Telix’s growth momentum continues

Telix’s growth momentum continues

In this week’s video insight, I discuss the growth of Telix Pharmaceuticals (ASX:TLX). When the Montgomery Fund, The Montgomery [Private] Fund, and the Australian Eagle Trust Long Short Funds first invested in TLX, the share price was around A$11. Since then, the company’s share price has risen to A$26.75 with a market capitalisation of A$9 billion.

TLX specialises in radiation imaging and therapy technologies for cancer treatment. It’s FDA-approved PSMA-PET imaging agents, Illuccix and Gozellix, have contributed to the company’s strong growth while also solidifying TLX’s position in the diagnostics and therapy sector of the oncology industry. 

Beyond organic growth, TLX has strategically expanded through acquisitions in radio-guided surgery, radio-pharmaceuticals, and supply chain enhancements. 

Despite recent U.S. tariff announcements and an FDA setback, TLX remains resilient due to its diversified manufacturing and its limited reliance on rare earth minerals. 

Transcript:

Hello, I’m David Buckland and welcome to this week’s video insight, with a focus on Telix Pharmaceuticals (ASX:TLX).

When the Montgomery and Australian Eagle’s funds purchased TLX a little under two years ago, the prevailing share price was around $11. Since then, TLX has exceeded expectations, with its share price rallying to $26.75 as of the 28th of April 2025, and its market capitalisation is now at A$9 billion.

As a reminder, TLX targets radiation imaging and therapy technologies which have the potential to transform the way clinicians can find and manage cancer to inform treatment decisions and deliver personalised therapy.  

Its first commercial product, Illuccix which focuses on urologic oncology, was launched in 2022 after approval for use in Australia, Canada and the U.S. Reimbursements in the U.S. came into effect on 1 July 2022, and the company’s financials have been trending very positively ever since.

TLX is the only company with two PSMA-PET imaging agents approved from the U.S. Food and Drug Administration (FDA) being Illuccix and Gozellix, and this broadens patient choice and reach.

Together with strong organic growth, TLX has made several acquisitions focused on radio-guided surgery, therapeutic radiopharmaceuticals, supply chain and security enhancement of diagnostic isotopes as well as U.S. manufacturing and distribution. 

Together with third party manufacturing sites in the U.S., TLX is confident the international tariffs announced by the U.S. Government on 2 April 2025 will have little impact on their operations. Importantly, TLX does not rely on rare earth elements of the kind utilised in semi-conductor supply chains.

The recent purchase of RLS Radiopharmacies, for example, adds an annualized US$200m to the company’s revenue line; and importantly TLX is well advanced in the process of broadening its end market from prostate to kidney to brain cancer, and that is despite today’s setback from the U.S. Food and Drug Administration (FDA).

The table below details TLX quarterly revenue in U.S. Dollars over the past two years, and the quarterly growth figure on the previous quarter. TLX revenue line has jumped 2.8-fold from US$67m in the March 2023 quarter to US$186m in the March 2025 quarter, and annual revenue is expected to jump from US$330m in calendar 2023 to about US$800m in calendar 2025.

Overall, the TLX platform appears to have a lot of potential growth ahead.

That’s all I have time for this week. Please continue to follow us on Facebook and X. Thank you.

Disclaimer:

The Montgomery Fund, Montgomery [Private] Fund and Australian Eagle Trust Long Short Fund own shares in Telix Pharmaceuticals (TLX:ASX). This article was prepared 28 April 2025 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Telix Pharmaceuticals, you should seek financial advice. 

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Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience.
David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.