(RTTNews) - Telix Pharmaceuticals (TLX) has agreed to merge with ITM Isotope Technologies Munich SE, a company specializing in radioisotope production and radiopharmaceutical development, in a transaction designed to expand Telix's capabilities across drug development, isotope production, and manufacturing.
Radiopharmaceuticals are medicines that combine radioactive isotopes with targeting agents to help diagnose or treat diseases, particularly cancer. The availability of specialized isotopes is a key component of this growing field.
Under the agreement, ITM shareholders are expected to receive approximately $1.25 billion in Telix shares, based on a total upfront transaction value of $1.65 billion on a cash-free, debt-free basis. The deal also includes up to $700 million in additional milestone payments tied to future regulatory approvals and commercial sales targets for ITM's lead therapeutic candidate, ITM-11. Telix will also assume approximately $302 million in net debt at closing.
ITM is a supplier of therapeutic radioisotopes, including lutetium-177, actinium-225, and terbium-161. ITM generated annual revenue of $273 million in 2025, supported by growing demand for targeted radiopharmaceutical therapies. The global nuclear medicine market is projected to reach approximately $41 billion by 2034.
The company is also developing ITM-11 (lutetium-177 edotreotide), a treatment candidate for gastroenteropancreatic neuroendocrine tumors (GEP-NETs). ITM-11 has completed a successful Phase III COMPETE trial, while a second Phase III study COMPOSE, is fully enrolled, with an interim analysis expected in H1 2027. If approved, the therapy could accelerate Telix's entry into the commercial therapeutic radiopharmaceutical market and expand its presence in neuroendocrine tumors.
According to the companies, the merger will strengthen Telix's supply chain for therapeutic isotopes and add ITM's isotope production and manufacturing capabilities. The combined company is expected to have a broader radiopharmaceutical portfolio spanning diagnostic and therapeutic products.
Telix said the transaction supports its strategy of building a vertically integrated radiopharmaceutical business capable of developing, manufacturing, and commercializing targeted therapies globally. ITM's isotope production business is also expected to contribute to future revenue generation and support the development of Telix's therapeutic pipeline.
The transaction remains subject to shareholder approval and other customary closing conditions. Telix expects to hold an extraordinary general meeting of shareholders in November 2026 to vote on the proposed merger.
TLX has traded between $6.28 and $13.11 over the past year. The stock closed Friday's trading (September 18, 2026) at $12.59, up 0.68%.