I’ve learned through conversations with many of my friends and fellow investors that they find the growth unbelievable in Telix but aren’t investing as they can’t get their heads around the company.
So I’ve created this thread to try to break the company down into plain English/provide a brief overview. Please add to it or correct me if I’ve misinterpreted/misunderstood anything.
1- Telix is a cancer-based biotech company. It’s in a high growth phase where it’s rapidly rolling out its first approved product while developing a substantial pipeline of larger/higher risk assets.
2 - Most cancers have different characteristics, so it’s not a one solution fits all.
3 - The difficulty in treating cancer is determining if you actually have cancer and if so where it is and what is the best way to treat it.
4 - The two important terms are imaging and therapy. Where imaging shows where the cancer is as a visual image and therapy is a solution to treat the cancer.
5 - Telix uses different radioactive isotopes for both imaging and therapy. Radioactive isotopes are forms of chemical elements that have an unstable nucleus and emit radiation as they decay.
6 - Radioactive isotopes are revolutionary to the cancer imaging and therapy world. It’s quickly being adopted and is a worldwide race to develop assets for its best use.
7 - In order to sell a product as a commercialized product, it needs a label approval.
8 - Each product is described as an asset due to so much money being invested into it in an attempt to make a difference/sell a product in the form of a label.
9 - Telix is developing a pipeline of many assets. Some imaging, some therapy. All at different stages of development, towards the goal of an approved label for sale.
10 - The label essentially describes who can use the product, how it’s used, what dosage etc.
11 - Each country has its own authority that puts different conditions on the use of the label, so approval in one country doesn’t mean approval in every country.
12 - The overall approval process is similar but different. You need to show that your product is safe and actually makes a difference.
13 - There are many years of testing, trials etc before you can submit data/results in that country for a label approval. This is expensive, time-consuming and bears a huge risk of a failed asset with no return. So a biotech company that can sustain its cash burn while developing assets is extremely rare
14 - Depending on the label, sometimes you can have your product fee partially reimbursed to that patient by the country’s health care services. This is important as it provides greater market access to the product as it’s more affordable. E.g. Fee is 5k, and healthcare pays 4K of the fee. The patient is 1K out of pocket
15 - USA is typically the biggest market with the approval authority being the FDA
16 - The first approved commercial label that Telix has is Illuccix
17 - Illuccix is approved now in many countries including USA, Australia, Canada, and a few others
18 - Submissions for Illuccix are pending in other countries such as the EU, Asia etc which are all big markets to add on if approved
19 - Illuccix is an imaging product that shows professionals where prostate cancer is. Professionals can then provide their best advice on how to treat it depending on where it is
20 - Illuccix pre label code is TLX591-CDx
21- The market size per year in the USA for Illuccix is estimated to exceed 1 billion USD. It’s currently captured around 200 million AUD annualized in sales and growing. Just in the USA
22 - The cost of a dose of illuccix in USA is approx $5,000 USD and depending on the case, sometimes multiple doses are required for ongoing imaging to ensure the cancer has been adequately treated
23 - The next closest asset that’s expected to obtain a label for commercialization is TLX250CDX
24 - TLX250CDX is imaging for kidney cancer but it is speculated that it can image more than just kidney cancer. The market size for this in the USA is approx. 400 million USD per annum
25 - The most advanced developed therapy asset is TLX591. It’s similar to Illuccix (TLX591-CDx) but uses a higher dose and has other differences
26 - TLX591 estimated cost per dose is $50,000 USD
27 - With TLX591 its estimated that patients might need around 5 doses for treatment - $250,000 USD per patient (approx 350k AUD)
28 - There are approx. 200,000 people with prostate cancer in the US alone (based on NCCN estimates) that could potentially be patients of TLX591
Here is an old snapshot of assets being developed
This is a broad overview and is intended for informational purposes only so DYOR. I am a shareholder and am aware of the risks involved.
I am not an expert in oncology, so all the information has been an interpretation from available information.
I’d love if investors smarter than I would add value in plain English in this thread to help the community better understand Telix and what the great team are doing.
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