Just to follow up on the infrastructure investment.You had already made a comment about investments in PET CT scanners and technological innovation.So it doesn't seem like you have any concerns about the capacity to support demand, but could you maybe just elaborate a little more on where the market stands today?And how much of that investment in scanning capacity is needed to support the rapid uptake of PSMA?
Christian Behrenbruch
Co-Founder, MD, Group CEO & Executive Director
03:16:10
I'll start and then if anyone wants to chime in.But I think we're going through a kind of a 3-step evolution in the industry.So today, we're just seeing the flex of the current infrastructure.That means extended operating hours, Saturdays, evenings like people are packing it in.There's also, by the way, a lot more -- when the first F-18-based PSMA agent came out, it meant that you had to schedule a block of time or you had to do a certain workflow.Now that there's multiple opportunities to get access to product, you can weave it in and layer it in much more efficiently and depending on what your -- what the time of day is or what your patient load looks like.So today, it's about optimization of the existing infrastructure.Then 18 to 24 months out, you're really looking at the leading centers expanding their capabilities, adding additional scan capacity.
Christian Behrenbruch
Co-Founder, MD, Group CEO & Executive Director
03:17:09
And then the sort of third stage of all of that is the emergence of -- and it's a really interesting concept, is the emergence of the stand-alone theranostic center, which we've never seen before.So these are typically interdisciplinary practices that are only going to practice theranostic medicine.And they're popping up everywhere.There's one down the road from Kevin's house in Texas.There's one across the road from our headquarters office in Melbourne.They're just popping up, private nuclear medicine, private theranostic departments.And they tend to start off with infusion and using local imaging services.And then eventually, they go, you know what, we just want -- we want integrated control.We're going to bring in our own scanners.So I see that as like that's the short-, medium- and long-term capacity build.Do you have anything to add?
Kevin Richardson
Chief Executive Officer of Telix Americas
03:18:01
No.Short term, they do what everyone does.They try to flex workforce, right?So they pay a little bit more to have Saturdays.They hire a few more people to extend their hours.We're seeing that in different areas as maybe there is some constraint in time, but eventually, you'll see that kind of equalize or reach an equilibrium around.And then because they're seeing that, then they're already starting to talk to their scanner companies of choice that they are looking for, while we're doing the same thing to give a broader market view of "Hey, it's not just Illuccix, it's 250-CDx, it's 101-CDx.There's other things coming.So they get a broader view of what's going on.And that's why it's so important for us to be out there talking about that portfolio so that the infrastructure stays ahead of it.
Kevin Richardson
Chief Executive Officer of Telix Americas
03:18:46
Now, it's also infrastructure and technology.So as Chris was describing, scan times are coming down when you buy new technology.So that even opens up more capacity.I mean, it is amazing to watch the explorer pictures that you saw, high quality, short time.So we're getting even better pictures in shorter time.So we'll see that market go that direction as we do a better job of getting out there now.Now that they know we're real and everything is happening in PSMA is going to happen with 250 or 101, then they see that expansion happen.And so infrastructure will start catching up and leading them.
Christian Behrenbruch
Co-Founder, MD, Group CEO & Executive Director
03:19:23
I'm bound to note that when you're dealing with a super-busy imaging department, whether it's an IDTF or a hospital environment, okay, you're down to critical -- I mean you're cramming in every last patient you can get in a day.When you have an interruption to supply chain, it's devastating, right?It's not like you're just trying to fit 1 or 2 patients, and you may have like 8 PSMA patients lined up for that day and you have a failed delivery, it's devastating.And I can tell you that for a customer, it happens literally once, and they will reevaluate their supply.So with critical operating mode comes the critical necessity for reliability.And that's where Illuccix just has -- it's just in a league of its own.We do stack doses for competition all the time, every single day.Even in this city, we do stat doses for competition every week.So it's a really great opportunity for us to show our differentiation.
Christian Behrenbruch
Co-Founder, MD, Group CEO & Executive Director
03:20:22
And then the cool thing about from an operational perspective, we don't have Darren from the ops team here, who's really, honestly, is the [ god ] of the company, I would say.Yes.Yes.When we moved -- Illuccix was our training wheels product, as I said in the beginning, but wow, what a crazy bike to have a training wheel on.we had 200 points of distribution for a product with of 4-hour half-life.When we get to 250 and the zirconium-based products, we need about 8 dispensing pharmacies to cover the entire country.So we actually deescalate in terms of complexity.And so what does that mean?It means that the reputation for delivery that we built with our customer base is even going to be more reinforced.So I think it's a great opportunity to build our corporate brand.
Kevin Richardson
Chief Executive Officer of Telix Americas
03:21:10
And to put that into a patient's perspective, right, I mean we know what they're going there for.They're going there to see if they have metastatic disease.It's kind of an important decision.And many of your nuclear med radiologists call that scanxiety, right?So they've got scanxiety as they're sitting there waiting.And then, to think you're going to get that scan that day and then not to get it, just adds to that because then they just have to move you.They can't move you to the next day because there's already somebody scheduled that day.So it usually means they or the staff have to work a Saturday or fit it in even longer.So that scanxiety just last even longer.That's why it's more important for reliability, it is really from a patient human standpoint.Just do what you said you're going to do so they can time their life and manage it and get the results of their scan.Good or bad, people want to know, so they can get treated.
Mary Jessel
03:21:59
And if I can add just ASCO talking to a lot of the medical oncologists, they said that it was so important to get that scan, not only just for the scan anxiety, but for patient selection for therapy.And so if you didn't get it, they would miss out on therapy, and that's critical for them that they couldn't get on therapy right away.
Christian Behrenbruch
Co-Founder, MD, Group CEO & Executive Director
03:22:23
Well, look, people have come from all over the place to be here, as far away as Connecticut and as far away as Sydney, and both take about the same amount of time, I think.But really appreciate everybody being here and for your questions and your engagement, and I think we're at the end of time.So I believe there's some food outside.So feel free to ask any informal questions.And again, thanks so much for your attendance.It's really appreciated.
TLX Price at posting:
$9.45 Sentiment: Buy Disclosure: Held
(20min delay)
