Telix secures $398m for kidney and brain cancer radiotherapies

Telix Pharmaceuticals, an Australia-based radiopharmaceutical company, recently raised $398 million (A$600 million) through the issuance of convertible bonds. These bonds, which can be converted into ordinary shares, will have an interest yield of 2% to 2.75% and will mature at the end of July 2029. The company plans to list these bonds on the Singapore Exchange Securities Trading Limited (SGX-ST).

Earlier this year, Telix had intended to go public on Nasdaq with an initial public offering (IPO) aimed at raising $232 million. However, the company decided against it due to market conditions, although it emphasized that the decision was not based on an urgent need for capital. Instead, the convertible bonds offer a low-cost financing option that will not dilute shares until they are converted in the future. The initial conversion price will be set at a 30% to 35% premium to Telix’s current share price on the Australian Securities Exchange, where it is already listed.

The funds raised from these bonds will be allocated to various projects, including label expansion studies for diagnostic imaging agents and pivotal trials for kidney and brain cancer therapies. Telix has been making significant strides in these areas. In early June, the company submitted a biologics license application (BLA) to the US Food and Drug Administration (FDA) for TLX250-CDx (89Zr-DFO-girentuximab), a radio-diagnostic PET1 agent aimed at kidney cancer. Additionally, a lutetium-based therapeutic candidate for kidney cancer is currently undergoing Phase II trials.

The company's brain cancer pipeline includes TLX101 and TLX101-CDx. TLX101 is in Phase I and Phase II trials, while a new drug application is being prepared for TLX101-CDx. This particular agent has received fast track designation from the FDA as there are no approved targeted PET imaging agents for gliomas at present.

Telix also has assets targeting prostate cancer, soft tissue sarcoma, and bone marrow conditioning.

Dr. Christian Behrenbruch, Telix’s group CEO, stated that the funds from the convertible bonds would provide additional financial flexibility to execute on the company’s strategic priorities and take advantage of upcoming opportunities in the rapidly expanding radiopharmaceutical market.

The radiopharmaceutical space is becoming increasingly competitive as its therapeutic potential gains recognition. Major pharmaceutical companies are making significant investments in this area. Eli Lilly has recently acquired POINT Biopharma for $1.4 billion and entered into a $140 million deal with Radionetics Oncology, which includes an option to purchase the partner for $1 billion. Additionally, Bristol Myers Squibb and Novartis have made substantial acquisitions in the radiopharmaceutical field, valued at $4.2 billion and $1.75 billion, respectively, over the past year.