Telix Pharmaceuticals (ASX:TLX) reached a highly anticipated milestone with US Food and Drug Administration (FDA) approval of its Pixclara brain cancer imaging agent, which will diversify the revenue stream of the company's precision medicine portfolio, Jarden said in a Monday note.
The approval should also help validate the company's research and development pipeline after investor confidence suffered following previous delays to certain products, the investment firm said.
Pixclara has initially been indicated to differentiate between recurrent and progressive gliomas from treatment-related changes in both adults and pediatric patients, but Telix has scope to apply for other label expansions such as improving radiation treatment planning in glioblastoma patients, and improving identification of recurrence in patients with brain metastases, Jarden said.
These two additional opportunities could see the market for the imaging agent expand to between $470 million and $665 million from a $95 million to $140 million range flagged by the company for the initial indication in the US, the equity research firm said.
Jarden maintained a buy rating on Telix, saying it remains a "catalyst-rich story" with multiple pipeline updates expected over the next 12 months. The investment firm also raised its target price on the company to AU$21 from AU$20.70 after increasing the base-case risk-weighting for Pixclara to 100% from 90%.
Telix Pharmaceuticals shares surged 10% in recent Tuesday trade.