Telix Shares Sink Nearly 10% as Investors Shrug Off 19% Revenue Growth and Pixclara Launch in Third Quarter

NEW YORK — U.S.-listed shares of Telix Pharmaceuticals fell nearly 10% in early trading Wednesday after the radiopharmaceutical company's third-quarter update failed to impress investors, despite strong growth in its main imaging business.

The company's Nasdaq-listed shares dropped $1.11 to $10.05, giving it a market value of about $3.4 billion. In Australia, where Telix also trades, the shares fell about 7% to 8% on the ASX earlier in the day, ending a volatile session down roughly A$1 at about A$14.70.

Growth, but no acceleration

Telix, based in Melbourne with U.S. operations in Indianapolis, reported third-quarter group revenue of $245 million. That was up 19% from a year earlier but down about 1% from the second quarter.

Its Precision Medicine unit, which sells imaging agents used to detect cancer, grew faster. Revenue there rose 30% to $201 million, helped by continued demand for its prostate cancer imaging products, Illuccix and Gozellix.

The company said U.S. dose volumes for its key products rose slightly from the previous quarter despite typical seasonal slowdowns. It also said September sales support its outlook for further growth this year.

Telix expects total revenue and other income for the year to exceed $1 billion. It said results are tracking toward the upper end of its core product guidance of $950 million to $970 million.

Analysts said the update was broadly in line with expectations. Because the quarter did not show faster growth, some investors who had profited from the stock's earlier rally chose to sell.

Pipeline progress

Telix also reported progress on new products. In September, the U.S. Food and Drug Administration approved Pixclara, an imaging agent for glioma, a type of brain cancer. The company said the first commercial patients were dosed shortly afterward.

It also finished enrolling patients in its late-stage BiPASS trial in prostate cancer, and the FDA granted that program Fast Track designation, which can speed up regulatory review.

The company is working on several other late-stage programs in prostate, brain and kidney cancers. It is trying to grow beyond diagnostic imaging into radioactive cancer treatments, a market investors see as larger but riskier.

Deal concerns linger

Investors are still assessing Telix's planned merger with ITM Isotope Technologies Munich, a German radioisotope producer, which the company announced last month. Telix agreed to pay $1.65 billion upfront, largely in shares, plus up to $700 million more if certain targets are met.

Telix says the deal will give it more control over the supply of medical isotopes and create a fully integrated radiopharmaceutical company. But the shares fell sharply when the deal was announced. Critics pointed to dilution for current shareholders, ITM's losses and a manufacturing-related complete response letter from the FDA for ITM's lead drug, issued shortly before the agreement was signed.

Before the deal, Telix had said it expected more than $1 billion in 2026 sales on its own. Management has said the combined company could generate more than $1.3 billion in revenue.

Analysts stay positive

Wall Street remains largely bullish. On Wednesday, Wedbush repeated its outperform rating and $22 price target on the U.S. shares, more than double the current price. HC Wainwright has a buy rating with a $20 target.

The stock has been volatile this year. The U.S. shares have traded between about $6.28 and $13.11 over the past 52 weeks. In Australia, the shares hit a three-year low in February before rising more than 80% over the next two months.

What's next

Investors will watch for updates on the ITM deal, including shareholder and regulatory approvals and plans to resolve ITM's FDA manufacturing issue. They will also follow early Pixclara sales and whether Illuccix and Gozellix can keep growing as competition increases in prostate cancer imaging.