Telix (TLX) 2% - Higher TAM, Acceleration of Sales
Telix Pharmaceuticals (TLX) has quickly evolved from a loss-making clinical stage biotech to a soon-to-be (come the FY23 full year result) highly profitable business. The rapid commercial success of TLX’s ILLUCIX product (a radioactive diagnostic agent for patients with prostate cancer) has significantly exceeded market expectations which has driven a number of both near-term and long-term upgrades to consensus earnings expectations this calendar year to date – including four upgrades from the Wilsons Healthcare Research team.
The earnings upgrades have been driven by both ILLUCIX’s market share gains and subsequent improvements to terminal market share assumptions for ILLUCIX, as well as gradual increases to estimates regarding the size of the PSMA imaging total addressable market (TAM). We see ample scope for a continuation of TLX’s earnings upgrade cycle from ILLUCIX, and from the launch of other products in TLX’s therapeutic pipeline including its kidney cancer imaging agent, TLX250-CDx (expected in FY24), among others.
Read the latest update from Wilsons Research on TLX here.
TLX Price at posting:
$11.78 Sentiment: None Disclosure: Held
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