ASX 200 healthcare stock Telix Pharmaceuticals surges 12% on 'excellent result'

This healthcare stock is having a stronger day than most. But why are investors getting excited?

| More on:
a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

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

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is having a strong session.

At the time of writing, the ASX 200 healthcare stock is up almost 12% to $10.94.

This follows the release of the company's half-year results.

Telix share price jumps on strong half-year results

  • Revenue up nine-fold to $220.8 million
  • Adjusted earnings before interest, tax, depreciation, amortisation and research and development (EBITDAR) of $82.4 million
  • Net loss after tax of $14.3 million
  • Cash balance of $131.7 million

What happened during the half?

For the six months ended 30 June, Telix reported revenue of $220.8 million. This was up significantly on the $24 million it reported for the prior corresponding period. Management advised that this reflects continued growth in sales of its prostate cancer imaging agent, Illuccix, since its U.S. commercial launch in April 2022.

Telix's adjusted EBITDAR also improved materially compared to the same period last year. It came in at $82.4 million, which is up from a loss of $28 million a year earlier. Management notes that this demonstrates the profitability of its commercial organisation.

Another positive was that the company was operating cash flow positive for the period. That's despite funding commercialisation activities to launch two new imaging products.

Management commentary

Telix CEO, Dr Christian Behrenbruch, was very pleased with the result. He said:

Telix has delivered an excellent result across all key financial metrics. The business has demonstrated its ability to commercialise successfully, delivering an impressive $218.3M in total revenue from Illuccix sales in H1 2023, with sustained growth in demand since launch. Importantly, Telix has transitioned to positive earnings on an adjusted EBITDAR basis signalling the profitability of our commercial organisation.

Outlook

While no guidance was provided for the full year, Dr Behrenbruch spoke positively about the company's outlook. This appears to have given the Telix share price a boost today. He said:

We have a positive outlook for continued growth in commercial sales of Illuccix, based on an expanding global PSMA PET imaging market, and expect to see Telix launch two new products in 2024 for brain and kidney cancer imaging, subject to regulatory approval. The business is making great progress across its therapeutic programs and, with a number of exciting clinical milestones ahead, will further demonstrate the value and differentiation of its industry-leading pipeline.

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. 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 recommended Telix Pharmaceuticals. 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

Delighted adult man, working on a company slogan, on his laptop.
Earnings Results

Bank of Queensland share price leaps 6% on improving outlook

ASX 200 investors are bidding up the Bank of Queensland share price on Wednesday.

Read more »

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »