The Telix Pharmaceuticals Ltd (ASX: TLX) share price is on the move on Friday morning.
At the time of writing, the ASX 200 healthcare stock is down 9% to $18.04.
This follows the release of its half-year results after the market close yesterday.
Telix share price sinks on half year results
- Total group revenue up 65% to $364 million
- Gross margin up to 66% from 63%
- Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) up 66% to $57.5 million
- Net profit after tax of $29.7 million (up from a loss of $14.3 million)
- FY 2024 guidance reaffirmed
What happened during the half?
For the six months ended 30 June, the ASX 200 healthcare stock reported a 65% increase in revenue to $364 million. This reflects continued growth in sales of its prostate cancer imaging agent Illuccix in the United States, which is now in its second full year of commercial sales.
Telix's gross margin improved to 66% (from 63%) due to the stable selling price of Illuccix and disciplined cost control.
This ultimately led to the company delivering a half-year net profit after tax of $29.7 million. This compares favourably to a loss of $14.3 million in the prior corresponding period.
Management commentary
The ASX 200 healthcare stock's managing director and CEO, Dr Christian Behrenbruch, was pleased with the results. He said:
Telix continues to grow revenue from Illuccix, increase gross profit margin and manage costs effectively, while investing for future growth. Our achievements in the first half of 2024 have created value for shareholders and positioned the Company for success on multiple fronts.
Building on our commercial success with Illuccix, we are focused on expanding the near-term opportunity in precision medicine diagnostics with three new products planned for launch in 2025, subject to regulatory approval.
At the same time, new efficacy data from the ProstACT SELECT trial has reinforced the therapeutic potential of TLX591 – our Phase III asset for prostate cancer therapy, while we have a number of additional significant clinical milestones ahead across our therapeutic pipeline.
Outlook
Failing to give the Telix share price a lift today is news that management has reaffirmed its guidance for FY 2024.
It continues to guide to full-year 2024 revenue of US$490 million to US$510 million (A$745 million to A$776 million at current exchange rates). This represents a 48% to 54% increase on what was recorded in FY 2023.
Telix also confirmed that its previously advised guidance for research and development expenditure remains unchanged.
Dr Behrenbruch concludes:
We believe the radiopharmaceutical sector is at an inflection point and Telix has the proven commercial ability, clinical experience and balance sheet strength to advance our leading-edge theranostic pipeline.
With a proven revenue stream and a clear path to future business growth, Telix is positioned at the vanguard of this fast-growing field.
