Financial review
Group financial highlights
Up $280.7M from 2023
Significantly improved from $5.2M in 2023
Improved from an inflow of $23.9M in 2023
Up $40.9M from $58.4M in 2023
Group financial performance
It has been a transformative year for Telix, in which we have laid the foundation for the next phase of growth: preparing to launch three new products and advance our highly differentiated therapeutic pipeline, driving our geographic expansion across multiple markets, and building out a global manufacturing footprint.
From 2024 onwards, Telix has three reportable segments: Therapeutics, Precision Medicine (incorporating International and MedTech) and Telix Manufacturing Solutions. Details for each segment are provided in this section. All figures are in AU$ unless otherwise indicated.
Revenue and gross margin
Total revenue and gross margin by half-year
Revenue increased by $280.7 million (56%) to a total of $783.2 million, compared to $502.5 million for 2023, driven by the continued strong performance of Illuccix® in the U.S.
Gross margin increased during the year to end at 65% for 2024 (up from 63% in 2023), supported by a stable selling price for Illuccix® within each market segment.
Looking forward, we expect to further diversify revenue as we launch new products in the U.S. (Zircaix, Pixclara and Gozellix1, subject to regulatory approval) and continue the global rollout of Illuccix® with our European launch.
Research and development
Telix funds its research and development (R&D) from earnings. R&D increased by $66.0 million to $193.9 million, compared to $127.9 million in 2023, with expenditure predominantly focused on our late-stage assets. Our investment into research and development was within guidance (40-50% above 2023 expenditure).
In Precision Medicine, R&D focused on regulatory filings for Zircaix, Pixclara and Gozellix1 and scale-up of inventory in preparation for their commercial launches. This accounted for approximately half of our investment in 2024, with these assets expected to generate revenue in 2025.
In Therapeutics, R&D was concentrated on the progression of late-stage assets for prostate, kidney and brain cancer therapies. Starting the ProstACT GLOBAL trial represented the largest investment for Therapeutics, and included production of clinical doses.
R&D investment is outlined below:
Projects | 2024 | % of total R&D | 2023 | % of total R&D |
|---|---|---|---|---|
$M | $M | |||
Therapeutic Programs | ||||
Late-stage clinical | 57.3 | 30% | 34.4 | 27% |
Early-stage clinical | 10.9 | 6% | 4.5 | 4% |
Pre-clinical research and innovation | 14.4 | 7% | 8.6 | 7% |
Precision Medicine Programs | ||||
Lifecycle management | 14.7 | 8% | 10.6 | 8% |
New product development | 88.8 | 46% | 59.6 | 47% |
Pre-clinical research and innovation | 7.8 | 4% | 10.2 | 8% |
Total product development R&D | 193.9 | 127.9 |
Profitability
Telix is a financially sustainable business, delivering its second full year of profitability. Net profit after tax was $49.9 million, (compared to $5.2 million in 2023). This was the result of strong operational performance in the Precision Medicine business and effective expenditure control, while investing in the development of late-stage pipeline assets and build-out of manufacturing capabilities and capacity.
Operating profit to Adjusted EBITDA
Group adjusted earnings before, interest, tax, depreciation and amortization (adjusted EBITDA) was $99.3 million, an increase of $40.9 million compared to the prior year ($58.4 million). This included a number of one-off expenses, as detailed below.
U.S. listing costs
In 2024 we incurred $8.2 million in legal and compliance costs in preparation for an initial public offering on the Nasdaq through a Level III American Depositary Receipt (ADR) program. In June, we elected to withdraw the proposed initial public offering based on the view that the proposed discounts did not align with our duty to existing shareholders. Subsequent to this decision, we incurred $0.9 million in legal and compliance fees. In October 2024, Telix listed on the Nasdaq as a Level II American Depositary Receipt (ADR) program.
Acquisition-related costs
In 2024 we incurred $8.2 million in legal, due diligence and related transaction costs on strategic M&A opportunities - notably, the acquisitions of RLS, ARTMS, and IsoTherapeutics Group. These transactions exemplify Telix’s strategy of allocating capital to initiatives that support the scale-up of manufacturing and the continued build-out of our therapeutics platform for sustainable, scalable growth. The opportunities these acquisitions presented are a key component of our strategy to meet the demands of a rapidly growing market, and the unique needs of radiopharmaceuticals.
Expanding our manufacturing capabilities
In 2024, Telix Pharmaceuticals made significant strategic investments to enhance our global development and manufacturing capabilities, with the acquisitions of ARTMS and IsoTherapeutics, alongside the build-out of the Brussels South manufacturing facility. This represents a critical step in securing long-term supply chain resilience, reducing dependency on external suppliers, and ensuring financially sustainable growth in key markets. Together, these investments significantly expand our operational footprint in North America and Europe. These strategic initiatives required near-term investment which resulted in an increase in TMS operating losses to $25.0 million (2023: $5.9 million).
Cash balance and activities
Cash and cash equivalents were $710.3 million at 31 December 2024 (2023: $123.2 million). On 30 July 2024, we received net proceeds of approximately $635.0 million from the issue of convertible bonds on the Singapore Exchange. We have a disciplined and shareholder-focused approach to capital allocation, with the proceeds of the convertible bond issuance and cash generated from operations providing a strong capital structure to support continued investment in our pipeline and strategic acquisitions.
Closing cash bridge
Operating activities
Net cash generated from operating activities was $43.0 million (2023: net cash from operating activities was $23.9 million). The primary sources of cash from operating activities were collections from sales of Illuccix® of $718.1 million (2023: $463.7 million). The improved customer receipts reflect sales growth and sound debtor management during the year.
