Telix Pharmaceuticals’ Shares Rose Over 9.7% On ASX Post Non-Deal Road-Show

Telix Pharmaceuticals Limited (ASX:TLX) functions in the health care sector and engaged in the commercializing and development of Molecularly Targeted Radiation (MTR) products for the treatment of cancer. The company was founded in 2015 by Dr. Chris Behrenbruch and Dr. Andreas Kluge, experienced nuclear medicine veterans. The company has multiple commercial partnerships with leading global healthcare companies like Cardinal Health, GenesisCare, ISOLogic, etc.

MTR chemically links radioactive isotopes to targeting molecules that are very specific for cancer cells. At a low dose, this enables pinpointing the location of cancer cells using PET imaging. The company distinguishes the term MTR because there are many “radiopharmaceuticals” that are not targeted. Telix is targeting agent agnostic, which uses both antibody and small molecule approaches.

The company is into the development of drugs that deliver targeted radiation directly to cancer. At low radiation dose (or using diagnostic nuclides), the patient can be imaged. The use of molecular imaging with PET creates a precision medicine approach to treatment through better patient selection and personalized dose optimization. The patient is treated using higher radiation doses.

TLX591 is used for metastatic prostate cancer, and radionuclide therapy is A $2 billion market opportunity in late-stage disease alone. TLX101 is used for the treatment of GBM, which is a $300 million market opportunity with few beneficial options for patients. TLX250-CDx, however, provides a niche $250 million opportunities with no real competition, which is used for mis-staged renal cancer patients. TLX250 is used for patients who have progressed from immunotherapy and the medicine provides a market opportunity of $400 million to $500 million.

There are only a handful of companies in the radiopharmaceutical/MTR space with a late-stage product pipeline. Telix has a unique pipeline of products and faces moderate competition in prostate and GBM, with no meaningful competition in renal cancer.

On the financial front, the company raised $50 million through IPO on the Australian Securities Exchange (ASX) on Nov 2017. Predominantly, it has an institutional shareholder base, including Fidelity, Acorn Capital, UV Cap.

In the recent past, the company announced to have completed manufacturing of VisAct® ImmunoPET Tracer VisAct® with Cyclotek. It is an imaging agent (“contrast agent”) used with Positron Emission Tomography (PET). VisAct® images the location of activated (killer) T-cells and can be essentially used to take a snapshot of how the immune system is responding to therapy. This is a potentially invaluable tool because the company increasingly combine different anti-cancer drugs with immunotherapies.

On the price-performance front, the stock of Telix Pharmaceuticals Limited is currently trading at $0.735 with ~9.701% increase during the day’s trade (At market close on 26 March 2019) with a market capitalization of ~$146.31 million. The stock has generated a YTD return of 3.08% and generated returns of -17.28%, 6.35% and -6.94% over the past six, three and one-month period, respectively. It had a 52-week high price of $1.030 and a 52-week low price of $0.540, with an average trading volume of ~98,980.

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