It has been a difficult year for owners of Telix Pharmaceuticals Ltd (ASX: TLX) shares.
A series of disappointing announcements has put significant pressure on the radiopharmaceuticals company's shares.
However, Bell Potter notes that there was finally some good news out of the company this week and believes that it could be a buy signal for Aussie investors.
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What is the broker saying?
Bell Potter highlights that Telix released some good news this week in relation to its Gozellix product. It believes this news has caught its main rival "asleep at the wheel." It said:
Volatility in the TLX share price is set to continue, this time for positive reasons following the CMS decision to grant pass through pricing for Gozellix from 1 October. The decision to pursue this strategy (for a refresh on the pass through) has proven to be a master stroke by the company and one that that has shown its major competitor in the PSMA imaging market asleep at the wheel. The announcement has provided welcome relief for shareholders following a difficult year for TLX thus far in 2025, highlighted by the two CRLs.
The broker believes that a reimbursement in the region of US$5,000 per patient is on the cards. Though, this will be confirmed in the near term. It adds:
The drug label for Gozellix specifies a dose range of 3mCi to 7mCi to deliver the desired level of radioactivity. Within the next few days CMS will release the quarterly hospital outpatient prospective payment schedule that will include the reimbursement rate per mCi for Gozellix, from which it will be possible to determine the average reimbursement rate paid to hospitals users. Our forecast assumes an average reimbursement of ~US$5K/patient. This reimbursement announcement does not impact Illuccix reimbursement.
Buy Telix shares
In response to the news, the broker has reaffirmed its buy rating and $23.00 price target on Telix's shares.
Based on its current share price of $15.38, this implies potential upside of approximately 50% for investors over the next 12 months.
Bell Potter has trimmed its earnings estimates but remains positive. Particularly given its belief that manufacturing issues holding back product approvals can be resolved quickly. It concludes:
FY25 Group EBITDA is reduced by $13.6m to $22.8m following adjustments to GP margin and opex in 2H25. Adjusted NPAT is now expected to be a small loss for the year. Despite the unfavourable earnings adjustments, the Buy recommendation is maintained for the key reason that we believe the manufacturing matters blocking the approval of Zircaix in particular, can be resolved expeditiously. The market for ccRCC imaging is in excess of US$500m annually with TLX unlikely to have a challenger in this market for many years. PT remains $23.00.
