Telix Pharmaceuticals Ltd (ASX: TLX) shares have dropped another 2.81% in Tuesday afternoon trade. At the time of writing, the shares are changing hands at a two-year low of $10.18 a piece.
For the year to date, the shares are now down 10.26% and they're a huge 64.42% below this time last year.
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Share has caused the sell-off?
Telix posted its Q4 FY25 results in late-January, where it said it had achieved its FY25 guidance of US$804 million. Although, it did come in on the lower end of guidance. Investors clearly aren't pleased with the latest upside, with the trend for selling off shares continuing to accelerate.
It's just one of many headwinds that Telix has faced over the past few months, including regulatory filing issues with the US Food and Drug Administration.
And now, many are questioning if Telix shares will drop below the $10 barrier?
How far will Telix shares fall?
Telix shares were last trading below the $10-mark over two years ago, in very-early January 2024.
While it's surprising that the share price has continued falling, given that analysts are widely bullish on the outlook for 2026, it is possible that there could be more declines to come.
The healthcare stock has faced setbacks from US regulatory bodies over the past year, and these headwinds have continued to weigh heavily on investor confidence.
Meanwhile, the sector overall has also been under pressure. In fact, the S&P/ASX 200 Health Care Index (ASX: XHJ) notably underperformed the wider market through the final months of 2025, and into early-2026. At the time of writing, the index is 24.86% lower over the year.
Could it push even lower? Possibly.
Will it be a sustained decline? Probably not.
The issue is that headwinds facing the biotech stock haven't yet been resolved. And if regulatory setbacks continue or investor sentiment worsens, we could see the share price drop lower still.
But it's worth noting that Telix still has exceptional growth potential amid a rapidly-growing market, so I expect that any declines below $10 would be temporary.
What do the experts think?
Analysts widely expect that the beaten-down biotech stock will climb higher in 2026.
The team at RBC Capital recently upgraded Telix shares to an outperform rating and said it believes that the current valuation represents a "compelling risk/reward profile" for longer-term investors. The broker has a $17 target price on Telix shares, which implies a potential 67% upside over the next 12 months, at the time of writing.
Analysts at UBS are even more bullish on the shares. The team has a buy rating on Telix shares and a $31 target price. That implies a massive 204.5% upside from the current trading price.
I think, with potential upsides like that, at the current share price, Telix shares are a steal.