Payments to suppliers and employees of $642.5 million (2023: $414.1 million) included commercial manufacturing and research and development costs, selling and marketing costs for Illuccix® and employee costs. Other operating cash flows include interest income received, interest paid and income taxes paid in the U.S. and Belgium. Cash outflows also included a $35.9 million (2023: $16.3 million) contingent consideration payment to former ANMI shareholders.
Investing activities
Net cash used in investing activities of $135.2 million (2023: $25.5 million) comprised payments including $30.9 million for the acquisitions of ARTMS and IsoTherapeutics, $19.7 million for intangible assets including QSAM Biosciences, Inc. and $14.5 million for isotope raw material purchases.
We also invested $52.0 million into financial assets, which included a $50.0 million cash deposit into a cash security account to establish a working capital facility.
Financing activities
Net cash provided by financing activities totaled $638.9 million (2023: $10.2 million), comprising net proceeds received from borrowings of $639.9 million (2023: $5.8 million) related to the $635.0 million proceeds received from the issue of convertible bonds and $4.9 million of net loan proceeds provided for the construction of TMS Brussels South.
Precision Medicine
2024 | % of revenue | 2023 | % of revenue | |
|---|---|---|---|---|
$M | $M | |||
Revenue | 771.1 | 496.7 | ||
Cost of sales | (270.8) | (188.2) | ||
Gross profit | 500.3 | 65% | 308.5 | 62% |
Research and development costs | (111.3) | (14%) | (80.3) | (16%) |
Selling and marketing expenses | (84.6) | (11%) | (50.0) | (10%) |
Manufacturing and distribution costs | (7.8) | (1%) | (7.6) | (2%) |
General and administration costs | (42.8) | (6%) | (31.0) | (6%) |
Other losses (net) | (8.9) | (1%) | (35.1) | (7%) |
Operating profit | 244.9 | 32% | 104.5 | 21% |
Revenue growth and a stable cost base delivering higher profits
Strong sales of Illuccix® were the key driver of revenue, through a combination of increased market share and category growth for PSMA imaging, predominantly in the U.S.
Gross margin continued to improve, ending the year at 65% (up from 62% in 2023), reflecting higher realized prices and steady product manufacturing costs.
We invested in sales and marketing to facilitate further sales growth of Illuccix® and capture a greater share of this growing market. In addition, the sales and marketing expenditure included promotional advertising preparation for the launch of three new imaging agents in the U.S. and Illuccix® in Europe in 20252.
R&D focused on lifecycle management, geographical expansion for our PSMA imaging portfolio, and preparation for the commercial launch of three new imaging agents in the U.S. (Zircaix, Pixclara, and Gozellix1), which we plan to launch in 20252. This included commercial manufacturing process qualification and validation, as well as preparation of regulatory filings.
General and administration costs increased in line with revenue by $11.8 million (38%) to $42.8 million, compared to $31.0 million for 2023. This increase was primarily driven by investments in corporate infrastructure to support the expansion of services assisting commercial operations in each region.
Therapeutics
2024 | 2023 | % change | |
|---|---|---|---|
$M | $M | ||
Revenue | 9.3 | 5.4 | 72% |
Cost of sales | - | - | |
Gross profit | 9.3 | 5.4 | 72% |
Research and development costs | (82.6) | (47.6) | 74% |
Selling and marketing expenses | (0.1) | (0.1) | 0% |
Manufacturing and distribution costs | - | (0.1) | (100%) |
General and administration costs | (0.1) | (0.1) | 0% |
Operating loss | (73.5) | (42.5) | 73% |
Focused investment in late-stage therapeutic asset pipeline
We increased our investment in R&D for our late-stage therapeutics pipeline. The increase is predominantly related to the growing momentum of the Phase 3 ProstACT GLOBAL trial, and the related costs of clinical manufacturing and patient recruitment.
Telix Manufacturing Solutions
2024 | 2023 | % change | |
|---|---|---|---|
$M | $M | ||
Revenue | 2.8 | 0.4 | 600% |
Cost of sales | (2.7) | - | |
Gross profit | 0.1 | 0.4 | (75%) |
Research and development costs | (0.7) | (0.6) | 17% |
Selling and marketing expenses | (0.8) | - | |
Manufacturing and distribution costs | (17.9) | (2.2) | 714% |
General and administration costs | (5.8) | (3.5) | 66% |
Other income (net) | 0.1 | - | |
Operating loss | (25.0) | (5.9) | 324% |
In 2024, Telix completed the acquisition of ARTMS Inc. (ARTMS) and IsoTherapeutics Group (IsoTherapeutics), in order to drive vertical integration and build a foundation for long-term commercial success across the breadth of our product pipeline. Revenue for TMS was primarily generated by IsoTherapeutics' manufacturing services.
Manufacturing and distribution costs increased in 2024 as we integrated two new businesses (ARTMS and IsoTherapeutics). Investment also reflected the ramp-up of operations at the Brussels South manufacturing facility, as we prepare for commercial production to commence in 2025.
On 28 January 2025, Telix completed the acquisition of RLS, a radiopharmacy network distributing PET, SPECT and therapeutic radiopharmaceuticals. The acquisition was finalized after the reporting date and these financial results do not include the financial performance of RLS. The financial results of RLS will be included in Telix Manufacturing Solutions from 2025 onwards.
- Brand names subject to final regulatory approval.
- Brand names subject to final regulatory approval.
- Subject to regulatory approval.