Understanding Telix, page-1128

Interesting perspective-

Probably the most interesting news of the week.In a biopharma world that cannot get enough of ADCs (see one of my previous posts ➡ https://lnkd.in/dhRNuYje), the decision to halt the most anticipated Nasdaq IPO of Australian ADC company Telix Pharmaceuticals Limited came as a shock. Especially because it happened a few hours before start of trading.Telix Pharmaceuticals Limited is already listed on the Australian Stock Exchange (ASX). As such, the company was seeking a dual-listing on the US market, which is quite customary to tap a larger pool of liquidity / investor base.The Company pulled off the IPO because it "did not feel that the proposed discounts were aligned with its duty to its existing shareholders."Which discounts? A liquidity discount from one market to another (but we are talking about the US and Australia)? A size discount (but we are talking about a $5bn+ company)?Any discount could only exist if technical by nature and not prone to a trading arbitrage. I do not see how bookrunners Jefferies and Morgan Stanley would have allowed that, irrespectively of a share price which has increased significantly over the last 12 months. Something else must be happening and this is where things could get interesting.Asked about potential acquisition interest in Telix Pharmaceuticals Limited, Chris Behrenbruch suggested that the Company didn’t fit the exact profile of what pharma companies have been looking to buy. “For a pharma company to come in and take out a company like Telix, they’re going to have to be excited about our therapy pipeline and our diagnostic pipeline, because we’re not going to carve off one from the other.” (see article from Endpoints News ➡ https://lnkd.in/daUEhRU3)Well, I guess that narrows down the list of potential interested parties... or maybe the price is not right.#Biotech #lifesciences #ADC #capitalmarkets #mergersandacquisitionshttps://lnkd.in/duKzsFyi

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