Telix share price slides despite 726% revenue boost

Investors may be thinking the pharmaceutical company's valuation has peaked after the stock price doubled over the past three months.

| More on:
A CSL scientist looking through a telescope in a lab

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Telix released its results for the half-year ending 30 June
  • In April, the company publicly released its flagship product Illuccix in the US
  • Revenue and cash all rocketed as the first commercial sales of Illucix came in

The Telix Pharmaceuticals Ltd (ASX: TLX) share price plunged in early trade on Thursday after the company revealed its results for the half-year ending 30 June.

Shares in the ASX biotech company are currently trading down 4.1% at $6.96 after touching an intraday low of $6.66 this morning.

What did the company report?

  • Revenue up 726% to hit $24 million
  • Loss after income tax attributable to shareholders up 118% to $70.9 million
  • Cash at the end of the half-year 456% higher to hit $122.6 million
  • Global sales of Illuccix were $22.5 million.

What else happened in the half-year?

The major highlight for Telix in the first half of the calendar year 2022 was arguably the biggest milestone in the company's history. That was the commercial launch of its prostate cancer product Illuccix in April, which triggered an 11% share price gain that morning.

The product is now available in 149 pharmacies across the United States, which brought in $19.3 million in sales.

What did management say?

Telix chair Kevin McCann and chief executive Christian Behrenbruch jointly released a statement saying:

Telix is developing a portfolio of radiopharmaceutical products that aims to address significant unmet medical [needs] in oncology and rare diseases.

The principal activities of the group during the half-year were directed to the first commercial sales of Illuccix in the United States and the further development of the group's pipeline of radiopharmaceutical products, including completion of recruitment into the company's phase III pivotal clinical trial of TLX250-CDx for renal cancer imaging.

What's next?

The company did not provide specific guidance for the second half or the full year.

Telix is currently working through approvals to commercially release Illuccix in Australia, Europe, the United Kingdom, Canada, South Korea and China. The product already has commercial approval for the New Zealand market.

The pharma company is also working on solutions for other cancers, such as renal and bone marrow.

Telix share price snapshot

The Telix share price has been on a wild ride this year.

It started 2022 at around $8.22 but was caught up in the brutal sell-off of high-growth and biotechnology shares to plunge to $3.55 by mid-May.

But since then, the commercial release of Illuccix seems to have caught investors' attention, with the stock more than doubling in just three months.

Motley Fool contributor Tony Yoo has positions in TELIXPHARM DEF SET. 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 Scott Phillips.

More on Earnings Results

Miner looking at a tablet.
Earnings Results

Rio Tinto share price on watch following FY 2023 earnings miss

Rio Tinto's iron ore operations were on form in 2023. It's a shame the rest of the business wasn't.

Read more »

Man with rocket wings which have flames coming out of them.
Earnings Results

4 All Ords ASX dividend shares going gangbusters on results

All Ords investors are sending these ASX dividend shares soaring on the back of their earnings results.

Read more »

Man waiting for his flight and looking at his phone.
Earnings Results

Corporate Travel share price plunges 18% despite tripling net profits

An explosion in earnings is taking a backseat to changes in Corporate Travel Management's full-year forecasts.

Read more »

happy woman throws arms in the air
Bank Shares

NAB shares hit 52-week high on first-quarter earnings beat

NAB appears on track to at least deliver on first-half expectations.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Earnings Results

Santos share price slips on 42% profit drop in FY23 result

Profits come back down to Earth in FY23.

Read more »

a man sits on a ridge high above a large city full of high rise buildings as though he is thinking, contemplating the vista below.

Here are 4 ASX 200 REITs results catching the eye on Wednesday

A mixed set of results have been announced by these property companies.

Read more »

Three analysts look at tech options on a wall screen
Earnings Results

WiseTech share price leaps 8% today as revenues surge

ASX 200 investors are bidding up the WiseTech share price today.

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Earnings Results

Domino's share price charges higher on improving outlook

Here's how this struggling pizza chain operator performed during the first half.

Read more »