Melbourne-headquartered Telix Pharmaceuticals (ASX: TLX) has entered into an agreement to acquire IsoTherapeutics Group, a specialty radiopharmaceutical development and bioconjugation firm, based in Angleton, Texas.
Founded in 2005, IsoTherapeutics is a privately held, commercial-stage company, which provides radiochemistry and bioconjugation development and contract manufacturing services to many companies in the radiopharmaceutical industry, including Telix.
In line with Telix’s continued investment in the vertical integration of supply chain, manufacturing and development capabilities, the acquisition is expected to further enhance Telix’s in-house drug development capabilities. A key driver for the acquisition is to enable Telix to bring select aspects of its development programs in-house, with the goal of reducing cost and time to achieve technical milestones.
The acquisition will also expand Telix’s U.S. manufacturing footprint with a site that includes a GMP1 clean room and production infrastructure suitable for clinical use. The site also has extensive capacity to process a wide variety of therapeutic isotopes used in Telix’s development portfolio.
The acquisition is highly synergistic with Telix’s vertical integration strategy and is expected to:
The addition of IsoTherapeutics will be complementary to - and increase the overall capabilities of - the company alongside the Optimal Tracers laboratory, radiochemistry development and clinical dose production facility in Sacramento, California and its large-scale production facility in Brussels South, Telix Manufacturing Solutions.
Following closing of the acquisition, IsoTherapeutics will continue to provide development and manufacturing services to its existing customer base and may continue to provide services to Telix’s strategic partners and collaborators. Telix expects to realise potential cost savings from bringing radiochemistry-related research and development (R&D) activities in-house and as such the transaction is expected to have a non-material positive impact on the Group’s earnings.
“With the agreement to acquire IsoTherapeutics I am pleased to welcome a team of highly recognised industry leaders in bioconjugation and radiochemistry to Telix, as well as further expand our manufacturing footprint in the US,” Managing Director and Group CEO of Telix, Dr. Christian Behrenbruch, said.
“This acquisition enhances our business with highly-sought-after skills, capabilities and facilities that are very much central to our development activities.”
The purchase price comprises US$8 million (AU$12.2 million) upfront, which is payable at closing in the form of US$2 million (AU$3.0 million in cash) and US$6 million (AU$9.2 million) in ordinary shares, equating to approximately 823,481 shares