ARTMS, based in
The acquisition of ARTMS is expected to further enhance the vertical integration of Telix’s supply chain and manufacturing by providing a greater level of control and security over each of the Company’s diagnostic isotopes.
ARTMS’ core technology platform is based on the QUANTM Irradiation System™ (QIS™), a complete cyclotron-based isotope production system that is designed to support high efficiency and cost-effective production of commercially important medical isotopes including zirconium-89 (89Zr), gallium-68 (68Ga), technetium‐99m (99mTc) and copper-64 (64Cu).
QIS has demonstrated industry-leading production yields and significantly outperforms conventional cyclotron target systems due to the unique intellectual property and target manufacturing processes that underpin it. Additionally, ARTMS’ portfolio of advanced cyclotron technologies will have immediate application and differentiation in the production of future commercially important alpha-emitting, therapeutic isotopes, including actinium-225 (225Ac) and astatine-211 (211At).
The strategic rationale for the acquisition stems from four key areas of commercial synergy between ARTMS and
- Support for the roll-out of Zircaix™1 (TLX250-CDx) kidney cancer imaging.
Telix is currently validating multiple production locations of large-scale 89Zr production inthe United States (U.S. ) using the QIS system and select manufacturing and pharmacy partners. ARTMS’ QIS is a significant enabler of production capacity and supply chain reliability that works by irradiating an yttrium-89 (89Y) target to produce sterile, filtered, purified and dissolved 89Zr that is ready for radiopharmaceutical use. ARTMS possesses a significant stockpile of ultra-pure 89Y to fabricate sufficient cyclotron targets to support this commercial application. - Ultra large-scale production of 68Ga to support Illuccix® lifecycle management. Illuccix® already supports limited use of cyclotron-produced 68Ga. ARTMS and
Telix have been collaborating since 20202 to evaluate the potential of higher curie-scale (Ci) production of Illuccix®. One of the goals of this acquisition is to enableTelix to deliver further improvement of Illuccix® margins and wider distribution through Telix’s unique pharmacy partnership model. ARTMS holds a commercially significant stockpile of zinc-68 (68Zn), which is irradiated to produce 68Ga. - Enhanced supply chain reliability of commercially useful cyclotron-produced diagnostic radionuclides such as 64Cu and 99mTc.
Telix will be working with select pharmacy networks and strategic partners to enhance the reliability and routine production of these isotopes following closing of the acquisition. In particular for 64Cu, for which no commercially viable production network currently exists in theU.S. , ARTMS has a substantial commercial stockpile of Nickel-64 (64Ni), the essential raw material for 64Cu production, which is in severely limited global supply. - Development of ‘next generation’ cyclotron targets to support the safe and high-yield production of therapeutic radionuclides. These include alpha emitters, such as 225Ac and 211At. This research and development (R&D) activity is highly aligned with Telix’s state-of-the-art research cyclotron footprint at Telix Manufacturing Solutions (TMS) in
Belgium .Telix plans to produce clinical trial quantities of 225Ac in-house by end-2024 and will align the ARTMS R&D footprint with its high-energy cyclotron expansion plans for TMS.
As part of the acquisition,
The acquisition has potential to be financially accretive, add additional revenue, and have a positive impact on gross margins for Illuccix® and Zircaix™ (when commercially available).
Dr.
Deal terms and conditions
The purchase price comprises:
US$42.5 million (approximately AU$65.3 million) upfront consideration which is payable in the form of 5,674,636Telix ordinary shares to be issued at closing3;US$15.0 million (approximately AU$23.0 million) upfront consideration payable in cash at closing;US$24.5 million (approximately AU$37.6 million) in contingent future earn out payments, payable in cash following achievement of certain clinical or commercial milestones; and- cash earn-outs representing low single to low double-digit percentage of net sales of ARTMS products or
Telix products prepared using ARTMS products for defined periods depending on the product location where the sale occurs. All earn-outs which have not otherwise expired will terminate on the 10 year anniversary following completion of the ARTMS acquisition.
The cash upfront consideration is subject to customary working capital, debt and transaction expense adjustments.
Closing of the transaction is subject to customary conditions, including regulatory approvals.
About ARTMS
Based in
About
Visit www.telixpharma.com for further information about
Telix’s lead imaging product, gallium-68 (68Ga) gozetotide injection (also known as 68Ga PSMA-11 and marketed under the brand name Illuccix®), has been approved by the
Telix Investor Relations
Ms. Kyahn Williamson
SVP Investor Relations and Corporate Communications
Email: kyahn.williamson@telixpharma.com
This announcement has been authorised for release by the Telix Pharmaceuticals Limited Disclosure Committee on behalf of the Board.
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