Telix's acquisition of RLS and strategic rationale

Telix Pharmaceuticals Limited (ASX:TLX) has announced its agreement to acquire RLS (USA) Inc. from its parent company, RLS Group Ltd. The acquisition is aligned with Telix's investment strategy to expand its North American manufacturing and distribution platform, enhancing the delivery of future clinical and commercial radiopharmaceutical products.

Executive commentary on the acquisition

Dr Christian Behrenbruch, Telix Managing Director and Group Chief Executive Officer, stated, 'Our vision is to build a radiometal production and distribution network fit for the future. By combining the ARTMS platform and the RLS network, we can scale up the production of key isotopes and build a stable and consistent supply of PET and SPECT diagnostic tracers, along with therapeutic radiopharmaceuticals across the U.S. for the benefit of Telix, our partners and the patients we serve.' Mr Stephen Belcher, Chief Executive Officer, RLS, added, 'We look forward to becoming part of the Telix Group ecosystem. The RLS management team has emphasised quality, reliability and flexibility, and by leveraging Telix's support, we will be able to expand our capabilities further and, together, build the radiopharmaceutical company of the future.'

Summary of Telix's acquisition of RLS and outlook

Telix's acquisition of RLS is strategically aimed at expanding its North American manufacturing footprint and establishing a next-generation radiometal production network. The acquisition will enable Telix to leverage RLS's radiopharmacy network to build a radiometal production and distribution network for key therapeutic and diagnostic isotopes, enhancing its capacity to meet future demand and broaden access for patients across the U.S. market. With RLS continuing to operate as an independent business unit under Telix Manufacturing Solutions, the acquisition is expected to be cost-neutral to Telix from an operating cash flow perspective and accretive following completion. The transaction, subject to customary conditions, is anticipated to close early in the first quarter of 2025. Telix's ambitions to build a stable and consistent supply of radiopharmaceuticals and expand its capabilities through the acquisition reflect its commitment to delivering high-quality products and meeting the evolving needs of the market.