Telix Completes Acquisition of RLS (USA) Inc.

Rhea-AI Summary

Telix Pharmaceuticals (ASX: TLX, Nasdaq: TLX) has completed the acquisition of RLS (USA) Inc., America's only Joint Commission-accredited radiopharmacy network. The acquisition, valued at US$230 million upfront with potential additional US$20 million in milestone-based payments, includes a network of over 30 radiopharmacies and more than 100,000 square ft of licensed expansion space.

RLS will operate as a standalone business within Telix Manufacturing Solutions (TMS), joining other key brands like ARTMS, IsoTherapeutics, and Optimal Tracers. The integration enhances Telix's U.S. presence and distribution capabilities, enabling in-house cyclotron manufacturing using ARTMS QUANTM Irradiation System™ technology for radiometal production.

Positive

• Acquisition of America's only Joint Commission-accredited radiopharmacy network with 30+ locations
• Gains 100,000+ sq ft of licensed expansion space for radiometal production
• Enhances distribution capabilities in Telix's largest market
• Enables in-house cyclotron manufacturing capabilities
• Strengthens commercial infrastructure in the U.S. market

Negative

• Significant cash outlay of US$230 million from existing reserves
• Additional US$20 million contingent payment liability
• Integration risks with existing operations

Insights

Financial Analyst

This $250 million acquisition marks a transformative moment for Telix, substantially strengthening its position in the U.S. radiopharmaceutical market. The deal's structure, with $230 million upfront and $20 million in performance-based payments, reflects a balanced approach to value creation and risk management.

The strategic value extends beyond mere distribution capabilities. RLS's network of 30+ radiopharmacies provides Telix with immediate scale and operational leverage in the U.S. market. The 100,000 square feet of licensed expansion space represents significant untapped potential for radiometal production, offering both vertical integration benefits and new revenue streams through third-party partnerships.

Key value drivers include:

• Immediate enhancement of distribution infrastructure in Telix's largest market
• Integration of specialized radiopharmaceutical expertise
• Potential for cost optimization through in-house cyclotron manufacturing
• Revenue diversification through multi-vendor relationships
• Scalable platform for future growth in radiopharmaceutical production

The decision to maintain RLS as a standalone business within Telix Manufacturing Solutions demonstrates strategic foresight, preserving valuable third-party relationships while enabling operational synergies. This structure should minimize integration risks while maximizing the potential for cross-selling and operational efficiencies.

The acquisition's timing aligns with growing demand for radiopharmaceuticals in both diagnostic and therapeutic applications, positioning Telix to capture increased market share in this rapidly expanding sector. The enhanced manufacturing capabilities, particularly in radiometals, could provide a significant competitive advantage as new radiopharmaceutical products enter the market.

MELBOURNE, Australia and INDIANAPOLIS, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Telix Pharmaceuticals Limited (ASX: TLX, Nasdaq: TLX, Telix, the Company) today announces it has completed the acquisition of RLS (USA) Inc. (RLS; RLS Radiopharmacies), America’s only Joint Commission-accredited radiopharmacy network distributing PET¹, SPECT² and therapeutic radiopharmaceuticals.

The acquisition immediately enhances Telix’s presence in the United States (U.S.), with a network of over 30 radiopharmacies³ dispensing radiopharmaceuticals manufactured by Telix and other companies, while bringing a team of highly-skilled and multi-disciplinary radiopharmaceutical professionals into the Company.

The acquisition is part of Telix’s strategy to establish an integrated radiopharmaceutical ecosystem, enhancing its ability to deliver novel therapeutic and diagnostic radiopharmaceuticals to patients. The RLS footprint of over 100,000 square ft of appropriately licensed expansion space provides the opportunity to build a next-generation radiometal production network to benefit Telix, select commercial partners, and patients.

RLS will continue to operate under the same name and as a standalone business within Telix Manufacturing Solutions (TMS), which includes other key Telix brands with multi-vendor and third-party relationships such as ARTMS, IsoTherapeutics and Optimal Tracers.

