Telix Pharmaceuticals, a radiation biology and oncology company that is aspiring to list on ASX this year, is grabbing attention these days as Caledonia Investment’s co-founder, Mark Nelson, and ex- Macquarie Bank chairman Kevin McCann seem to be backing the company. The group that is dedicated to development and commercialisation of several advanced “theranostic” programs, expects to raise about $50 million at 65 cents per share, and this would value the company at about $130 million. It is also said that half of the capital might be raised from offshore and a few global investment funds are already on board. Earlier this year, Acorn Capital Investment Fund has been noticed to be having an unlisted investment in Telix. The joint lead managers for the listing are said to include Taylor Collison and Wilson’s Advisory. Telix intends to use the proceeds from the above move for clinical development and trials. Three key things to note about Telix include:

1.      Growth hinging on the selective killing ability of molecularly targeted radiation: The radiopharmaceutical space has been moving up the radar with molecularly-targeted radiation (MTR) based drugs for cancer treatment gaining significant interests. In this scenario, Telix seems to have MTR drugs, which are under clinical development stages, and expected to offer better treatments for prostate, renal (kidney) and glioblastoma (brain) cancer. The key aspect is centred around the fact that MTR only kills selectively and has the ability to target very small tumours; and this makes Telix to be considered by many healthcare giants for a buy-out or a partnering target as the company might proffer a great area for growth in medicine. Nonetheless, progress and outcomes of clinical trials would play a pivotal role in deciding the fortune.

2.      Key Agreements being put in place: Telix has completed a Master Services Agreement (MSA) with Cyclotek (Aust) Pty Ltd under which Cyclotek will provide Telix with radiopharmaceutical manufacturing and distribution services for Telix’s pipeline of oncology products (for clinical trial purposes and prescriber exemption use, as applicable). Further, a licence agreement collaboration with Abzena plc for its prostate-specific membrane antigen antibodies (PSMA), has been bagged in July this year; and this will allow Telix to use Abzena’s PSMA antibodies to strengthen its clinical development program for antibody-directed radiopharmaceuticals.

3.      Other Product-related Partnerships: Earlier this year, Telix inked a product development partnership with Therapeia GmbH & Co KG, through which the group will add Therapeia’s ACD-101 theranostic program for glioblastoma to its pipeline of advanced theranostic radiopharmaceutical products. Telix also indicated about an option to acquire Therapeia under pre-agreed terms.

Given the radiopharmaceutical space and advances to oncology treatments, and Telix product pipeline and other company-wide developments, it would be interesting to have a watch on this player.

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