How Is Telix Driving 63% Revenue Growth Amid SEC Scrutiny?

Strong Revenue Growth Amid Expansion

Telix Pharmaceuticals has delivered a striking 63% increase in revenue for the half-year ended 30 June 2025, reaching $390.4 million, up from $239.6 million in the prior corresponding period. This surge was primarily driven by organic growth in sales of Illuccix®, the company’s flagship prostate cancer imaging agent, alongside the strategic acquisition of RLS Radiopharmacies, which contributed $79 million in third-party product and service sales.

The company’s gross margin, however, declined to 53% from 66% in the previous year, reflecting a shift in product mix following the integration of RLS’s lower-margin SPECT imaging products and expanded supply chain costs.

Investments and Operating Loss

Despite the revenue growth, Telix reported a net loss after tax of $2.3 million, a reversal from a $19.6 million profit in the first half of 2024. This loss was influenced by increased operating expenditures totaling $395.2 million, up from $216.7 million, driven by expanded business operations, higher research and development (R&D) spending, and finance costs related to convertible bonds issued in mid-2024.

R&D investment rose sharply to $81.6 million, focusing on advancing late-stage therapeutic candidates, including the ProstACT Global Phase 3 trial and regulatory submissions for Zircaix® and Pixclara®. The company also increased selling and marketing expenses by 68%, primarily to bolster its U.S. salesforce and prepare for European market launches.

Strategic Acquisitions and Pipeline Progress

Telix’s expansion strategy included the acquisition of RLS Radiopharmacies, America’s only Joint Commission-accredited radiopharmacy network, enhancing its manufacturing and distribution capabilities. Additionally, the acquisition of ImaginAb Inc. brought a next-generation therapeutic pipeline and proprietary biologics technology platform, further diversifying Telix’s clinical-stage assets.

The company also secured multiple regulatory approvals for its imaging agents across Europe, the U.S., and other key markets, positioning Illuccix® and the next-generation Gozellix® for broader commercial rollout. Clinical trials progressed with key milestones reached in prostate cancer and glioblastoma therapeutic programs.

Financial Position and Cash Flow

Telix ended the period with a cash balance of $207.2 million, down from $440 million at the start of the year, reflecting significant cash outflows for acquisitions and capital expenditures. The company maintained positive net operating cash flow of $17.7 million, supported by strong collections from sales.

Convertible bonds issued in July 2024 contributed $15.8 million in finance costs, impacting profitability. The company’s net tangible assets per share declined significantly, reflecting the increased liabilities and investments.

Regulatory and Legal Developments

Telix disclosed it is cooperating fully with a subpoena from the U.S. Securities and Exchange Commission (SEC), which is seeking documents related to the company’s disclosures on prostate cancer therapeutic candidates. The company emphasized this is a fact-finding inquiry and has not indicated any wrongdoing.

This development introduces an element of regulatory uncertainty, though Telix’s management remains confident in the company’s compliance and ongoing growth trajectory.