Not long after pulling a last-minute plug on a $232m initial public offering (IPO) on Nasdaq, Telix Pharmaceuticals has raised $398m (A$600m) via the issue of convertible bonds.
The bonds, which are convertible into ordinary shares, will yield a 2% – 2.75% interest, the radiopharmaceutical specialist said in a 23 July press release. The maturity date is set for five years from now, at the end of July 2029.
Australia-based Telix said it intends to list the convertible bonds on the Official List of Singapore Exchange Securities Trading Limited (SGX-ST).
While Telix had been planning on going public on Nasdaq earlier this year, the company U-turned on the IPO citing market conditions at the time. Telix had been on course to raise $232m in the listing, though the company maintained that the decision was not “predicated on the need to raise capital”.
Instead, the convertible bonds bring low-cost financing to the company which is non-dilutive until future conversions. The initial conversion price will be set at a 30% –35% premium to Telix’s current share price on the Australian Securities Exchange, where it is currently listed.
Telix said the funds will be used to conduct label expansion studies for diagnostic imaging agents, as well as pivotal trials for kidney and brain cancer therapy programmes.
Telix inched closer to a marketed kidney asset after it submitted a biologics license application (BLA) to the US Food and Drug Administration (FDA) for a radio-diagnostic PET1 agent, TLX250-CDx (89Zr-DFO-girentuximab) in early June this year. A lutetium-based therapeutic candidate is also currently in a Phase II trial.
TLX101 and TLX101-CDx make up the company’s brain cancer pipeline. TLX101 is currently in Phase I (NCT05450744) and Phase II trials while a new drug application is being prepared for TLX101-CDx. The latter has been awarded fast track designation from the FDA as there are currently no targeted PET imaging agents for gliomas that have been approved.
Telix also has assets in prostate cancer, soft tissue sarcoma, and bone marrow conditioning.
Telix group CEO Dr Christian Behrenbruch said: “The announced offering will provide additional financial flexibility to execute on our strategic priorities and capitalise on future opportunities in the rapidly growing radiopharmaceuticals market.”
The arena is becoming more crowded as the radiopharmaceutical modality yields increasing therapeutic promise. Eli Lilly has made no secret of its push into the space, acquiring radiopharmaceutical specialist POINT Biopharma in a $1.4bn deal in October 2023. The drugmaker then linked up with Radionetics Oncology in a $140m deal earlier this month, which included an exclusive option to buy the partner for $1bn.
Bristol Myers Squibb and Novartis have also conducted their own radiopharma acquisitions for $4.2bn and $1.75bn respectively in the past year.
