Israeli innovative cancer radiation treatment company Alpha Tau Medical (Nasdaq: DRTS) today announced a strategic collaboration agreement with Tolmar International to develop and commercialize Alpha DaRT for the treatment of prostate cancer in the US. Alpha Tau’s share price has risen 85% since the start of 2026, and 198% over the past year, giving a market cap of $807 million. The company’s share price opened 22% higher today on Wall Street, giving a market cap of $984.5 million.
Tolmar will make a $20 million equity investment in Alpha Tau at $11.99 a share, a 25% premium on the 30-trading day volume-weighted average price prior to signature, and will pay $15 million towards the construction of a new Alpha DaRT production facility in the US. Payments have also been agreed for future clinical development and US regulatory approval work, which total up to $96.5 million in development and regulatory milestone payments for the initial indication, and up to $65 million in commercial milestone payments, subject to achievement of specified milestones.
Alpha Tau has developed a new method of targeted radiation for treating cancer patients. The company’s technology is in advanced trials for treating cancers such as GBM brain cancer, pancreatic cancer, head and neck cancer and certain types of skin cancer. It is currently continuing to develop all of these independently. In the field in which Tolmer will receive exclusivity, the urological field, the company has not yet conducted organized trials and has not published results, but it has previously treated patients from diverse fields, including this field, apparently to Tolmer’s satisfaction.
The first product that the companies will develop together is for the treatment of recurrent prostate cancer. Today, there are many approaches to treating prostate cancer for the first time, but if the cancer returns, it is more complex to perform the classic type of radiation a second time. Alpha Tau’s product uses a different, more focused radiation, called alpha radiation. The company injects tiny radiation sources (Alpha DaRT) into the tumor area, where they emit radiation that is focused on the site.
The agreement includes additional indications in the prostate field, and an option to expand the agreement to bladder cancer for an additional fee.
«Very efficient in conducting our trials»
Alpha Tau CEO Uzi Sofer: «Tolmar is a well-established company in the field of urology in the US. We decided to grant exclusivity for one of our most promising but least advanced indications. In the field of recurrent prostate cancer, there are currently no good solutions for local treatment. This is about 60-80,000 potential patients per year.
He added, «We currently have three manufacturing plants, one in Jerusalem and two in the US. We are building another plant for them. It is very important to build a plant that will be accessible by overnight delivery throughout the US, because this is a radioactive material whose radiation intensity fades over time. It is possible in principle to market the product from Israel as well, but then we would have to load it with radiation, most of which will fade along the way. If the material can be shipped overnight to any location in the US, then there is almost no decline.
«In the company’s standalone indications, the most advanced area is in skin cancer, where we hope to submit the results of the clinical phase of the trial to the FDA in 7-8 months, meaning there is potential for approval, if the results satisfy the FDA, as early as next year. In the pancreas field, the company is in a trial in which its product will be combined with chemotherapy for metastatic and advanced patients. At the same time, the product has already received marketing approval in Japan, for head and neck cancer. «We are now talking to the payment authorities,» says Sofer.
You are conducting many trials at the same time, less focused than some of the other companies, and now the products are entering advanced trials that can be expensive. Do you have the resources necessary for that?
«We are very efficient in conducting our trials, and not only do we have the resources, but we are sitting on a fairly large cash pot of $80 million. Some of the expected payments for the urological indication may be used for this purpose.»
Positive recommendations from analysts
Alpha Tau is undergoing growth, and about a week ago, investment bank Barclays began covering the company with a price target price of $15 per share, compared with $10.91 in trading today, after the share opened 22% higher following the announcement of the deal. The recommendation said, «Although biotechnology is a risky area for investment, differentiated platforms with a clear scientific rationale, clinical data and risk-reducing mechanisms have a positive impact on the level of risk.»
HC Wainright also gave a «Buy» recommendation at $15 per share but investment house Piper Sandler recommended «Hold» with a price of $8 per share.
Tolmer is a US company founded in 2007 to focus on urology (urinary system), oncology (cancer), endocrinology (hormonal system) and pediatric endocrinology.
Published by Globes, Israel business news — en.globes.co.il — on June 3, 2026.
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