Telix cancels $200M Nasdaq IPO plan last minute

Telix Pharmaceuticals, a radiopharmaceutical company listed on the Australian Securities Exchange since 2017, made a surprising decision to cancel its Nasdaq listing at the last moment. The company initially intended to offer 17 million American Depository Shares (ADSs) on Nasdaq, which was expected to generate $183 million, or $211 million if underwriters exercised their option to purchase an additional 15% of ADSs. However, on June 14, Telix announced it was withdrawing from the Nasdaq IPO.

Telix explained in a statement that the decision was not related to a need for raising capital. The company's management and board believed that the terms provided under current market conditions were not favorable. They felt that the proposed discounts did not align with their duty to existing shareholders. Christian Behrenbruch, Telix’s Managing Director and Group CEO, commented that although the outcome was not what they had desired, the company’s strategic objectives must align with their commitment to shareholders. He also acknowledged the team's hard work and long hours dedicated to the IPO process.

Since the beginning of the year, Telix's share price has significantly increased from 9.53 Australian dollars to AU$16.46 as of the market close on Wednesday. The company attributed this rise to positive developments in its radiopharmaceutical pipeline and successful strategic acquisitions, such as those of ARTMS and QSAM Biosciences. Additionally, Telix has submitted FDA approval applications for its renal cell carcinoma radiodiagnostic Zircaix and prostate cancer imaging agent TLX007-CDx.

Telix emphasized that it is already a profitable, cash-generative company with sufficient earnings and a strong balance sheet to achieve its primary goals. These objectives include launching Zircaix, TLX007-CDx, and the brain cancer imaging agent Pixclara in the United States. Furthermore, Telix's leading radio antibody-drug conjugate, TLX591, is currently undergoing a phase 2/3 global study for prostate cancer patients.

Earlier this year, there was a resurgence of interest in biotech IPOs during January and February. However, an analysis by Fierce Biotech using S&P Capital IQ data in early May showed that only CG Oncology was still trading above its IPO price among the recent biotech IPOs. While the IPO market appeared to slow down in the spring, a few companies have shown renewed interest in a Nasdaq listing in recent weeks. For example, Rapport Therapeutics went public on June 7 at an offer price of $17 per share and saw its shares rise to $23.05 by June 13.

Telix’s decision to withdraw its Nasdaq listing highlights the complexities and challenges that biotech companies face in navigating the public markets. Despite the recent interest in biotech IPOs, market conditions and company-specific factors can significantly influence the outcomes of such listings. For Telix, the focus remains on aligning its strategic objectives with shareholder value, leveraging its current profitability and strong market position to achieve its growth and product launch goals.