The Telix Pharmaceuticals Ltd (ASX: TLX) share price is sliding 4.3% today after the company released its FY20 results. The broader S&P/ASX 200 (ASX: XJO) is currently down 2.3% at the time of writing.
Telix is a late clinical-stage radiopharmaceutical company focused on the development of diagnostic and therapeutic products that use Molecularly Targeted Radiation (MTR).
What did Telix report?
Despite the challenges from COVID-19, Telix achieved some fairly significant milestones throughout the year, including:
- Acquiring a licensed production facility in Seneffe, Belgium;
- Securing the China Grand Pharma transaction of up to $400+ million in value, which will deliver a long-term clinical and commercial partner for the Greater China region;
- The acquisition of TheraPharm, which will broaden the development pipeline to hematologic oncology, bone marrow transplantation and other rare diseases; and
- Multiple strategic collaborations, including Varian Medical Systems, RefleXion, Mauna Kea Technologies.
Prostate cancer imaging
Sales in TLX591-CDx, Telix’s prostate cancer imaging kit, were materially affected by COVID-19 during the year. However, the company managed to deliver roughly 9,500 individual patient doses prepared from over 3,700 kits.
Over the full-year, Telix received $3.9 million in cash receipts from the kit sales, which represented a 15% increase on the prior corresponding period (pcp).
An FDA mid-cycle review meeting is scheduled for 2 March 2020.
Telix’s financials
FY20 product-related revenue saw an increase of 49% over the period, up to $5.2 million, while expenditure increased by 9% to $23.1 million. The uptick in expenses reflects the preparation for commercial launch and the company’s pipeline R&D expansion.
Telix’s cash reserves were up 75% on the pcp to $77.9 million, partly bolstered by a $69 million cash injection resulting from its partnership with China Grand Pharma.
Telix’s comprehensive loss widened to $44.5 million for the year, an increase of 60% on the pcp.
ZIRCON clinical trial
One of Telix’s major value events anticipated for 2021 is the completion of its ZIRCON Phase 3 trial. The aim of the trial is to test the sensitivity and specificity of PET/CT imaging with TLX250-CDx to non-invasively detect clear cell renal cell carcinoma (ccRCC) in patients with indeterminate renal masses in comparison with surgical resection.
36 sites are now participating and the company estimates completion of patient recruitment by mid-2021.
Bone marrow conditioning
Another important development is Telix’s trial for Targeted Radiotherapy for Amyloid Light Chain Amyloidosis (TRALA).
The disease is rare with a particularly poor prognosis (the median survival is 11 months if untreated) and the company estimates a total addressable market of US$600 million in the US and Europe.
The study aims to test the safety and toxicity of 90Y-besilesomab as the sole BMC regime for autologous haematopoietic stem cell transplant (HSCT) in patients with systemic amyloid light chain amyloidosis (SALA). With the study complete, the company has indicated that data readout is imminent.
My take
It looks like there are some exciting developments on the horizon for Telix in 2021 and beyond. However, in a complex industry such as this, I find it hard with my own background to get a solid understanding of the underlying technology.
One ASX healthcare share I understand a bit better is Volpara Health Technologies Ltd (ASX: VHT), which you can read about in this in-depth analyst report.
