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Melbourne-based Telix Pharmaceuticals’ (ASX: TLX) expansion of its US manufacturing base is reaping early rewards after the company announced a 62 per cent increase in first-quarter revenue to US$186 million ($291.2 million).
The result was also driven by robust global sales of its prostate cancer imaging agent Illuccix, which accounted for $151 million of the total – up 35 per cent from a year earlier.
News of the strong earnings performance lifted shares in Telix by 15 per cent to a peak of $28.98 in early trading amid robust gains for the broader share market. The shares were trading at $27.97, up 11 per cent, at 11.29am (AEST).
Telix, which is headquartered in Melbourne but has extensive operations in the US, firmed up its production capacity in North America last year through the US$250 million acquisition of RLS (USA) Inc which has given the group access to 31 licensed radiopharmacies across the US.
The quarter included two months of revenue totalling US$33 million from RLS, an acquisition that has also firmed up the group’s production capacity in North America. RLS has about 10,000sqm of licensed expansion space that Telix says can be used to meet rapidly growing production demand.
“This strategic acquisition has significantly expanded our manufacturing footprint in the US, which we believe is an increasingly important consideration amid changing global trade dynamics,” says Telix CEO Dr Christian Behrenbruch.
Telix has reaffirmed that it does not expect any material impact on its business or supply chain from the trade tariffs announced by the US earlier this month or the subsequent inclusion of pharmaceuticals.
The company says it has extensive US-based manufacturing and distribution infrastructure, including third-party manufacturing sites and radiopharmacy partner networks, for the production and delivery of its FDA-approved products Illuccix and Gozellix.
The unaudited results for the three months to the end of March put Telix on track to achieve revenue of between $US770 million and $US800 million for FY25 as previously forecast.
Behrenbruch notes that the latest quarter reveals further sales growth for Illuccix, a prostate cancer imaging agent used in conjunction with a PET scan to help diagnose and stage the disease.
“Illuccix has continued its momentum, gaining market share and maintaining price stability in a competitive landscape,” he says.
“Telix is the only company with two FDA-approved PSMA-PET imaging agents – Illuccix and Gozellix – enabling us to broaden patient reach and maximise choice for our customers.
“The expansion of our commercial portfolio and launches of Illuccix into new international markets provides a foundation to diversify and grow revenue globally, while we continue to deliver on multiple catalysts in our pipeline.”
Illuccix is commercially available in Brazil, while the company is planning commercial launches in the UK and Europe where the imaging agent recently received approval.
Gozellix, Telix’s next-generation PSMA-PET imaging agent for prostate cancer, provides a longer shelf life of up to six hours and an extended distribution radius compared to existing gallium-based imaging products. It was approved in March by the US Food and Drug Administration.
Telix is planning to launch Gozellix in the US in the current quarter after appointing Cardinal Health and RLS Radiopharmacies as distribution partners.
Meanwhile, Telix has today announced that Kevin McCann will retire as chairman on 21 May 2025, closing off almost eight years in the role.
Tiffany Olson will chair the Telix board following McCann’s retirement.
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