Telix share price slips on quarterly update

Investors are still digesting the oncology company’s results…

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Key points

  • Telix Pharmaceuticals posted its quarterly activities and cash flow updates today
  • The company made several advancements in its core product line, Illucix, while also progressing clinical trials 
  • In the last 12 months the Telix share price has gained 14%

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is sliding today and is now 1.96% in the red at $4.51.

Investors appear to have been unimpressed by Telix’s quarterly activities and cash flow report today, with trading volume less than 25% of the four-week average.

Telix share price slips amid product progress

The Telix share price is falling after the company released its activities report for the quarter ended March 31. In terms of cash flow, Telix reported net loss in cash from operations of $33.6 million, with total operating outflows of $36.7 million.

From this amount, it recorded cash receipts of $1.9 million from sales to customers and spent $20 million on research & development (R&D).

Telix launched its prostate cancer imaging product, Illuccix, in the US last quarter. This is “a major focus area”, according to the company. Telix is predicting “a high level of anticipation and customer demand” for the product.

Specifically, Telix’s cash flow statements reveal it has a cash runway – how long its cash will last at the current rate of expenditure – of 5.1 quarters.

But, Telix says, “this number does not include any anticipated revenue from commercial sales of Illuccix, which was successfully launched in the United States on 4 April 2022.”

Judging from this timeline, it appears Telix will start booking revenue from US Illucix sales at some point this year.

The release also states that the first commercial inventory of the product “is available through 117 US pharmacies in the Cardinal Health, PharmaLogic, and United Pharmacy Partners (UPPI) networks”.

Telix also completed enrolment of 252 patients into a Phase 3 study investigating its TLX–250CDx compound for the imaging of clear cell renal cell carcinoma with positron emission topography (PET).

Aside from that, Telix also completed a $175 million institutional placement made of new ordinary shares priced at $7.70 apiece. It will use the funds to finalise late-stage clinical trials and work towards expanding its pipeline.

It also secured 12.1 million Euros (A$18.2 million) in financing for the development of a radiopharmaceutical production facility in Belgium. The facility will be used for R&D in both diagnostic and therapeutic applications, Telix says.

Management commentary

Speaking on today’s results, Telix managing director and CEO Dr Christian Behrenbruch said:

This has been a pivotal quarter for Telix, as we delivered on several major objectives including the Company transformational event of launching our first commercial product and completion of target enrolment for a Phase III clinical trial.

We are strongly encouraged by the level of anticipation and early demand for Illuccix, both in the independent imaging centre and hospital-based segments of the US market, driven by clear inclusion in clinical practice guidelines and, more recently, indicated as a patient selection tool for next-generation prostate cancer therapy. Telix is uniquely positioned to deliver this product on-demand, coast-to-coast across the US

In the last 12 months, the Telix share price has gained 14%. However, it has tanked by more than 41% this year to date.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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