Highlights:

TLX share price falls 18% on Tuesday to AUD 16.54 per share.

Telix discloses unaudited financial recast in US dollars following currency shift.

Telix shares down 34% since 22 July.

Shares of Telix Pharmaceuticals Ltd (ASX:TLX) fell sharply in Tuesday trade, declining as much as 18.3% to AUD 16.54. This drop adds to recent downward momentum, with the stock now down approximately 34.2% since 22 July. The broader S&P/ASX 200 Index was up 0.9% at the same time, underlining the company-specific nature of the decline.

The latest selling pressure follows the company’s release of unaudited, restated historical financial results in US dollars. This restatement is part of Telix's decision to shift its financial reporting currency from Australian dollars to US dollars, effective from 1 January 2025. Management stated the change better reflects the composition of the company’s revenue, cost base, and cash flows, which are primarily generated from its US operations. However, the timing of this restatement appears to have exacerbated investor concerns that began in late July. On 23 July, Telix disclosed that it had received a subpoena from the U.S. Securities and Exchange Commission (SEC) related to disclosures concerning its prostate cancer therapy program. The company has not provided further details or resolution timelines, and the matter remains ongoing.

Telix said the financial restatement is intended to help analysts and investors compare upcoming financial results more consistently, given the currency shift. But rather than focusing on historical earnings growth, investors appear to be reacting to the growing regulatory uncertainty and potential implications of the SEC inquiry. In its restated figures, FY24 revenue rose to AUD 516.6 million, an increase of 55% from FY23’s AUD 333.0 million. Gross profit increased 60% to AUD 336.2 million, with the gross margin improving slightly from 63% to 65% year over year.

EBITDA rose 71% to AUD 67.4 million in FY24, while cash and cash equivalents surged to AUD 440.0 million at year-end, compared to AUD 84.3 million a year earlier. These metrics reflect the growing contribution of Telix’s US business, particularly following the January 2025 acquisition of RLS Radiopharmacies. Despite these headline improvements, the market appears focused on regulatory risks and how they might affect Telix’s growth plans and commercial trajectory. The company is scheduled to release its H1 FY25 results on 21 August, after market close.