The Telix Pharmaceuticals Ltd (ASX: TLX) share price has come under pressure on Thursday.
In morning trade, the radiopharmaceutical company's shares are down 17% to $10.06.
Why is the Telix share price crashing?
Investors have been selling down the Telix share price today following the release of the company's second-quarter update.
Here's how the company performed during the quarter:
- Total revenue up 21% quarter-on-quarter (QoQ) to $120.7 million
- Cash receipts from customers up 35% to $112.2 million
- Positive operating cash flow improved by 350% to $10.8 million
- Closing cash balance of $131.7 million
What drove the result?
Strong sales for the company's Illuccix product in the United States drove this solid QoQ growth.
Revenue from U.S. sales of Illuccix increased by 19% to $116 million (US$77.6 million) for the quarter. This was complemented by modest sales of $4.7 million outside the United States.
Though, the latter could soon be given a major boost if everything goes to plan. The company highlights that it is progressing new marketing authorisations for Illuccix in a number of jurisdictions, including the United Kingdom and the European Union.
Broker reaction
The team at Bell Potter responded relatively positively to the update. It said:
Telix reported its 2Q23 cash flows and trading update after market this afternoon. Revenues for the quarter were A$120.7m representing growth of 20.6% vs 1Q23 or an increase of $20.6m. The result was in line with our expectation.
Bell Potter has retained its buy rating and $14.00 price target on the Telix share price.
Management commentary
Managing director and group CEO, Dr Christian Behrenbruch, was pleased with the quarter. He said:
Q2 2023 was another strong quarter for Telix, characterised by the ongoing trend of double-digit revenue growth from sales of Illuccix and continued positive operating cash flow. This is reflective of our excellent commercial performance and strength in PSMA-PET imaging2 in all of Telix's operating markets.
Simultaneously we are focused on the marketing authorisation of two further products for kidney and brain cancer imaging. Following successful planning meetings with the United States Food and Drug Administration (FDA), we are focused on preparing regulatory marketing applications, scaling up manufacturing and preparing for future product approvals and launch.
Dr Behrenbruch also highlights that the company has other exciting products in its pipeline that could support its future growth. He adds:
Momentum also continues to build with our therapeutic pipeline, with clear clinical progress delivered across our prostate, kidney and glioblastoma programs. This activity is reflected in our investment in research and development (R&D), which remains in line with our stated plan.
During the quarter Telix opened its manufacturing site in Brussels South,3 and announced two modest acquisitions. These strategic initiatives broaden the late-stage pipeline and further enhance Telix's position as a vertically-integrated radiopharmaceutical company to support a breadth of future product offerings across the continuum of patient care.
