Why did the Telix share price just plunge 18%?

ASX investors are punishing Telix shares today. But why?

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is falling hard today.

Shares in the S&P/ASX 200 Index (ASX: XJO) diagnostic and therapeutic product developer closed yesterday trading for $20.24. At the time of writing in morning trade on Tuesday, shares just crashed to $16.54 apiece, down 18.3%.

For some context, the ASX 200 is up 0.9% at this same time.

As you may be aware, the Telix share price has come under selling pressure since 23 July. That came after the company announced it had been issued with a subpoena from the United States Securities and Exchange Commission (SEC).

The subpoena involves disclosures related to Telix's prostate cancer therapies, and it remains unresolved at this time.

With today's intraday fall factored in, this has now seen shares drop 34.2% since market close on 22 July.

Here's what investors are mulling over today.

What's pressuring the Telix share price on Tuesday?

Investors are pressuring the Telix share price today after the company released an unaudited recast of its historical financial information in US dollars.

This follows on from Telix's decision to change its reporting currency from Aussie dollars to the greenback on 1 January this year.

Management said this reflects the US dollar's predominance for reporting the company's revenue, costs, and corresponding cash flows, which are primarily generated in the United States.

Indeed, Telix's US operations have continued to expand this year with the acquisition of RLS Radiopharmacies, which was completed on 27 January. This could be fanning further concerns over the potential financial impact of the SEC subpoena.

The historical recast to US dollar reporting is intended to assist investors with comparisons to upcoming financial reports.

But that historical growth isn't keeping investors from hitting their sell buttons today.

ASX 200 healthcare share on the historical growth path

In FY 2024, Telix reported US$516.6 million in revenue from contracts with customers. That was up 55% from the US$333.0 million achieved in FY 2023.

And FY 2024 gross profit of US$336.2 million was up 60% from the prior year in US dollar terms, with the company's gross margin improving to 65% from 63% in FY 2023.

This helped drive a 71% year-on-year increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$67.4 million in FY 2024.

Telix also saw a big improvement in its balance sheet, with its cash and cash equivalents increasing from US$84.3 million at the end of FY 2023 to US$440.0 million at the end of FY 2024.

The Telix share price will be in focus again on 21 August (post market close), after the company reports its half-year 2025 results (H1 FY 2025).

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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