Edison Investment Research Limited: Edison issues outlook on Telix Pharmaceuticals (TLX)

London, UK, 3 April 2019

Edison issues outlook on Telix Pharmaceuticals (TLX)

Telix Pharmaceuticals has added significant value by acquiring ANMI, the developer of its TLX591-CDx prostate cancer imaging kit and underlying 'cold kit' technology. It also announced plans to accelerate its TLX591 prostate cancer therapeutic into Phase III, based on a third-party review of clinical data that formed part of the Atlab acquisition in September. Following the ANMI acquisition we increase our valuation to A$380m (vs A$303m) or A$1.74 per share (vs A$1.43 per share). FDA agreement to the TLX591 Phase III design would likely prompt a further valuation uplift.

We lift our valuation to A$380m (vs A$303m) or A$1.74/share (vs A$1.43/share). We have revised our model for the ANMI acquisition and the resultant move to 100% of global rights to TLX591-CDx (vs the prior US-only JV). We assume ex-US sales will match our US peak sales forecast of US$80m and an operating profit margin (before royalties) of 35% in the US and 25% in other territories. We will review our valuation if Telix gains FDA agreement to progress TLX591 to Phase III.

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