Telix proposes $1.65 billion deal to acquire ITM and bolster radioisotope supply
Key Facts
Telix Pharmaceuticals announced a proposed agreement to acquire all of ITM’s shares for $1.65 billion upfront on a cash-free, debt-free basis, in a deal aimed at expanding its presence in the manufacture and supply of radioisotopes. Telix said the combined group could generate revenue and other income of more than $1.3 billion in 2026, on an estimated, unaudited basis. Completion remains subject to approval by Telix shareholders and customary closing conditions, so the acquisition is not yet final. The announcement comes as Telix reported revenue of $245 million in the third quarter, up 19% year over year. The proposed deal would give the company a broader presence in the supply chain for radiopharmaceutical therapies, while adding ITM’s therapeutic assets to its portfolio.
The base consideration includes about $1.25 billion payable to sellers in the form of 105.8 million Telix shares at closing. Telix will also assume net debt of $302 million, while the deal terms include $96 million for management equity rollovers and transaction expenses. In addition to the base consideration, contingent payments could reach $250 million upon U.S. Food and Drug Administration approvals for ITM-11 in different indications. A further amount of up to $450 million is tied to the drug’s global net sales in fiscal 2030, if they exceed $150 million. These contingent amounts may be paid in cash or Telix shares; they are not guaranteed payments because they depend on the specified approvals and sales.
The deal also builds on ITM’s business supplying materials needed for radiopharmaceutical medicine. Telix says the German company is the world’s only large-scale commercial producer of lutetium-177. ITM’s distribution network spans more than 65 countries, and Telix describes it as the primary external supplier of the isotope for Pluvicto treatment, as well as a supplier to other customers under long-term contracts. ITM generated annual revenue of $273 million in 2025, with revenue growing at a compound annual rate of 40% from 2021 to 2025. In the first half of 2026, the company reported revenue of $156 million, and its manufacturing gross margin exceeded 40%. Telix expects double-digit growth in manufacturing revenue, as it bets on expanded production capacity and integration between the two companies.
Telix’s group revenue rose from $206 million in the third quarter of 2025 to $245 million in the third quarter of 2026, but fell 1% from revenue of $247 million in the second quarter. The company said the year-over-year increase came as demand for its commercial portfolio remained strong, while September sales lifted the quarterly exit rate and indicated continued strong demand for prostate-specific membrane antigen products. Precision medicine revenue was $201 million, up 30% year over year, driven by Gozellix and Illuccix. By contrast, revenue from Telix’s manufacturing solutions fell 6% to $44 million. The figures show a divergence between growth in precision medicine and contraction in manufacturing during the quarter, alongside a slight decline in total revenue from the previous quarter.
The deal adds a therapeutic pipeline led by ITM-11, a candidate for gastrointestinal neuroendocrine tumors. The drug completed the Phase 3 COMPETE trial; in its analysis, median progression-free survival was 23.9 months with ITM-11, compared with 14.1 months with everolimus among patients included in the study. The regulatory process is still ongoing: ITM said it intends to resubmit the drug application to the FDA after reviewing the agency’s comments and coordinating with relevant external parties, without specifying a resubmission date. In another program, the Phase 3 BiPASS study completed enrollment and is evaluating prostate cancer detection before biopsy; Telix said the agency supported the application pathway and granted the study Fast Track designation. The company also said the FDA approved Pixclara for glioma imaging, describing it as the first approved imaging agent for this indication in the United States, with the first commercial doses administered in September 2026.
Telix expects ITM’s business to contribute positively to the group’s earnings before interest, taxes, depreciation and amortization from 2027, and the company is targeting cost savings and synergies during the first two years of the deal. The expected contribution depends on manufacturing growth, cost reductions and realization of synergies, while the forecasts remain conditional on completion of the deal. Telix reaffirmed its forecast for revenue and other income to exceed $1 billion in fiscal 2026, estimating revenue of between $950 million and $970 million, plus $40 million in other income. Reuters reported that Telix shares fell about 6% to 16.82 Australian dollars in early trading on September 21, after the agreement was announced. The stock closed at 9.54 on October 22, according to EL7 data. Telix plans to seek shareholder approval at an extraordinary meeting expected in November 2026, and expects to complete the deal by year-end, subject to approvals and customary conditions; the market is also awaiting an interim analysis of the COMPOSE study in the first half of 2027.