Novartis (NYSE:NVS) on Wednesday announced the construction of two new radioligand therapy (RLT) manufacturing facilities in the U.S. as the company faces stiff competition in the radiopharma space.

The Swiss drugmaker is establishing a new facility at its Indianapolis site to produce radioisotopes, a class of chemical compounds critical for RLT manufacturing, and opening a new facility in California, making its third RLT manufacturing site in the U.S.

A class of precision medicines, RLTs combine a tumor-targeting molecule (ligand) with a therapeutic radioisotope to aim for cancer while limiting damage to surrounding tissue.

Novartis (OTCPK:NVSEF) is a dominant force in the RLT space, with radiopharmaceuticals such as Pluvicto and Lutathera in its portfolio.

The company said that following regulatory clearances, the radioisotopes produced in Indianapolis will be used to manufacture Pluvicto, Lutathera, and its investigational RLTs.

Its manufacturing expansion comes amid rising M&A activity in the radiopharma space.

In December, Eli Lilly (LLY) completed its $1.4B purchase of Point Biopharma, an RLT-focused biotech. In June, AstraZeneca (AZN) completed its $2.4B acquisition of Fusion Pharma, a Canadian biotech focused on a class of cancer drugs called radioconjugates.

The deals sparked industry interest, boosting shares of their rivals, Actinium Pharmaceuticals (ATNM), Perspective Therapeutics (CATX), Cellectar Biosciences (CLRB), CASI Pharmaceuticals (CASI), and Lantheus Holdings (LNTH).