“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest biotechnology companies, has announced today it has withdrawn plans to raise USD$200 million (AUD$300 million) and list on the Nasdaq after finding the proposed discounted prices would not align with its duty to shareholders.

The news comes six months after the Melbourne-based biotech revealed to the ASX – where it has a market capitalisation of $5.4 billion – that it was considering an initial public offering (IPO).

In an announcement to the market today, Telix said it decided not to move forward with the transaction at the terms provided under current market conditions. The company also noted its intention to list on the Nasdaq was not based on the need to raise capital.

Telix also highlighted that since it first announced its intent to file in early January, the company has achieved “a number of commercially significant milestones”, including promising therapeutic trial results and the $188 million buyout of US-based therapeutic radiopharmaceuticals firm QSAM in May.

Three months ago, the company also acquired Canada-based radioisotope production tech firm ARTMS for $86 million.

“While this is not our desired outcome Telix’s strategic objectives must align with our duty to existing shareholders,” managing director and CEO Dr. Christian Behrenbruch said.

“I’d like to thank my team for the personal commitment and incredibly long hours put into this IPO process.”

Founded in 2015, Telix company manufactures Illuccix - a pharmaceutical used in the detection and diagnosis of prostate cancer. The radioactive diagnostic agent has been approved by the US Food and Drug Administration (FDA), the Australian Therapeutic Goods Administration (TGA) and Health Canada.

The company has grown its international operations to the US, Japan, Switzerland and Belgium, where a year ago it opened a world-class $21 million radiopharmaceutical nuclear medicine facility.

Telix’s market capitalisation has grown rapidly, having initially listed on the ASX in late 2017 with a $128 million valuation. At the time of writing, shares are trading at $16.64 each. Over the past 12 months, shares in TLX have soared by 65 per cent.

For the first quarter of FY24, Telix announced revenue was up 75 per cent year-on-year to hit $175 million. Gross profit also soared by 84 per cent to reach $115.4 million.

Operating profit was $28.5 million, up from a previous loss of $5.6 million. The company also posted a closing cash balance of $122.7 million.

Telix said it intends to provide regular revenue and business updates going forward, but noted it is not required to provide quarterly financial statements on an ongoing basis.

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