Telix Pharmaceuticals' (ASX:TLX) Gozellix is expected to experience an "impressive sales ramp," with the company's prostate cancer diagnostic products continuing to gain market share, Jarden Research said in a Tuesday note.

Telix said its second-generation prostate cancer diagnostic, Gozellix, has been granted transitional pass-through (TPT) status effective Oct. 1, which would ensure favorable Centers for Medicare & Medicaid Services (CMS) reimbursement for the next two to three years.

The company's first-generation prostate cancer diagnostic, Illuccix, rolled off TPT on June 30, subjecting it to a 25% price hit on CMS patients, but that will now be largely offset by Gozellix receiving TPT status.

The investment advisory firm said Gozellix is very similar to Illuccix but offers a longer six-hour shelf life, enabling the company to access previously underserved market segments that were unreachable due to Illuccix's shorter half-life.

Gozellix is anticipated to see strong sales growth with favorable reimbursement, better distribution radius, existing physician familiarity of Illuccix, and scalable production, according to Jarden Research.

The firm maintained its buy rating and AU$28.13 price target on Telix Pharmaceuticals.

Telix Pharmaceuticals' shares fell nearly 2% in afternoon trade Thursday.