Telix Pharmaceuticals has signed an agreement for the acquisition of Canadian radioisotope production technology company ARTMS.

The acquisition includes $42.5m upfront, payable in Telix shares; a cash payment of $15m and up to $24.5m in future milestone payments due when Telix meets specific clinical or commercial goals.

There will also be cash earn-outs on the net sales percentage of the products of ARTMS or Telix.

Telix will gain access to ARTMS’s advanced cyclotron-based isotope production platform, production unit and a stockpile of ultra-pure rare metals needed for consumable target manufacturing.

The deal facilitates the vertical integration of Telix's supply chain and manufacturing by offering enhanced control and security over the company's diagnostic isotopes.

The strategic acquisition will support Telix's Zircaix kidney cancer imaging rollout in the US, enhance Illuccix lifecycle management through large-scale production of gallium-68 and improve the supply chain reliability of diagnostic radionuclides such as copper-64 and technetium‐99m.

The deal will also facilitate the development of next-generation cyclotron targets for high-yield production of therapeutic radionuclides.

The company will continue operating and expanding ARTMS's research and development and production expertise to produce clinical trial quantities of actinium-225 by the end of this year.

Telix managing director and group CEO Dr Christian Behrenbruch stated: “ARTMS has been a trailblazer in the field of next-generation cyclotron-based isotope production systems and [has] demonstrated production efficiency and yields that eclipse comparable systems.

“It is our hope that by closely aligning this powerful technology with pharmaceutical development, we will transform the cost, market access and utility of diagnostic and therapeutic radiopharmaceuticals.

“Cyclotron and accelerator-based isotope production has the potential to significantly increase the capacity and lower the cost of commercially important isotopes, serving as an important adjunct to reactor-based production.”

The development comes after Telix signed an agreement to acquire US-based speciality radiopharmaceutical development and bioconjugation company IsoTherapeutics.