The FDA approval and commercial launch of the prostate imaging product Illuccix is a major milestone and endorsement for management. With potential WW peak sales in excess of $660m, Illuccix will not only support Telix's substantial late stage therapeutic and imaging pipeline, but also its aim to be at the centre of precision medicine and immune-oncology. Telix's MTR (molecular targeted radiation) imaging potential central role in cancer diagnosis and robotic surgery combined with the emerging synergies of MTR-based therapies with immunotherapy promise to put MTR and Telix at the heart of cancer care. Supported by an increasingly robust radiopharmaceuticals supply chain, Telix is establishing itself as the 'go-to' player in radiopharma with operations and major pharma and technology partners worldwide including China. In our view, Telix remains undervalued on the basis of its late stage / near to market pipeline with the promise of substantial additional upside from the wealth of opportunities generated through key partners. Our DCF valuation of the current pipeline indicates a base valuation of AUD 8.40 / share rising to AUD 11.6 as the opportunities expand. We reiterate our OUTPERFORM recommendation with an increased target price of AUD 10.00 (from AUD 5.60).
04 Jan 2022
FDA nod key first step for 'go-to' radiopharma
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FDA nod key first step for 'go-to' radiopharma
Telix Pharmaceuticals Ltd. (TLX:ASX) | 0 0 0.0%
- Published:
04 Jan 2022 -
Author:
Chris Redhead -
Pages:
63
The FDA approval and commercial launch of the prostate imaging product Illuccix is a major milestone and endorsement for management. With potential WW peak sales in excess of $660m, Illuccix will not only support Telix's substantial late stage therapeutic and imaging pipeline, but also its aim to be at the centre of precision medicine and immune-oncology. Telix's MTR (molecular targeted radiation) imaging potential central role in cancer diagnosis and robotic surgery combined with the emerging synergies of MTR-based therapies with immunotherapy promise to put MTR and Telix at the heart of cancer care. Supported by an increasingly robust radiopharmaceuticals supply chain, Telix is establishing itself as the 'go-to' player in radiopharma with operations and major pharma and technology partners worldwide including China. In our view, Telix remains undervalued on the basis of its late stage / near to market pipeline with the promise of substantial additional upside from the wealth of opportunities generated through key partners. Our DCF valuation of the current pipeline indicates a base valuation of AUD 8.40 / share rising to AUD 11.6 as the opportunities expand. We reiterate our OUTPERFORM recommendation with an increased target price of AUD 10.00 (from AUD 5.60).