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A surge in September-quarter earnings has led Melbourne-based Telix Pharmaceuticals (ASX: TLX) to upgrade its full-year revenue forecast to a high of US$820 million ($1.26 billion) as the company’s growth was driven by the launch of new products into the market over the past year.
Telix has reported a 53 per cent increase in third-quarter revenue to US$206 million ($318.2 million) as sales of the group’s prostate cancer imaging agents Illuccix and Gozellix gained traction.
Announcing the earnings update after the share market closed this afternoon, Telix is targeting revenue of between US$800 million and US$820 million for the full year – up from revenue guidance of US$770 million to US$800 million announced with the release of its half-year results in August.
“We believe this is a solid result, particularly in light of the reimbursement dynamics during the quarter,” says Telix CEO Dr Christian Behrenbruch.
The CEO is referring to the Transitional Pass-Through status given to Gozellix by the U.S. Centers for Medicare & Medicaid Services (CMS), which was a significant commercial milestone for Telix that provides price certainty for the product which is now fully reimbursed by CMS.
“Moreover, a 3 per cent increase in dose volumes suggests competitive pricing pressures are beginning to stabilise,” says Behrenbruch.
Telix is headquartered in Melbourne but has extensive operations in the US, where the group firmed up production capacity through the US$250 million acquisition of RLS (USA) Inc.
When revealing the company’s half-year results earlier this year, which saw revenue increase by 63 per cent to US$390.4 million ($603 million), Behrenbruch noted that Telix was well positioned as the only company with two FDA-approved PSMA-PET imaging agents.
“Telix has entered Q4 in a position of strength, supported by a growing customer base, two FDA-approved PSMA imaging agents and CMS reimbursement for Gozellix effective from 1 October in the US,” says the CEO in today’s revenue upgrade announcement.
“This differentiated two-product strategy enables us to expand market share across all customer segments, with Gozellix enhancing our production flexibility and providing customer choice based on patient reimbursement pathways.”
Illuccix is now approved in 19 European markets and the UK after Telix initiated a commercial launch for the product in the UK, Germany, France, Finland, Sweden, Norway and Denmark.
Shares in Telix Pharmaceuticals last traded at $14.36 each, valuing the company at $4.9 billion.
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