Telix Pharmaceuticals Limited (ASX: TLX, Telix, the Company) and RLS (USA) Inc. (RLS Radiopharmacies), the only Joint Commission-accredited radiopharmacy network in the U.S. distributing PET, SPECT, and therapeutic radiopharmaceuticals, announced an agreement for Telix to acquire RLS from its parent company, RLS Group Ltd. This acquisition significantly expands Telix's North American manufacturing capabilities and establishes a next-generation radiometal production network to benefit Telix and strategic commercial partners. Strategic Rationale The acquisition of RLS aligns with Telix’s strategy to develop a vertically integrated supply chain, encompassing manufacturing and distribution. This move enhances the delivery of clinical and commercial radiopharmaceutical products by ensuring product integrity, streamlined delivery, and strengthened partnerships. RLS' network of 31 licensed radiopharmacies, located in major metropolitan areas across the U.S., provides Telix with a robust platform to create a radiometal production and distribution network for key therapeutic and diagnostic isotopes. Additionally, with over 100,000 square feet of licensed expansion space, RLS offers significant growth potential to meet increasing production demands. This acquisition also supports the broader deployment of Telix’s ARTMS QUANTM Irradiation System™ (QIS™) cyclotron technology, enabling the efficient and cost-effective production of radiometals at scale. By leveraging RLS' infrastructure, Telix is poised to improve its supply chain resilience, increase production capacity, and broaden patient access across the U.S., including underserved populations. Operational Integration Post-acquisition, RLS will continue to serve its existing customers while operating as an independent business unit under Telix Manufacturing Solutions (TMS). The TMS division includes key Telix brands such as ARTMS, IsoTherapeutics, and Optimal Tracers. RLS will play a crucial role in Telix's U.S. manufacturing and distribution partnerships, complementing Telix’s GMP production facility in Belgium. RLS generated revenue of US$158 million in FY23, and the acquisition is expected to be cost-neutral for Telix from an operating cash flow perspective. As a current distributor of Telix’s Illuccix®, the acquisition is anticipated to be accretive to Telix following completion. Executive Commentary Dr. Christian Behrenbruch, Managing Director and Group CEO of Telix, remarked, “Our vision is to build a radiometal production and distribution network fit for the future. Combining the ARTMS platform with RLS’ network allows us to scale up isotope production and maintain a stable, consistent supply of PET and SPECT diagnostic tracers and therapeutic radiopharmaceuticals across the U.S. This acquisition ensures we can continue to deliver the high standard of product quality and reliability that Telix is known for.” Stephen Belcher, CEO of RLS, added, “We are excited to join the Telix ecosystem. Leveraging Telix’s resources will enable us to expand our capabilities and create the radiopharmaceutical company of the future. This acquisition is a positive step for our team, our customers, and the industry.” Transaction Details The purchase price includes an upfront cash consideration of US$230 million, with deferred cash of up to US$20 million contingent on financial and operational milestones. The transaction will be funded from Telix’s existing cash reserves, with closing expected in Q1 2025, subject to customary regulatory and shareholder approvals.