Telix Acquires ITM in $1.65 Billion Merger

Telix Pharmaceuticals Limited has announced a strategic merger with ITM Isotope Technologies Munich SE, a global leader in radioisotope production and radiopharmaceutical development. The deal, valued at $1.65 billion on a cash-free and debt-free basis, is expected to significantly bolster Telix’s position as a vertically integrated radiopharmaceutical company.

Founded in 2004, ITM is a private company with a leading commercial-scale radioisotope manufacturing and global distribution network spanning over 65 countries. The company’s isotope production capabilities include lutetium-177 (177Lu), actinium-225 (225Ac), and terbium-161 (161Tb), with 177Lu being the most significant. ITM is the only producer of globally scaled commercial-grade 177Lu, serving as a key supplier for both commercially available and future therapeutic radiopharmaceuticals. From 2021 to 2025, ITM’s revenue grew at a compound annual growth rate (CAGR) of 40%, reaching $273 million in 2025.

ITM’s late-stage pipeline includes ITM-11 (177Lu-edotreotide), a novel therapeutic candidate for the treatment of gastroenteropancreatic neuroendocrine tumors (GEP-NETs). ITM-11 has successfully completed a Phase 3 trial (COMPETE, NCT03049189) and is currently fully enrolled in a second indication expansion Phase 3 study (COMPOSE, NCT04919226), with an interim analysis expected in the first half of 2027. If approved, ITM-11 is expected to accelerate Telix’s entry into the validated commercial market for targeted radionuclide therapy (TRT).

The combined organization is anticipated to generate unaudited pro forma 2026 revenue and income exceeding $1.3 billion, based on management estimates. ITM’s radioisotope manufacturing business is profitable and generates cash flow. Continued growth from manufacturing, cost savings, and further targeted synergies and pipeline optimization are expected to support a positive EBITDA contribution in 2027 and onward. If approved by health regulators, the launch of ITM-11 is expected to drive further upside, with the potential to generate additional high-margin therapeutic revenue in the near term.

Telix Managing Director and Group CEO, Dr. Christian Behrenbruch, said, “This merger positions Telix at the forefront of the consolidation that is occurring as the industry matures. ITM is the leader in radioisotope production, with deep scientific expertise and a track record of value-adding innovation. We have enjoyed a close working relationship with ITM for many years and there is strong management alignment for the rationale behind this transaction.”

ITM Chief Executive Officer, Dr. Andrew Cavey, added, “Joining two radiopharmaceutical pioneers creates a company with unmatched breadth and depth across the value chain, supported by deep expertise and talent. Our management teams have a track record of working together and a nuanced understanding of our respective commercial strengths and customer relationships. Together, we believe Telix and ITM will be uniquely positioned to capitalize on rapidly growing global demand for radiopharmaceuticals to the benefit of both shareholders and patients.”

Under the terms of the agreement, Telix will acquire 100% of the shares in ITM for $1.65 billion upfront on a cash-free and debt-free basis. The transaction is expected to close by the end of fiscal year 2026, subject to Telix shareholder approval as required under the ASX Listing Rules, regulatory approvals, and other customary closing conditions. Telix Shareholders will own approximately 76.3% and ITM Shareholders will own approximately 23.7% of Telix shares on issue.

Additional contingent consideration of up to $700 million will become payable upon the achievement of specified regulatory approvals and sales milestones for ITM-11. This includes up to $250 million upon U.S. Food and Drug Administration (FDA) approval of ITM-11 across three different indications, and up to $450 million based on ITM-11 net global sales in fiscal year 2030 in excess of $150 million.