Telix Pharmaceuticals announced its acquisition of radioisotope production technology firm ARTMS Inc. ("ARTMS"), including its advanced cyclotron-based isotope production platform, manufacturing plant, and a vital stockpile of ultra-pure rare metals. This acquisition, valued at a total consideration of up to approximately AU$125.9 million, marks a pivotal step in Telix’s strategy to enhance its supply chain and manufacturing prowess.

Based in Burnaby, British Columbia, Canada, ARTMS is a leader in the development of cyclotron-produced radionuclides, a technology that is crucial for the optimization of medical radioisotope production. The company’s flagship QUANTM Irradiation System™ (QIS™) represents a leap forward in the efficiency and cost-effectiveness of producing key isotopes such as zirconium-89 (89Zr), gallium-68 (68Ga), technetium-99m (99mTc), and copper-64 (64Cu).

The acquisition is strategically aligned with Telix’s objectives to secure and streamline its diagnostic isotope supply chain. This includes supporting the rollout of Zircaix® for kidney cancer imaging and enhancing the supply chain reliability of other crucial diagnostic radionuclides. Moreover, ARTMS’s technology will play a key role in the development and production of therapeutic radionuclides, such as actinium-225 (225Ac) and astatine-211 (211At), which are vital for next-generation radiopharmaceuticals.

Dr. Christian Behrenbruch, Managing Director and Group CEO of Telix, expressed enthusiasm for the acquisition, stating, “ARTMS has been a trailblazer in the field of 'next generation' cyclotron-based isotope production systems. By integrating ARTMS’s technology with our pharmaceutical development, we aim to transform the cost, market access, and utility of both diagnostic and therapeutic radiopharmaceuticals.”

Doug Gentilcore, CEO of ARTMS, also commented on the acquisition, highlighting the synergy between the two companies. “Our goal has always been to make key isotopes readily available. Joining forces with Telix, a company with the most used 68Ga-based imaging agent on the U.S. market, positions us to achieve this ambition on a much larger scale.”

The deal comprises an upfront consideration of US$42.5 million (approximately AU$65.3 million) payable in Telix shares, US$15.0 million (approximately AU$23.0 million) in cash, and up to US$24.5 million (approximately AU$37.6 million) in contingent future earn-outs. These payments hinge on achieving certain clinical or commercial milestones, with additional earn-outs based on net sales of ARTMS products or Telix products prepared using ARTMS technology.

This strategic acquisition not only signifies Telix’s commitment to advancing radiopharmaceutical innovation but also sets a new standard for the production and supply of medical isotopes, promising to enhance patient outcomes worldwide. The closing of the transaction is subject to customary conditions, including regulatory approvals, marking a new chapter in the evolution of radiopharmaceuticals.