Telix Pharmaceuticals share price sinks on unexpected Nasdaq news

ASX 200 investors are bidding down the Telix Pharmaceuticals share price today. But why?

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is taking a fall today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biopharmaceutical company closed on Tuesday trading for $16.46.

Shares were frozen yesterday after the stock entered a trading halt pending additional details on the company's proposed initial public offering (IPO) in the United States.

With those details now out, shares are swapping hands for $16.13 apiece at the time of writing, down 2.0%.

Here's what ASX 200 investors are mulling over.

ASX 200 biotech stock pulls out of Nasdaq IPO

The Telix Pharmaceuticals share price is under pressure after the company announced that its Nasdaq listing is off the cards.

The US listing has been in the works since early January. In May, Telix Pharmaceuticals chair Kevin McCann said the dual listing would enable the ASX 200 biotech stock "to better access the deep pool of specialist investors focused on biotechnology and radiopharmaceuticals in the US".

He added that the Nasdaq listing would give the company increased visibility which "will drive long-term value creation for shareholders".

On 6 June, the company confirmed its intent to list American Depositary Shares (ADSs) on the Nasdaq. The Telix Pharmaceuticals share price hit record highs on the day.

Today the company said it opted to withdraw its proposed Nasdaq IPO at the terms provided under current market conditions, adding that the proposed discounts were not aligned with its duty to existing shareholders.

Telix said its plan to list on the Nasdaq wasn't based on the need to raise capital. And since it first announced its intent to file on 4 January, the company has achieved a number of commercially significant milestones with its medical products. That's seen the Telix Pharmaceuticals share price soar more than 70% since 4 January.

Commenting on the withdrawal from the Nasdaq IPO, Telix CEO Christian Behrenbruch said:

While this is not our desired outcome Telix's strategic objectives must align with our duty to existing shareholders. I'd like to thank my team for the personal commitment and incredibly long hours put into this IPO process.

Telix Pharmaceuticals noted that its performance and prospects remain strong.

"As a profitable, cash generative company, Telix retains sufficient earnings and balance sheet capacity to deliver on its key corporate objectives," the company stated.

Telix Pharmaceuticals share price snapshot

The Telix Pharmaceuticals share price is up 61% so far in 2024.

Long-term investors who bought shares five years ago will be sitting on eye-popping gains of 1,541%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. 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.

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