Telix Shares Slide 10% Despite 19% Revenue Growth as Investors Weigh the ITM Merger

Telix Pharmaceuticals Limited (NASDAQ: TLX) reported third-quarter revenue of $245 million, up 19% from a year earlier, and launched its new Pixclara brain cancer imaging agent. Investors still sold the stock. U.S. shares fell about 10% to $10.03 in premarket trading Thursday as growth flattened from the prior quarter and concerns lingered over Telix’s planned $1.65 billion merger with Germany’s ITM Isotope Technologies Munich.

Key Points

• Q3 revenue rose 19% year over year to $245 million but slipped about 1% from Q2’s $247 million.
• Precision Medicine revenue, led by the prostate cancer imaging agents Illuccix and Gozellix, climbed 30% to $201 million.
• The FDA approved Pixclara as the first U.S. imaging agent for glioma, and the first commercial doses went out in September.
• Telix expects 2026 revenue and other income to exceed $1 billion. Shareholders vote on the ITM deal around December 1.

Telix Pharmaceuticals (NASDAQ: TLX) Keeps Growing, but More Slowly

Telix’s imaging business continues to drive results. Precision Medicine revenue jumped 30% from a year ago, and U.S. dose volumes for Gozellix and Illuccix rose 1% from the second quarter despite the usual summer slowdown. However, revenue from Telix’s TMS unit fell 6% to $44 million.

“Demand for both Gozellix and Illuccix remained strong during the quarter,” said Managing Director and Group CEO Dr. Christian Behrenbruch.

Even so, total revenue was essentially flat from the second quarter. That pause gave some investors a reason to take profits. The stock had rallied more than 80% in the two months after hitting a three-year low in February.

Pixclara and BiPASS Expand the Pipeline

Telix added a new growth driver with Pixclara, which the FDA approved as the first imaging agent for glioma in the U.S. “We achieved an important milestone with the FDA approval of Pixclara,” Behrenbruch said. Telix is also running a Phase 3 study to expand Pixclara’s label to brain metastases.

In prostate cancer, Telix completed enrollment of 350 patients in its Phase 3 BiPASS study. The study combines PSMA PET imaging with MRI before biopsy. The FDA has granted the program Fast Track designation and supports a path to a New Drug Application.

The ITM Merger Remains the Overhang

Much of the selling ties back to the ITM deal. Telix will pay $1.65 billion upfront, mostly in about $1.25 billion of new Telix shares, plus up to $700 million more tied to ITM-11 approvals and sales. The deal gives Telix control of its medical isotope supply and creates a fully integrated radiopharmaceutical company. Critics, however, point to shareholder dilution, ITM’s losses and a manufacturing-related FDA complete response letter for ITM-11.

Looking ahead, Telix expects 2026 revenue to land at the upper end of its $950 million to $970 million range, plus about $40 million of other income. It also narrowed R&D spending guidance to $240 million to $260 million. Analysts largely stayed positive, with Wedbush reiterating an outperform rating and a $22 price target.

Telix Pharmaceuticals (NASDAQ: TLX) Leads the PRISM Pharmaceuticals Index Lower

Telix is a member of the PRISM Pharmaceuticals Index, where it is one of the biggest decliners in early trading. The company has a market value of about $3.4 billion.