The addition of RLS’s operations will significantly strengthen Telix’s commercial infrastructure and distribution capabilities in its largest market, including the capacity to undertake in-house cyclotron manufacturing powered by Telix’s ARTMS QUANTM Irradiation System™ (QIS™) cyclotron technology, enabling standardized, high-efficiency and cost-effective production of radiometals.

Dr. Christian Behrenbruch, Telix Managing Director and Group Chief Executive Officer, said, “We are pleased to officially welcome the RLS team to Telix. The completion of this acquisition marks a milestone in our journey to become the leader in radiopharmaceuticals, as the RLS network significantly boosts our existing in-house and partner capabilities. With RLS’s distribution and operational expertise, Telix is strongly positioned to bring our growing portfolio of innovative products to more patients across the U.S.”

Stephen Belcher, RLS Chief Executive Officer, added, “The RLS team is delighted to be joining Telix, as we combine our 40-year history in radiopharmaceuticals with Telix’s growing investment in its North American footprint. Together we can accelerate the availability of transformative radiopharmaceuticals and build on our respective commitments to innovative patient care. We are excited to be part of the Telix story going forward.”

Acquisition Details

Under the previously disclosed terms of the transaction⁴, Telix has acquired 100% ownership of RLS (USA) Inc. The purchase price comprised of upfront cash consideration of US$230 million before adjustments for cash and cash equivalents (net of restricted cash); debt and debt equivalents; transaction expenses; and working capital, and deferred cash consideration up to a maximum of US$20 million, contingent on achievement of certain milestones related to demonstration of accretive financial and operational performance during the four-quarters following closing. The acquisition and related transaction costs were funded from existing cash reserves.

About Telix Pharmaceuticals Limited

Telix is a biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals and associated medical technologies. Telix is headquartered in Melbourne, Australia, with international operations in the United States, Canada, Europe (Belgium and Switzerland), and Japan. Telix is developing a portfolio of clinical and commercial stage products that aims to address significant unmet medical needs in oncology and rare diseases. ARTMS, IsoTherapeutics, Lightpoint, Optimal Tracers and RLS are Telix Group companies. Telix is listed on the Australian Securities Exchange (ASX: TLX) and the Nasdaq Global Select Market (Nasdaq: TLX).

Telix’s lead prostate imaging product, gallium-68 (⁶⁸Ga) gozetotide injection (also known as ⁶⁸Ga PSMA-11 and marketed under the brand name Illuccix®), has been approved by the U.S. Food and Drug Administration (FDA)⁵, by the Australian Therapeutic Goods Administration (TGA)⁶, and by Health Canada⁷. Telix has received a positive decision on its Marketing Authorization Application (MAA) for Illuccix submitted in Europe⁸.

Telix’s osteomyelitis (bone infection) imaging agent, technetium-99m (^99mTc) besilesomab, marketed under the brand name Scintimun®, is approved in 32 European countries and Mexico. Telix’s miniaturized surgical gamma probe, SENSEI®, for minimally invasive and robotic-assisted surgery, is approved in the U.S., having been registered with the FDA and has attained a Conformité Européenne (CE) Mark for use in the European Economic Area for the intra-operative detection of sentinel lymph nodes (SLNs). No other Telix product has received a marketing authorization in any jurisdiction.

Visit www.telixpharma.com for further information about Telix, including details of the latest share price, ASX and SEC filings, investor and analyst presentations, news releases, event details and other publications that may be of interest. You can also follow Telix on LinkedIn, X and Facebook.

Telix Investor Relations

Ms. Kyahn Williamson
Telix Pharmaceuticals Limited
SVP Investor Relations and Corporate Communications
Email: kyahn.williamson@telixpharma.com

This announcement has been authorised for release by the Telix Pharmaceuticals Limited Disclosure Committee on behalf of the Board.

Legal Notices

You should read this announcement together with our risk factors, as disclosed in our most recently filed reports with the Australian Securities Exchange (ASX), U.S. Securities and Exchange Commission (SEC), including our registration statement on Form 20-F filed with the SEC, or on our website.

