting agent that Lantheus is currently in Phase 2 imaging trial for (remember, RAD secured the IP during the period Lantheus was imaging only - but note they've since been acquiring Therapeutics given the 10-40 x revenue per patient). RAD and Lantheus have a data sharing arrangement which RAD could leverage to go to 2b/3 potentially as well.

With interest in the space increasing rapidly (and likely to accelerate as more big pharma enter it - currently only 3 out of the top 20 are in), things could get very interesting deal wise. It does feel like RAD secured the IP at the right time as well as securing the JV with MD Anderson (largest cancer center in the USA), See forecast growth in the radio pharmaceuticals space as follows: