Telix Pharmaceuticals expands US manufacturing ops with IsoTherapeutics acquisition

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Telix Pharmaceuticals Limited announced its agreement to acquire IsoTherapeutics Group, a specialty radiopharmaceutical development and bioconjugation firm headquartered in Angleton, Texas.

Founded in 2005, IsoTherapeutics is a privately held company providing radiochemistry and bioconjugation development, and contract manufacturing services, including to Telix.

This acquisition aligns with Telix’s commitment to vertical integration, aiming to bolster its in-house drug development capabilities, the ASX-listed company said in a media release.

A central objective of the acquisition is to internalise select aspects of Telix’s development programs, aimed at expediting technical milestones and reducing associated costs.

Additionally, Telix anticipates expanding its US manufacturing footprint through IsoTherapeutics, leveraging its GMP1 clean room and production infrastructure suitable for clinical use.

IsoTherapeutics’ facility is also equipped to process various therapeutic isotopes integral to Telix’s development portfolio.

The strategic rationale behind the acquisition encompasses strengthening Telix’s innovation and manufacturing scalability, facilitating clinical trials, exerting greater control over the isotope supply chain, and establishing a centre of excellence in GMP bioconjugation and isotope processing.

IsoTherapeutics’ inclusion is expected to complement Telix’s existing capabilities, augmenting the overall efficiency and effectiveness of its operations.

Dr Christian Behrenbruch, managing director and Group CEO of Telix, expressed enthusiasm for the acquisition, citing the addition of IsoTherapeutics’ esteemed team and facilities as pivotal to Telix’s expansion efforts, particularly within the US market.

“This acquisition enhances our business with highly-sought-after skills, capabilities and facilities that are very much central to our development activities,” Dr Behrenbruch stated.

Dr R. Keith Frank, president and CEO of IsoTherapeutics, echoed this sentiment, emphasising the alignment between IsoTherapeutics’ expertise and Telix’s strategic goals.

“The opportunity to now become part of the Telix Group of companies, a global leader in the field, provides an excellent platform for our employees, partners and customers to continue to expand the expertise and facilities at IsoTherapeutics,” Dr Frank explained.

Under the terms of the agreement, the purchase price comprises an upfront payment of USD 8 million (AUD 12.2 million), including USD 2 million (AUD 3.0 million) in cash and approximately 823,481 ordinary shares equating to USD 6 million (AUD 9.2 million).

Additional performance-related milestone payments totaling USD 5 million (AUD 7.6 million) are contingent upon meeting specified conditions within twelve months of closing.

Furthermore, a two-year revenue-sharing arrangement based on IsoTherapeutics’ existing customer revenue is anticipated, with estimated cash payments of approximately USD 0.6 million (AUD 0.9 million).

The acquisition remains subject to customary conditions, including regulatory approvals.