Telix Pharmaceuticals has bought US-based radioisotope manufacturer RLS Radiopharmacies to expand its manufacturing footprint in the US.
The acquisition will cost the Australian radiopharma company $230m upfront, with an additional $20m tied to milestone payments. In return, Telix will gain 31 of RLS’s licensed radiopharmacies across the US, establishing a radiometal production and distribution network for key therapeutic and diagnostic isotopes, along with last-mile delivery of finished doses to target markets.
Telix plans on deploying its isotope production platform, QUANTM Irradiation System (QIS) cyclotron, across its new radiopharmacies. Telix inherited the technology from Canadian company ARTMS, which it acquired in March 2024. The system produces medical isotopes used in Telix’s drug candidates such as zirconium-89 (89Zr), copper-64 (64Cu), and gallium-68 (68Ga). One of Telix’s lead candidates is the US Food and Drug Administration (FDA)-approved Illuccix (gallium-68 gozetotide), used for prostate cancer imaging.
Telix was in the news last quarter when it abandoned a proposed listing on Nasdaq, citing “market conditions” at the time as the reason. The company first shared its IPO plans in January 2024 and was predicted to increase up to $232m via American depository shares (ADSs), as per a SEC filing. Despite Telix’s U-turn, 2024 has seen a slow increase in the number of biotechs going public. This includes drugmakers Bicara Therapeutics, Zenas BioPharma, and MBX Biosciences, who all went public on Nasdaq this month.
The radiopharma arena is gaining interest, with several high-profile deals spotlighting its therapeutic promise. Eli Lilly sealed its interest in the space with a $1.4bn acquisition of POINT Biopharma in October 2023. The pharma giant also acquired radiopharmaceutical company Radionetics Oncology in July 2024 for $140m, reinforcing its status in the space.
The largest deal was seen by Bristol Myers Squibb in December 2023 when it signed a definitive agreement for the acquisition of all of the outstanding shares of common stock of RayzeBio, costing nearly $4.1bn. Novartis is also a major player in the field, making its own radiopharma acquisition of Mariana Oncology for $1.75m in May 2024.
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As the space continues to boom, experts in the space have raised challenges in the manufacture and logistics of this drug class. The short half-lives of isotopes mean that sophisticated infrastructure is required for development.
Telix’s CEO Christian Behrenbruch said: “Our vision is to build a radiometal production and distribution network fit for the future. By combining the ARTMS platform and the RLS network, we can scale up the production of key isotopes and build a stable and consistent supply of PET and SPECT diagnostic tracers, along with therapeutic radiopharmaceuticals across the US for the benefit of Telix, our partners and the patients we serve.”
The acquisition is expected to close in Q1 2025. After that, RLS will operate independently under Telix Manufacturing Solutions (TMS), which includes other brands such as IsoTherapeutics and Optimal Tracers. Telix acquired speciality radiopharmaceutical development and bioconjugation company IsoTherapeutics in February 2024.
