It's a good day to own S&P/ASX 200 Index (ASX: XJO) biotech share Telix Pharmaceuticals Ltd (ASX: TLX). The company just revealed it has surpassed a major milestone towards profitability – positive cash flow.
The Telix share price is roaring 8.60% higher at the time of writing to trade at $7.07.
Shares in the ASX 200's Telix soar on maiden positive cash flow
Here are the key takeaways from the biotech company's latest quarterly report, covering the three months ended 31 December:
- $1.6 million of free cash flow from operating activities– up from a $5.3 million outflow in the September quarter
- $72.2 million of cash receipts from customers – a 62% quarter-on-quarter improvement
- $78.2 million of revenue – a 41% jump
- $76.8 million of revenue from sales in the United States – a 43% improvement
- Ended the quarter with $116 million in cash
The company achieved a gross margin of 63% last quarter, representing a 2% quarter-on-quarter improvement.
Its operating, selling, general, and administrative costs dropped $4.7 million over the period, reflecting better-working capital management.
Finally, $19.2 million went towards the company's research and development, manufacturing, and clinical development activities. That marked a $2.9 million increase.
What else happened last quarter?
Sales momentum for prostate cancer positron emission tomography (PET) imaging agent, Illuccix increased last quarter on the back of growth in hospital customers, independent imaging centres, and government customers.
The company's distribution network now encapsulates 190 nuclear pharmacies in the United States.
Health Canada also approved Illuccix for use with certain patients last quarter. Telix is preparing to launch in the nation in the current half.
The company also recently entered into a collaboration with the University of Queensland and has been granted an updated radiation licence by the Belgian Federal Agency for Nuclear Control.
What did management say?
CEO of Telix Americas, Kevin Richardson, commented in the news driving the ASX 200 share today, saying:
We are pleased to see continued sales momentum nine months after launching in the United States and Puerto Rico. We are continuously adding new sites and growing existing accounts, resulting in a steady increase in demand for doses.
In 2023, we look forward to building on the foundations of a successful commercial launch to continue to drive sustainable growth and make a positive impact on more patients' lives.
What's next?
This year looks like it could be exciting for Telix.
The company is making progress on the European regulatory process. It plans to finalise an undated dossier to be resubmitted to the Danish Medicines Agency by the end of the March quarter. Telix is also progressing with marketing authorisation applications in Brazil and South Korea.
Finally, the company is progressing its core clinical pipeline, with a focus on prostate cancer, renal cancer, brain cancer, and rare diseases. It has more than 20 clinical trials underway.
Telix share price underperforms the ASX 200
Sadly, the Telix share price has struggled to keep up with the ASX 200 lately.
The stock has tumbled 18% over the last 12 months. Meanwhile, the ASX 200 has slipped just 0.4%.
