Telix Pharmaceuticals Limited (ASX: TLX)

TLX is an Australian radiopharmaceutical company which was listed on ASX on 15^th November 2017. To treat cancer, TLX uses Molecularly Targeted Radiation (MTR) and develops diagnostic and therapeutic products. Its market capitalization stood at ~AUD 1.79 billion as of February 16^th, 2022.

Operational & 4QFY21 Financial Updates –

• On 16^th February 2022, it was announced that TLX had entered into commercial distribution agreement of Illuccix with Global Medical Solutions Australia (GMSA).
• On 14^th February 2022, FIL Limited and the related entities ceased to be the substantial shareholder in TLX by releasing a total of ~4.59% voting power.
• As per its 9^th February 2022, its Share Purchase Plan (SPP) at the offer price of ~AUD 7.70 per new share - deadline got extended to 25^th February 2022.
• As per the fourth quarterly report released on 24^th January 2022, with the company reported ~AUD 990k as its cash receipts from customers. Its operating cashflow stood at ~AUD 20.97 million in the fourth quarter and closed the accounts with a cash at the end of 31^st December 2021 as ~AUD 22.04 million versus ~AUD 45.85 million at the end of 30^th September 2021.
• During the fourth quarter, TLX got FDA approval for its lead prostate cancer imaging product “Illuccix” and its commercial launch in the U.S. is due for 1QFY22.

As per the Half Yearly Report the revenue from ordinary activities increased by ~81% Y-o-Y to ~AUD 2.91 million in 1HFY21 versus in ~AUD 1.60 million in 1HFY20. On the other hand, the net losses increased by ~78% Y-o-Y to ~AUD 32.51 million versus ~AUD 18.30 million in 1HFY20.

Technical Analysis: TLX’s price has been in the consolidation phase for the past one month. On the weekly chart, prices moved below the 21-period SMA which may act as a resistance level for the stock; however, taking the support of 50-period SMA on the lower levels. The momentum oscillator RSI (14-period) has also reversed from the higher levels and is currently trading at ~45.405. The important support level for the stock is placed at AUD 5.430, while the key resistance level at AUD 6.720.

After considering the company’s huge increase in 1HFY21 net losses, technical levels, and huge cash outflows at this stage, investing in this stock at current levels must be considered with a cautious approach, hence it's suggested to ‘Watch’ and re-evaluate the stock once the prices approach the support & resistance levels. The stock was analyzed as per the closing price of AUD 6.110 per share, up by ~4.623%, as of 16^th February 2022.

Weekly Technical Chart – TLX

Source: REFINITIV

OncoSil Medical Limited (ASX: OSL)

Listed on ASX on 15^th August 2005, OSL is an Australian biotechnology company. To address unresectable locally advanced pancreatic cancer (LAPC), OSL uses its lead product, OncoSil to deliver a pre-determined dose of beta radiation directly into cancerous tissue. Its market capitalisation stood at AUD 31.69 million as of 16^th February 2022.

Operational and 2QFY22 Financial Updates:

• On 3^rd February 2022, it got approval under Innovation Funding (NUB) program by German Institute for the Hospital Remuneration System (InEK) and was granted “Positive Status 1”.
• As per the quarterly report released on 31^st January 2022, with modest revenue growth the company reported ~AUD 132k as its cash receipts from customers and the operating cashflow stood at ~AUD 2.89 million in the second quarter. The accounts were closed with a cash at the end of 31^st December 2021 as ~AUD 6.66 million versus ~AUD 9.56 million at the end of 30^th September 2021.
• OSL’s clinical study got completed in December 2021 and it re-submitted USA HDE pre-package to FDA.

FY21 Top and Bottom Line: As per the annual report, revenue from ordinary activities grew by ~100% Y-o-Y and was reported as ~AUD 0.21 million in FY21. The net losses for FY21 rose substantially by ~144.8% Y-o-Y and were recorded as ~AUD 10.43 million versus ~AUD 4.26 million in FY20.

Technical Analysis: On a weekly chart, OSL stock prices are sustaining below the horizontal trendline at ~AUD 0.046 and facing the resistance of the same. The prices are trading below the trend-following indicators 21-period and 50-period SMA, which may act as a resistance zone. The momentum oscillator RSI (14-period) is trading at ~39.67 level, indicates lack of momentum. The important support level for the stock is placed at AUD 0.038, while the key resistance level is placed at AUD 0.044.

Considering the stock’s lacklustre levels without upside indication and subdued annual financials, investment in OSL at this price should be taken with extra caution hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.041 per share, up by ~2.500%, as of 16^th February 2022.

Weekly Technical Chart – OSL

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Yellow colour line reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

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