Dear Shareholders,
Telix stands at the forefront of a growing recognition that radiopharmaceuticals are playing a major role in the delivery of cancer care. This powerful modality presents a compelling and cost-effective proposition for patients, from initial diagnosis and staging, through primary intervention and throughout the cancer care continuum. The result is rapid growth in the global radiopharmaceutical industry, but also a need for companies to better align their decision-making and capacity-building with the fundamentals of clinical care. This is now a highly competitive field, and success will be defined by delivery infrastructure, global access to medicine, product quality, and innovation in the pipeline.
A year of organizational change
Telix is a pioneer in the field of nuclear medicine and has established a differentiated leadership position. During the year, we undertook an internal reorganization to align operations across five operating segments: Therapeutics (Tx), Precision Medicine (Px), International, MedTech and Telix Manufacturing Solutions (TMS). This structure reflects our focus as a therapeutics-led radiopharmaceutical company, while recognizing that the delivery of nuclear medicine has unique clinical and delivery requirements that require a more vertical approach to ultimately be successful.
In this Annual Report and going forward, we will be reporting financial results by the three reportable segments: Tx, Px (including International and MedTech) and TMS. The aim is to increase earnings and investment transparency, and to demonstrate how we are delivering on our corporate strategy.
Our strategy
We have a clear strategy in place to leverage the near-term clinical and commercial opportunities within our Px (imaging) business, while continuing to develop the therapies that will define our future clinical and shareholder value creation. Our Px and Tx businesses share a common investment in the infrastructure we are building, both through direct investments in supply chain and manufacturing capabilities, as well as strategic partnerships in key markets.
2024 has therefore been a transformative year, in which we have laid the strategic foundation for the next phase of growth. Our strategy is simple: deliver, grow, build and expand.
Deliver our focused portfolio of late-stage Tx products, supported by a clear theranostics strategy (including precision medicine), with well-defined clinical focus areas where we can build clinical and commercial depth.
Grow (rapidly) our industry-leading commercial Px business, working to develop 'best-in-class' products that validate our Tx business targets and finance our development programs. We achieve this through our highly skilled commercial team delivering an exceptional customer and patient experience.
Build the clinical products and services of the future, leveraging our research platform to develop a ‘next gen’ portfolio of products that include engineered proteins and alpha emitters.
Expand, both organically and through mergers and acquisitions (M&A), Telix’s global infrastructure for Px and Tx radiopharmaceutical products, which is critical for the reliable delivery of just-in-time manufactured products, and to guarantee patient outcomes.
This strategy is evident in our execution. We filed three new drug applications for Px products that have the potential to significantly impact the standard of care while super-charging Telix’s cash generation capability.
We advanced our highly-differentiated Tx radiopharmaceutical pipeline, which, we believe, is the deepest in the industry. This included the acquisition of new targets and modalities with the potential to considerably broaden our future clinical impact.
Our clinical and regulatory activities are driving geographic expansion across multiple markets with the goal of being commercially active in over 30 countries by the end of 2025. Finally, our investments in supply chain, manufacturing and distribution capabilities are designed to ensure Telix and select partners achieve best-in-class delivery performance and reliability to patients – wherever we operate.
Investing for growth
By the end of 2025, we expect Telix to look like a different company yet again. Our metamorphosis is well underway, as we become a globally active, multi-product company, with the infrastructure in place to scale for future demand.
Telix continues to invest earnings into the commercial organization, pipeline and delivery infrastructure. This year we bolstered our balance sheet via a $650 million convertible bond offering, providing us with the resources to further accelerate investments into our late-stage clinical programs, including label-expansion studies for our kidney and brain cancer imaging agents and, in parallel, advance next-generation theranostics into the clinic.
Our strengthened balance sheet also provided the option to pursue several strategic M&A opportunities. Notably, this included the acquisition of ARTMS Inc (completed in April 2024) and RLS Radiopharmacies (completed in January 2025). These transactions exemplify Telix’s strategy of allocating capital to initiatives that support sustainable, scalable growth, with both near-term financial impact and long-term performance differentiation.
Telix is collaborative. We are not just building a company; we are also part of a new oncology ecosystem. As such, we continue to work closely with industry and manufacturing partners, patient advocacy groups, regulators, researchers and academia. This is not only good for business, but it also ensures that we access the very best talent and ideas in our field, while creating opportunities for learning and professional development for our team.
Headwinds
Despite our success in 2024, the Telix leadership team remains grounded. Our business faces three categories of headwinds that impacted performance in 2024 and inform our execution plans for 2025.
Competition. For the first time, nuclear medicine and radiopharmaceuticals have become highly competitive. The old norms of indirect access to customers, reliance on third-party product delivery, and disintermediated supply chain, no longer deliver guaranteed commercial outcomes. This complexity is further challenged by an uncertain geopolitical climate that may impact supply chains and the cost of clinical delivery.
Talent. We grew dramatically this year – almost doubling the size of our workforce. However, there is a shortage of talent and domain-specific experience in our industry, which impacts execution timelines across the entirety of the business, particularly clinical trials. While we made significant progress across the portfolio, some of our clinical and product regulatory milestones were not achieved as rapidly or smoothly as expected. We believe that our investment in workforce development sets us up for success in 2025, but it remains an area of vigilance in both our technical and commercial teams.
Healthcare policy, reimbursement and regulators. Governments in major healthcare markets are not delivering consistent and predictable policies for the benefit of patients. We experienced commercial tailwinds in the form of CMS1 reform, improving how Px products are reimbursed in the United States, a major market for our products. This is in contrast to the Australian and Canadian governments, where inconsistent policy agendas are effectively limiting access to life-prolonging medicines or directing access to lower quality products. We also experienced negative impacts on dossier review times of under-resourced European Union (EU) and United Kingdom (UK) healthcare agencies. We do not expect these uncertainties to abate in 2025.
Conclusion
Having built a strong foundation over the last few years, and with several major inflection points achieved in 2024, we are on the cusp of exponential growth. I believe that Telix can be the global leader of this rapidly growing field of medicine, setting the standard and charting the course ahead for radiopharmaceuticals to change the way we ‘see and treat’ cancer. It’s an amazing time to be part of nuclear medicine and it is my absolute privilege to lead an extraordinarily talented and diverse team of people who share my personal passion for this field.
To our dedicated employees and our collaborators across the industry, I thank you for your continued effort and commitment to what we do. To our shareholders, I thank you for your continued flexibility and support and, as always, we look forward to sharing the next stage of our journey with you.
 | |
Dr. Christian (Chris) Behrenbruch | |
- Centers for Medicare & Medicaid Services.