Australia's Telix Pharma agrees to buy Germany's ITM Isotope for about $1.65 billion

Sept 21 — Australia's Telix Pharmaceuticals said on Monday it has agreed ​to acquire Germany-based ITM Isotope Technologies Munich SE for about $1.65 billion on a cash- and debt-free ‌basis, further boosting its radiopharmaceutical ambitions.

After adjustments, ITM shareholders are expected to ⁠receive about $1.25 billion in ​Telix shares at $11.84 per share.

ITM's ⁠commercial-scale, profitable isotope production business contributes significantly to ‌cash generation while ‌strengthening Telix's isotope supply chain for its therapeutics pipeline, the ⁠Australian firm said.

The target ⁠company's pipeline includes ITM-11 (177Lu-edotreotide), a novel therapeutic candidate for gastroenteropancreatic neuroendocrine tumors, which has completed Phase 3 development.

The deal also includes contingent consideration of up to $700 million, payable upon achievement of specified regulatory approvals ‌and sales milestones for ITM-11.

Upon completion, ​Telix shareholders will own about 76.3% of Telix shares, while ITM shareholders will own around 23.7%.

The combined organization is expected to generate unaudited pro forma 2026 revenue and income exceeding $1.3 billion, based on management estimates.

The company expects operating earnings to turn positive from ​2027, driven by higher production, cost savings, and improvements to ‌its drug pipeline. ‌Approval ⁠of ITM-11 could provide an additional near-term boost from high-margin treatment sales.

Telix's board has approved the transaction, and 90% of ITM stakeholders backed it as of signing.

Telix ‌shares slipped nearly 6% ​to A$16.82 per share in ‌early trade.

(Reporting by ⁠Sneha Kumar ​in Bengaluru; Editing by Aurora Ellis and Clarence Fernandez and ​Rashmi Aich)

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