Telix Pharmaceuticals (TLX) agreed to acquire Germany-based ITM Isotope Technologies Munich in a deal potentially worth up to $2.35 billion, as the Australian company looks to strengthen its radiopharmaceutical operations.
Founded in 2004, ITM is a private company that focuses on therapeutic radioisotope production and radiopharmaceutical development. It has a distribution network spanning more than 65 countries.
Under the terms of the deal, Telix will acquire ITM for $1.65 billion upfront on a cash- and debt-free basis, including $1.25 billion, to be paid to sellers in 105.8 million Telix shares. Telix will also assume $302 million of net debt at closing.
The deal includes an additional consideration of up to $700 million, based on ITM's investigational radiopharmaceutical cancer treatment, ITM-11, achieving certain regulatory approvals and sales milestones, according to Telix.
ITM-11 is being evaluated in a second indication expansion phase 3 trial, with interim analysis expected in the first half of next year. Telix anticipates that, if regulators approve the product, it will accelerate its entry into the commercial therapeutic market and expand its presence in neuroendocrine tumors.
"By combining our complementary strengths, we will create a company with commercial scale, world-leading supply and the most exciting theranostic drug portfolio in the sector," Telix Chief Executive Christian Behrenbruch said in a statement. "Importantly, this combination further expands our late-stage therapeutic pipeline with two completed phase 3 trials and deepens radioisotope security."
Telix's Nasdaq-listed American depositary receipts were down 9.6% in premarket activity Monday.
The combined company is estimated to generate unaudited pro forma revenue and income of more than $1.3 billion for 2026. ITM logged annual revenue of $273 million last year, Telix said. The potential launch of ITM-11 could also generate additional high-margin therapeutic revenue in the near term, Telix said.
The transaction, which requires approvals from regulators and Telix shareholders, is expected to complete by the end of 2026.
Earlier this year, Telix entered into a collaboration with Regeneron Pharmaceuticals (REGN) to jointly develop and commercialize radiopharmaceutical therapies in a 50/50 cost- and profit-sharing model. Separately, Telix received approval from the US Food and Drug Administration for its new drug application for Pixclara, an amino acid positron emission tomography drug for brain cancer.
In July, the company said its full-year revenue was tracking at the top end of its guidance for $950 million to $970 million, plus $40 million in nonrefundable other income from Regeneron.
In the broader industry, Telix's radiopharmaceuticals competitor, Lantheus (LNTH), said last month it agreed to be acquired and taken private by Curium in an up to $8 billion deal.
