• Revenue: Increased by 56% compared to the prior year.
• Adjusted EBITDA: Improved by 70% to $99 million.
• Operating Cash Inflow: Improved by 80%.
• Profit After Tax: Increased by 860%.
• End of Year Cash Position: $710 million, bolstered by a convertible bond placement.
• R&D Investment: $195 million, focusing on regulatory filings and inventory scale-up.
• Gross Margin: Improved by 3% to 65%.
• Precision Medicine Revenue Growth: 55% increase in sales of Aleix.
• Therapeutic Pipeline Investment: Increased by 74% to $82 million.
• Manufacturing Expansion: Incremental increase of $19 million in operating expenses due to acquisitions and facility expansion.
• 2025 Revenue Guidance: Approximately $1.2 billion AUD or $770 to $800 million USD.

• Warning! GuruFocus has detected 8 Warning Signs with TLPPF.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Telix Pharmaceuticals Ltd (TLPPF) reported a 56% increase in revenue, surpassing guidance.
• The company achieved a 70% improvement in adjusted EBIT, reaching $99 million.
• Telix Pharmaceuticals Ltd (TLPPF) saw an 80% improvement in operating cash inflow.
• Profit after tax improved by 860%, showcasing strong financial performance.
• The company ended the year with a solid cash position of $710 million, bolstered by a convertible bond placement.

Negative Points

• The company faces uncertainties in the US healthcare system, which could impact future growth.
• Regulatory approval delays in the US could affect the launch of new products.
• The expiration of CMS pass-through status for Eustic could impact revenue in the second half of 2025.
• There is a risk of market cannibalization between new and existing products.
• The company has not yet included potential revenue from new product launches and territories in its guidance, indicating uncertainty in future financial projections.

Q & A Highlights

Q: What is the expected revenue growth for Telix Pharmaceuticals' RLS division in 2025? A: Christian Behrenbruch, Group CEO, stated that the revenue guidance includes 11 months of RLS Radio Pharma. The company expects high single-digit to low double-digit growth across the US business, inclusive of Eluix and RLS, reflecting continued expansion opportunities for PSMA and considering some headwinds in the US healthcare system.

Q: How does Telix Pharmaceuticals view the market growth for US PSMA sales in 2025? A: Christian Behrenbruch noted that the expansion of the PSMA opportunity continues, with new indications and opportunities potentially causing step changes in market growth. The launch of Gelics is expected to expand market reach and accelerate growth, particularly in the second half of the year.

Q: What is the risk of regulatory delays for Telix Pharmaceuticals' upcoming product launches? A: Christian Behrenbruch acknowledged the potential for regulatory delays but expressed confidence in meeting goal dates for products like Gozeics and Pix Clara. The company has not received any guidance from the FDA indicating changes to these dates and has scheduled clinical site inspections, indicating ongoing engagement.

Q: Which pipeline asset is expected to be Telix Pharmaceuticals' first therapeutic product to market? A: Christian Behrenbruch indicated that 2027 is expected to be the pre-commercial year for regulatory filings, with Prostate Global likely leading the way. The company anticipates pivotal trial data readouts for other assets like 101 and 250, which are entering pivotal trials this year.

Q: What is the expected impact of the CMS pass-through expiry on Telix Pharmaceuticals' 2025 revenue guidance? A: Christian Behrenbruch explained that the CMS pass-through expiry is a known event, and the company has planned for it with the launch of Gelics. The guidance does not include the impact of Gelics, and the two-product strategy is expected to manage the transition smoothly.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.