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

Telix Pharmaceuticals Acquires Germany’s ITM Isotope for $1.65 Billion

Acquisition Details and Strategic Impact

Deal Overview

Sept 21 (Reuters) - 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.

Business and Pipeline Synergies

Isotope Production and Supply Chain

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. 

Therapeutics Pipeline

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

Contingent Considerations

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

Ownership and Financial Projections

Shareholder Structure

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

Revenue and Earnings Outlook

Pro Forma Revenue Estimates

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

Operating Earnings and Growth Drivers

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.

Market and Stakeholder Reactions

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)