Telix Pharmaceuticals Limited

TLX Details

Stock zoomed 39% in last 3-months: Telix Pharmaceuticals Limited (ASX: TLX) develops diagnostic and therapeutic radiopharmaceuticals for Metastatic prostate cancer, Renal (kidney) cell cancer and Brain cancer (glioblastoma). Recently, TLX announced that it has completed the manufacturing of F-AraG (VisAct®) in collaboration with Cyclotek (Aust) Pty Ltd., a leading radiopharmaceutical CMO.

Current Product Pipeline: TLX is undergoing multiple clinical-stage programs with strong product pipeline which can be proved a multi-billion opportunity for the company. (1) TLX591: Metastatic prostate cancer radionuclide therapy is $2Bn opportunity in late-stage disease alone (2) TLX101: The treatment of GBM is a $300m market opportunity with few beneficial options for patients (3) TLX250-CDx: Renal cancer patients are often mis-staged, a niche $250m opportunity with no real competition (4) TLX250: therapy for patients that have progressed from immunotherapy is a $400-500m opportunity (5) TLX591–CDx: Prostate cancer imaging (targeting PSMA) is the biggest new indication for PET/CT in radiology and represents a $500m opportunity in the US alone. Detecting early metastatic disease is a major unmet need.

Acquisitions Made During FY18: TLX acquired two companies in FY18– Atlab Pharma SAS (Nantes, France) and Advanced Nuclear Medicine Ingredients SA (ANMI) (Liège, Belgium).

Research collaborations: TLX has collaborations with leading research institutions like Radboud University (Netherlands), University of Nantes/ARRONAX (France), the University of Melbourne (Australia), Osaka University (Japan) and Memorial Sloan Kettering (USA). These collaborations are to upgrade the ability to manufacture products, allow new applications of pipeline and provide new markets.

Financial Performance in FY18: TLX has recently debut on Australian Stock Exchange. Prima facie, TLX recorded losses of $13.83 million in FY18. Negative EPS and zero dividend were seen on account of incurred losses.

FY18 Income Statement (Source: Company Reports)

Stock Recommendation: Looking at the price movement, the company’s stock has appreciated significantly with gain of 49.21% and 22.88% in last 1-year and 3-months, respectively. It can be said that these increases have pushed the stock closer to the 52-week higher level. Although the company has been a consistent performer and value generator for the investors, we believe that the current price might have discounted all the recent positive developments and presume that there might be some price correction in the stock in the near term. On the basis of the sharp run-up seen in the stock price (as mentioned above), we advise investors to book profit at the current level.We, therefore, recommend a “Sell” rating on the stock at the current market price of $0.950 per share (up 1.064% on 17 April 2019).
 

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