Telix Pharmaceuticals (ASX:TLX) has completed the acquisition of RLS (RLS Radiopharmacies), America’s only Joint Commission-accredited radiopharmacy network that distributes PET, SPECT, and therapeutic radiopharmaceuticals.
Under the previously disclosed terms of the transaction, Telix has acquired 100 per cent ownership of RLS. The purchase price comprised an upfront cash consideration of US$230 million before adjustments for cash and cash equivalents, debt and debt equivalents, transaction expenses, and working capital. Deferred cash consideration up to a maximum of US$20 million is contingent on achieving certain milestones related to the demonstration of accretive financial and operational performance during the four quarters following closing. Telix said the acquisition and related transaction costs were funded from existing cash reserves.
Telix said the acquisition immediately enhances its presence in the US, with a network of over 30 radiopharmacies dispensing radiopharmaceuticals manufactured by Telix and other companies.
It said the acquisition is part of its strategy to establish an integrated radiopharmaceutical ecosystem, enhancing its ability to deliver novel therapeutic and diagnostic radiopharmaceuticals to patients.
The RLS footprint of over 100,000 square feet of licensed expansion space provides the opportunity to build a next-generation radiometal production network to benefit Telix, select commercial partners, and patients.
RLS will continue to operate under the same name and as a standalone business within Telix Manufacturing Solutions, which includes other key Telix brands with multi-vendor and third-party relationships, such as ARTMS, IsoTherapeutics and Optimal Tracers.
The addition of RLS’s operations strengthens Telix’s commercial infrastructure and distribution capabilities in its largest market, including the capacity to undertake in-house cyclotron manufacturing powered by its ARTMS QUANTM Irradiation System cyclotron technology, enabling standardised, high-efficiency and cost-effective production of radiometals.
Dr Christian Behrenbruch, Telix managing director and CEO, said, “We are pleased to officially welcome the RLS team to Telix. The completion of this acquisition marks a milestone in our journey to become the leader in radiopharmaceuticals, as the RLS network significantly boosts our existing in-house and partner capabilities. With RLS’s distribution and operational expertise, Telix is strongly positioned to bring our growing portfolio of innovative products to more patients across the U.S.”
Stephen Belcher, RLS CEO, added, “The RLS team is delighted to be joining Telix, as we combine our 40-year history in radiopharmaceuticals with Telix’s growing investment in its North American footprint. Together we can accelerate the availability of transformative radiopharmaceuticals and build on our respective commitments to innovative patient care. We are excited to be part of the Telix story going forward.”