The information contained in this announcement is not intended to be an offer for subscription, invitation or recommendation with respect to securities of Telix Pharmaceuticals Limited (Telix) in any jurisdiction, including the United States. The information and opinions contained in this announcement are subject to change without notification. To the maximum extent permitted by law, Telix disclaims any obligation or undertaking to update or revise any information or opinions contained in this announcement, including any forward-looking statements (as referred to below), whether as a result of new information, future developments, a change in expectations or assumptions, or otherwise. No representation or warranty, express or implied, is made in relation to the accuracy or completeness of the information contained or opinions expressed in the course of this announcement.

This announcement may contain forward-looking statements, including within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, that relate to anticipated future events, financial performance, plans, strategies or business developments. Forward-looking statements can generally be identified by the use of words such as “may”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “outlook”, “forecast” and “guidance”, or the negative of these words or other similar terms or expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements are based on Telix’s good-faith assumptions as to the financial, market, regulatory and other risks and considerations that exist and affect Telix’s business and operations in the future and there can be no assurance that any of the assumptions will prove to be correct. In the context of Telix’s business, forward-looking statements may include, but are not limited to, statements about: the anticipated benefits of Telix’s acquisition of RLS; the initiation, timing, progress and results of Telix’s preclinical and clinical trials, and Telix’s research and development programs; Telix’s ability to advance product candidates into, enroll and successfully complete, clinical studies, including multi-national clinical trials; the timing or likelihood of regulatory filings and approvals for Telix’s product candidates, manufacturing activities and product marketing activities; Telix’s sales, marketing and distribution and manufacturing capabilities and strategies; the commercialisation of Telix’s product candidates, if or when they have been approved; Telix’s ability to obtain an adequate supply of raw materials at reasonable costs for its products and product candidates; estimates of Telix’s expenses, future revenues and capital requirements; Telix’s financial performance; developments relating to Telix’s competitors and industry; and the pricing and reimbursement of Telix’s product candidates, if and after they have been approved. Telix’s actual results, performance or achievements may be materially different from those which may be expressed or implied by such statements, and the differences may be adverse. Accordingly, you should not place undue reliance on these forward-looking statements.

©2025 Telix Pharmaceuticals Limited. The Telix Pharmaceuticals®, Telix Group company, and Telix product names and logos are trademarks of Telix Pharmaceuticals Limited and its affiliates – all rights reserved. Trademark registration status may vary from country to country.

¹ Positron emission tomography.
² Single-photon emission computed tomography.
³ In January 2025, RLS completed the acquisition of Advanced Isotopes of Nevada, a Las Vegas-based radiopharmacy, now operating under Las Vegas Radiopharmacy Inc., a wholly-owned subsidiary of RLS.
⁴ Telix ASX disclosure 23 September 2024.
⁵ Telix ASX disclosure 20 December 2021.
⁶ Telix ASX disclosure 2 November 2021.
⁷ Telix ASX disclosure 14 October 2022.
⁸ Telix ASX disclosure 17 January 2025.

FAQ

What is the total value of Telix's acquisition of RLS (USA) Inc.?

The total acquisition value includes US$230 million upfront payment plus potential additional US$20 million in milestone-based payments, totaling up to US$250 million.

How many radiopharmacy locations does RLS bring to Telix (TLX)?

RLS brings a network of over 30 radiopharmacies to Telix's operations in the United States.

What is the expansion space acquired in the TLX-RLS deal?

The acquisition includes over 100,000 square feet of licensed expansion space for radiometal production.

How will RLS operate within Telix's corporate structure?

RLS will operate as a standalone business within Telix Manufacturing Solutions (TMS), maintaining its brand name alongside other Telix brands.

What are the milestone conditions for the additional US$20M payment in the TLX-RLS deal?

The additional US$20 million is contingent on achieving certain milestones related to accretive financial and operational performance during the four quarters following closing.