Telix Pharmaceuticals (ASX: TLX) has wrapped up its acquisition of IsoTherapeutics Group, LLC.
IsoTherapeutics is a privately held, commercial-stage company that provides radiochemistry and bioconjugation development and contract manufacturing services to numerous companies in the radiopharmaceutical industry, including Telix. The acquisition further enhances Telix’s in-house development capabilities and expands Telix’s United States (U.S.) manufacturing footprint with particular focus on bioconjugation and isotope processing.
“The acquisition of IsoTherapeutics Group is a significant milestone in Telix’s continued focus on vertical integration of development, supply and manufacturing and is highly complementary to Optimal Tracers (Sacramento, California), ARTMS (Vancouver) and our extensive commercial manufacturing infrastructure in Belgium,” Dr Christian Behrenbruch, Managing Director and Group CEO of Telix, said.
“In the IsoTherapeutics team, we have partnered with some of the leading experts in radiochemistry and I am excited at what we can achieve together going forward.”
Transaction Terms
The upfront consideration value is US$8.1 million (approximately A$12.5 million) of which US$6 million (approximately A$9.2 million) has been paid in equity through the issue of 717,587 fully paid ordinary Telix shares at AU$12.72 per share, with US$2.1 million (approximately AU$3.3 million) paid in cash.
A further US$5.0 million (approximately A$7.6 million) is payable in cash for performance-related milestone payments that are subject to meeting milestone conditions within twelve months of closing. The purchase price also includes a two-year revenue share based on actual revenue earned from existing third-party customers of IsoTherapeutics (total estimated cash payments approximately US$0.6 million (approximately A$0.9 million).