Telix Pharmaceuticals Limited (Telix, the Company, ASX: TLX) is a biopharmaceutical business that develops and commercialises therapeutic and diagnostic radiopharmaceuticals and associated medical devices. These clinical and commercial stage products aim to address unmet medical needs in oncology and rare diseases. Telix was listed on the ASX in 2017 at 65 cents a share.
Proposed Nasdaq Listing
Telix has filed for a proposed listing of American Depositary Shares on the Nasdaq Stock Market (Nasdaq), comprising the Company’s existing ordinary shares. Each American Depositary Share will represent one Ordinary Telix share and will trade on the Nasdaq under the ticker symbol “TLX”.
The primary purpose of the proposed Nasdaq listing is to facilitate investor interest in the Company from US and global investors by enabling streamlined and simplified access to Telix shares by the US market.
Telix’s presence in the US is expanding through organic growth and acquisitions, requiring access to significant amounts of growth capital. It will also simplify access to Telix’s securities and equity-related incentives for US domiciled employees, since most of Telix’s employees are based in the US.
Telix intends to retain its primary listing on the ASX for the foreseeable future, alongside the proposed Nasdaq listing.
The Nasdaq is the world’s largest and most dynamic securities market for global biopharmaceutical firms seeking to raise growth capital. However, Telix has stated that it is not proposing to raise capital or issue any new shares under the Nasdaq registration process, or as part of the proposed Nasdaq listing.
Failed Initial Public Offering in June 2024
On 5 June 2024 Telix announced its intention to raise US$200 million by way of an Initial Public Offering in the US of American Depository Shares, each representing one ordinary share in Telix. The new American Depository Shares were to be listed on the Nasdaq under the ticker symbol “TLX”. On 14 June, Telix announced that it would not proceed with the proposed Initial Public Offering.
The reason provided to shareholders for not proceeding was that the proposed offer price was at a discount that was not aligned with its duty to existing shareholders. In other words, the bids received for new shares on offer under the Initial Public Offering were at a steep discount to the Board’s expectations. Perhaps any future capital raising will be delayed until the next positive news item on a product approval or product launch, or favourable quarterly sales report is released.
In the interim, the $650 million raised in convertible bonds in July 2024 and listed on the Singapore Securities Exchange (SGC-ST) will be used to fund current growth opportunities.
September quarter revenue exceeds A$200 million
A 55 percent lift in revenue to $195 million generated from sales of Telix’s prostate cancer imaging product, known as “Illuccix”, is behind the strong September quarter revenue outcome.
Strong revenue growth from sales of Illuccix reinforce Telix as the leading provider of Prostrate-specific Membrane Antigen imaging (“PSMA”) and the market leader in the treatment of urological cancers.
Just $6 million of the $201 million revenue for the September quarter was generated outside the US. The strong September quarter revenue has enabled the Company to reaffirm full-year revenue guidance of between A$745 million to A$776 million. This amount is an increase of 48 to 54 percent on full-year 2023 revenue.
Looking ahead
Telix is already a leading global cancer diagnostic specialist and is positioning itself as a global supplier and distributor of medicines used to treat cancer.
Future growth is likely to be sourced from sales of Illucix in new jurisdictions throughout Europe and the UK, boosting annual revenue beyond $1 billion in FY25. Other sources of future revenue growth are likely to flow from the launch of new therapies to treat kidney and brain cancers.
Telix Pharmaceuticals chief executive Dr Christian Behrenbruch, who co-founded the Company and owns a 7 per cent stake, has expressed confidence that Telix can significantly boost revenue in the years ahead.
There are no certainties in the share market, only probabilities and investment in Telix is not without risk. However meaningful upside exists as Telix’s cancer treatment pipeline of products achieve further positive clinical trial results followed by regulatory approval.
