QSAM Biosciences, Inc.

Australian radiopharma company Telix Pharmaceuticals is acquiring radioisotope manufacturer RLS Radiopharmacies in another move to expand its presence in the US. Telix is budgeting $230 million up front for the purchase and potentially another $20 million in milestone payments. In exchange, Telix will take on RLS’ 31 radiopharmacies, designed to make and distribute clinical and commercial radiotherapies, located across 18 US states. Telix will also acquire RLS’ 100,000 square feet of space for future expansions, according to a Monday release. The acquisition is set to close in the first quarter of 2025, after which RLS will still operate and serve its existing customers as a standalone business. Wall Street analysts believe this is a move for Telix to solidify its identity as a radiopharma manufacturer and expect the company to further boost its capacity for isotope production. By combining Telix’s manufacturing platform and RLS’ radiopharmacy network, Telix is aiming to scale up production of isotopes and radiotherapies, as well as improve the supply of diagnostic devices such as PET scans, Telix’s CEO Christian Behrenbruch said in a statement. Telix plans on integrating a technology platform for rare metal and isotope production across each of the 31 radiopharmacies. Telix just bought such technology when it acquired the Canadian company ARTMS in March. RLS has a range of radiopharma-related services. It recently expanded into gallium-68 production for PET scans via a partnership with Eckert & Ziegler announced in April. RLS also has CDMO services, recently expanding its in-house manufacturing at eight of its 31 sites in October last year. When Telix’s purchase is closed, RLS will operate independently under Telix Manufacturing Solutions, an umbrella brand that includes other manufacturers like IsoTherapeutics. Telix acquired radiochemistry and bioconjugation manufacturer IsoTherapeutics in April this year. As a part of Telix’s recent spending spree, in May it also snapped up the cancer radiopharma company QSAM Biosciences and its clinical pipeline. QSAM’s lead radiopharma asset is called samarium-153-DOTMP for pain management in patients with bone metastases and osteosarcoma. The radiopharma space is heating up with many players making moves to increase their pipelines and manufacturing capacity. Earlier this month, Sanofi spent $110 million in licensing deals with RadioMedix and Orano Med. Novartis allocated $1 billion to buy Mariana Oncology, according to a May announcement. Other pharma companies like AstraZeneca , Bristol Myers Squibb and Eli Lilly have also expanded their respective stakes in radiotherapies.

Telix Pharmaceuticals has announced its agreement to acquire RLS (USA), the only Joint Commission-accredited radiopharmacy network in the U.S. The acquisition, valued at $230 million with additional performance-based payments, is expected to close in early 2025, pending regulatory and shareholder approvals. The transaction will expand Telix’s North American manufacturing and distribution capabilities for radiopharmaceuticals, with a focus on building a next-generation radiometal production network. The deal gives Telix access to RLS' 31 radiopharmacies across major U.S. cities, expanding its ability to produce and deliver therapeutic and diagnostic radiopharmaceuticals. Telix plans to leverage RLS’ facilities to scale up production of key isotopes and meet increasing demand. RLS will continue to operate independently as part of Telix Manufacturing Solutions, while maintaining its existing customer base. Earlier this year, Telix agreed to acquire Canadian radioisotope production company ARTMS, strengthening its diagnostic isotopes supply chain. The $42.5 million deal included ARTMS' cyclotron-based isotope production platform and rare metal stockpile. ARTMS’ technology supports efficient production of key medical isotopes and will aid in developing therapeutic isotopes like actinium-225. These deals follow Telix’s recent acquisitions of IsoTherapeutics and QSAM Biosciences, also steps in expanding its U.S. manufacturing and radiopharmaceutical capabilities.

The Australian biotech company has a market cap of A$5.7bn ($3.77bn). Credit: Shutterstock/DestinaDesign. In the latest development in the ever-changing biotech IPO landscape, Telix Pharmaceuticals has withdrawn a proposed US listing on Nasdaq . Recommended Buyer's Guides Buyer's Guide Leading Guide to Compliance Software for the Pharmaceutical Industry Buyer's Guide Leading Guide to Clinical Packaging Companies in contract Manufacturing for the Pharmaceutical Industry The decision to pull its IPO was announced on the day it was due to be listed, via a 14 June press release. Australia-headquartered Telix cited that its board did not move forward with its plans due to “current market conditions”, adding that the listing “was not predicated on the need to raise capital”. The radiopharma specialist, currently listed on the Australian Securities Exchange (ASX) since its IPO in its home country in 2017, was on course to raise a potential $232m via American depository shares (ADSs), according to a SEC filing . Telix’s group CEO Christian Behrenbruch said: “While this is not our desired outcome, Telix’s strategic objectives must align with our duty to existing shareholders.” The biotech company, which has a market cap of A$5.7bn, resumed trading on the ASX on 14 June after being halted the day before. See Also: Novavax seeks FDA approval for updated Covid-19 vaccine FDA approves Amgen’s BLINCYTO for acute lymphoblastic leukaemia Telix first laid out its IPO plans in early January this year, after which its share price increased 42% until its listing U-turn. In that time, the company agreed to acquire QSAM Biosciences for $123.1m , along with buying CDMO IsoTherapeutics for a more modest $13.6m. Shares have also been bumped due to “positive therapeutic pipeline data readouts” and product approval submissions to the US Food and Drug Administration for kidney cancer agent TLX250-CDx (Zircaix) and prostate cancer agent TLX007-CDx. The abandonement of plans for an IPO from a radiopharma biotech ccompany is at odds with the field’s recent growth. Venture financing for radiopharmaceutical drugs witnessed an increase of approximately 550% from $63m in 2017 to $408m in 2023 in terms of total deal value in the US, according to GlobalData’s Pharma Intelligence Centre Deals Database. GlobalData is the parent company of Pharmaceutical Technology. Big pharma has made plays for the space in the past year too, with Eli Lilly, Novartis and Bristol Myers Squibb inking deals ranging from $1.4bn to $4.1bn to acquire radiopharma specialists. The number of biotech IPOs has been steadily decreasing after a boom in 2020 and 2021, although 2024 has seen an uptick in activity. Oncology biotech Boundless Bio raised $100m in an IPO in March this year, whilst Kyverna Therapeutics, Metagenomi and Alto Neuroscience have all made the jump too. CG Oncology generated the largest US pharma IPO so far this year , raising $380m in January. Telix’s U-turn, however, is an indication that the IPO comeback is still stuttering.