Telix Pharmaceuticals Limited is acquiring ARTMS Inc., a leading radioisotope production technology firm. The deal includes ARTMS’ advanced cyclotron-based isotope production platform and rare metal stockpile. This acquisition aims to strengthen Telix’s vertical integration, enhancing control over diagnostic isotope production. It aligns with Telix’s strategic goals and is expected to be financially beneficial, pending regulatory approvals.
Telix Pharmaceuticals Limited (ASX: TLX) has announced its agreement to acquire ARTMS Inc., a leading radioisotope production technology firm based in Burnaby, British Columbia (BC), Canada. The acquisition encompasses ARTMS’ advanced cyclotron-based isotope production platform, manufacturing plant, and a stockpile of ultra-pure rare metals crucial for consumable target production.
ARTMS, a privately held venture-backed company, specializes in the physics, chemistry, and materials science of cyclotron-produced radionuclides. It emerged as a spin-out from TRIUMF, Canada’s renowned particle accelerator center, and is now operating commercially, providing technology utilized by major manufacturing networks to optimize medical radioisotope production.
This acquisition is expected to strengthen Telix’s vertical integration of the supply chain and manufacturing, offering enhanced control and security over the production of the Company’s diagnostic isotopes. ARTMS’ core technology platform, the QUANTM Irradiation System™ (QIS™), is a comprehensive cyclotron-based isotope production system designed to facilitate high efficiency and cost-effective production of crucial medical isotopes such as zirconium-89 (89Zr), gallium-68 (68Ga), technetium‐99m (99mTc), and copper-64 (64Cu).
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The strategic rationale for the acquisition revolves around four key areas of commercial synergy between ARTMS and Telix:
1. Support for the roll-out of Zircaix™ (TLX250-CDx) kidney cancer imaging.
2. Ultra large-scale production of 68Ga to support Illuccix® lifecycle management.
3. Enhanced supply chain reliability of commercially useful cyclotron-produced diagnostic radionuclides such as 64Cu and 99mTc.
4. Development of ‘next-generation’ cyclotron targets to support the safe and high-yield production of therapeutic radionuclides.
Telix plans to continue and expand ARTMS’ research and production capabilities at its Burnaby location, aligning with its in-house and customer needs.
The acquisition is anticipated to be financially accretive, generating additional revenue and positively impacting gross margins for products like Illuccix® and Zircaix™.
Dr. Christian Behrenbruch, Managing Director and Group CEO of Telix, expressed optimism about aligning ARTMS’ technology with pharmaceutical development to transform the cost, market access, and utility of diagnostic and therapeutic radiopharmaceuticals.
Doug Gentilcore, Chief Executive Officer of ARTMS, emphasized their shared goal of ensuring key isotopes are readily available to those in need and expressed excitement about the potential for delivering therapeutic radionuclides at commercial scale through the partnership with Telix.
The deal terms include upfront consideration of US$42.5 million, payable in both cash and Telix ordinary shares, with additional contingent future earn-out payments based on achieving certain clinical or commercial milestones. The transaction is subject to customary conditions, including regulatory approvals.