BY Richard Summerfield
Australian biotechnology firm Telix Pharmaceuticals Limited has agreed to buy Germany-based ITM Isotope Technologies Munich SE in a deal worth around $1.65bn.
The transaction will see Telix pay ITM shareholders around $11.84 per share, valuing the company at $1.65bn, with ITM shareholders expected to receive about $1.25bn after taking into account debt and cash reserves. Upon completion of the deal, Telix shareholders will own about 76.3 percent of Telix shares, while ITM shareholders will own around 23.7 percent. Telix will also assume $302m of ITM’s net debt at closing, alongside $96m of management equity rollover and transaction expenses payable by sellers, subject to closing adjustments.
The transaction is expected to close by the end of fiscal year 2026, subject to Telix Shareholder approval, regulatory approvals and other customary closing conditions.
Upon completion of the deal, the newly combined organisation is expected to generate unaudited pro forma 2026 revenue and income exceeding $1.3bn, based on management estimates.
Continued growth from manufacturing, cost savings and further targeted synergies and pipeline optimisation are expected to support a positive earnings before interest, taxes, depreciation and amortisation (EBITDA) contribution in 2027 and onward.
If approved by health regulators, the launch of ITM-11 – a novel therapeutic candidate for gastroenteropancreatic neuroendocrine tumours (GEP-NETs), which has completed phase three development – is expected to drive further upside, with the potential to generate additional high-margin therapeutic revenue in the near term.
The deal also includes contingent consideration of up to $700m, payable upon achievement of specified regulatory approvals and sales milestones for ITM-11. A further $100m is tied to approval in another GEP-NET indication by the end of 2030.
“This merger positions Telix at the forefront of the consolidation that is occurring as the industry matures,” said Christian Behrenbruch, managing director and group chief executive of Telix. “ITM is the leader in radioisotope production, with deep scientific expertise and a track record of value-adding innovation. We have enjoyed a close working relationship with ITM for many years and there is strong management alignment for the rationale behind this transaction.
“By combining our complementary strengths, we will create a company with commercial scale, world-leading supply and the most exciting theranostic drug portfolio in the sector. Importantly, this combination further expands our late-stage therapeutic pipeline with two completed Phase 3 trials and deepens radioisotope security, while bringing together the mission-critical capabilities needed to deliver radiopharmaceutical treatments to patients around the world,” he added.
“Joining two radiopharmaceutical pioneers creates a company with unmatched breadth and depth across the value chain, supported by deep expertise and talent,” said Andrew Cavey, chief executive of ITM. “Our management teams have a track record of working together and a nuanced understanding of our respective commercial strengths and customer relationships. Together, we believe Telix and ITM will be uniquely positioned to capitalize on rapidly growing global demand for radiopharmaceuticals to the benefit of both shareholders and patients.”
News: Australia's Telix Pharma agrees to buy Germany's ITM Isotope for about $1.65 billion