Why this $7 billion ASX 200 healthcare share is now trading at a discount

With revenue surging, a leading expert believes the ASX 200 healthcare stock has been oversold.

S&P/ASX 200 Index (ASX: XJO) healthcare share Telix Pharmaceuticals Ltd (ASX: TLX) is marching higher today.

Shares in the diagnostic and therapeutic product developer closed trading for $20.15 on Friday. In afternoon trade on Monday, shares are changing hands for $20.44 apiece, up 1.4%.

With 334.72 million shares outstanding, Telix commands a market cap of $6.84 billion.

While today's gains see Telix shares up 16.7% since this time last year, shares remain down 14.2% in 2025.

And according to MPC Markets' Jonathan Tacadena, that sell-down has been overdone (courtesy of The Bull).

Medical workers examine an x-ray or scan in a hospital laboratory.

Image source: Getty Images

Should you buy the ASX 200 healthcare share today?

"Telix is a commercial stage biopharmaceutical company," said Tacadena, who has a buy recommendation on the ASX 200 healthcare share.

Commenting on the regulatory news that's sent Telix shares tumbling almost 19% since market close on 22 July, he added:

TLX recently announced it had received a subpoena from the US Securities and Exchange Commission (SEC) seeking documents and information primarily relating to disclosures regarding the development of the company's prostate cancer therapeutic candidates.

The company is co-operating with the SEC. Telix was unable to say when the matter will be resolved.

Supporting his buy recommendation for Telix shares, Tacadena pointed to Telix Pharmaceuticals' strong June quarterly results, released on the same day as the SEC subpoena announcement.

"Meanwhile, the company reported unaudited group revenue of about $204 million in the second quarter of fiscal year 2025, up 63% on the prior corresponding period," he said.

Connecting the dots, Tacadena concluded, "The core business remains robust, and the regulatory noise creates an opportunity to buy a quality healthcare innovator at a discount."

What else has been happening with Telix shares?

The three months to 30 June saw the ASX 200 healthcare share receive country-level approvals for its cancer detection product, Illuccix, in France, Finland, Ireland, Sweden, Germany, Portugal, Greece, the Czech Republic, Belgium, and Italy.

Commenting on the progress over the quarter, Telix CEO Christian Behrenbruch said, "Dose volumes for Illuccix rose 7% quarter-on-quarter in the US, reinforcing the strength of our market position and continued customer demand."

Behrenbruch added:

Despite emerging competitive pricing pressure, we have effective strategies in place to manage impact to average selling price. This includes the recent launch of Gozellix which has been assigned a HCPCS code, a crucial reimbursement milestone towards pass through status.

We continue to show positive momentum across multiple assets in our therapeutic pipeline.

Taking a step back, investors who bought the ASX 200 healthcare share five years ago will be sitting on gains of 1,403% today.

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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