Telix to buy Germany's ITM Isotope in $1.65bn radiopharma deal

Telix Pharmaceuticals (TLX) has agreed to acquire Germany's ITM Isotope Technologies Munich for about $1.65bn on a cash- and debt-free basis, in a deal that deepens the Australian company's push into radiopharmaceuticals.

After adjustments, ITM shareholders are expected to receive about $1.25bn in Telix shares, priced at $11.84 each. The agreement also includes contingent consideration of up to $700mn, payable if ITM-11 (177Lu-edotreotide) meets specified regulatory approvals and sales milestones. The therapy, a candidate for gastroenteropancreatic neuroendocrine tumors, has completed Phase 3 development.

Telix said ITM's commercial-scale, profitable isotope production business would contribute significantly to cash generation while strengthening the supply chain for its therapeutics pipeline.

On completion, Telix shareholders will own about 76.3 per cent of the enlarged group and ITM shareholders about 23.7 per cent. Management estimates that the combined organization will generate unaudited pro forma 2026 revenue and income of more than $1.3bn.

Telix expects operating earnings to turn positive from 2027, driven by higher production, cost savings and improvements to its drug pipeline. Approval of ITM-11 could provide a further near-term boost through high-margin treatment sales.

Telix's board has approved the transaction, and 90 per cent of ITM stakeholders had backed it by the time of signing. Investors were less enthusiastic, with Telix shares slipping almost 6 per cent to A$16.82 in early trading.