Guess which ASX 200 healthcare stock just made a 'powerful' AI acquisition

The $3.8 million acquisition is expected to complement Telix's radiopharmaceutical pipeline.

| More on:
A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

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

  • The Telix Pharmacuticals share price is in the dumps this morning, falling 2% to trade at $10.18 
  • It comes on news the company is acquiring AI-powered clinical decision support software (CDSS) platform Dedicaid
  • The platform can generate indication-specific CDSS applications for use with PET and other imaging methods

Stock in S&P/ASX 200 Index (ASX: XJO) biopharma company Telix Pharmaceuticals Ltd (ASX: TLX) is in the red on news of a major artificial intelligence (AI) acquisition.

The developer of diagnostic and therapeutic radiopharmaceuticals has agreed to snap up Dedicaid ­– an AI-powered clinical decision support software platform (CDSS).

The Telix share price is slipping on the back of the announcement. It's currently down 2.02%, trading at $10.18.

Let's take a closer look at the acquisition the ASX 200 company's chief scientist says is capable of "supercharging" its AI offering.

ASX 200 healthcare stock slips on AI acquisition

The Telix share price is falling after the company unveiled what could be a 2.2 million Euro ($3.7 million) acquisition.

Dedicaid – a spin-off of the Medical University of Vienna – is capable of generating indication-specific CDSS applications for use with positron emission tomography (PET) and other imaging methods.

It differs from other available AI solutions in its ability to predict outcomes like the severity of disease and the risk to a patient. It can even help inform treatment decisions.

That's thanks to the automated machine learning (AutoML) engine powering the platform – effectively meaning it's a "zero code" solution.

Thus, the time, cost, and level of expertise required to build, test, and validate new CDSS applications is greatly reduced. It also smooths development and regulatory pathways.

The CDSS applications able to be generated through the platform are expected to complement Telix's radiopharmaceutical pipeline.

Telix chief scientist Dr Michael Wheatcroft commented on the news driving the ASX 200 stock, saying:

This acquisition provides Telix with a powerful AI development platform that greatly enhances our ability to rapidly generate new applications from clinical imaging data.

These applications have the potential to assist clinicians in predicting disease progression and treatment response, thus supercharging and differentiating Telix's AI offering.

It is also intrinsically aligned to the philosophy behind theranostics – which is to use the insights from medical imaging to inform and guide an optimal treatment pathway.

Telix will buy Dedicaid for 1.1 million Euro ($1.8 million) – paid in scrip. A further 1.1 million Euro earn-out is subject to United States regulatory approval.

The company is aiming to finalise validation activities and regulatory submissions for the AI platform this year.

Telix share price snapshot

The Telix Pharmaceuticals share price has taken off in 2023.

The stock is currently around 41% higher than it was at the start of the year. It's also gained 136% since this time last year.

For comparison, the ASX 200 has risen 5% year to date and 1% over the last 12 months.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

More on Mergers & Acquisitions

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Mergers & Acquisitions

APM share price placed on ice as $1.8 billion deal goes dud

It's all question marks and raised eyebrows for shareholders of this ASX company today.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
Mergers & Acquisitions

Could Star Entertainment shares be next in line to catch a takeover bid?

Star shares have been battered, but could a buyout be coming?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

Man pointing at a blue rising share price graph.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 10% on a $985 million cash bid!

Investors are piling into the ASX 300 stock on the back of a $985 million cash takeover bid.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Mergers & Acquisitions

Guess which ASX blue-chip share is throwing $202 million at another acquisition

This Aussie healthcare company is growing its presence in Switzerland.

Read more »

A man stands with his arms crossed in an X shape.
Mergers & Acquisitions

Boral share price falls after rejecting Seven Group takeover

The offer 'undervalues' Boral according to its committee.

Read more »

Miner looking at a tablet.
Materials Shares

Mineral Resources share price marching higher on new lithium project acquisition

ASX 200 investors are bidding up the Mineral Resources share price on Monday.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Appen shares plunges 17% after takeover collapse

Well that didn't take long...

Read more »