After IPO fails, imaging agent developer Telix Pharmaceuticals raises $429M via debt

After a recent initial public stock offering in the states failed to gain traction, imaging agent developer Telix Pharmaceuticals has now pivoted to the bond market.

The Melbourne, Australia-based radiopharmaceutical producer announced late Tuesday that it had successfully secured nearly $429 million (USD) in bonds maturing in 2029 and carrying an interest rate of 2.375%.

Telix plans to use the proceeds to accelerate development of products in its theranostics portfolio. This includes funding studies aimed at expanding uses for diagnostic imaging agents and funding “pivotal” trials related to kidney and brain cancer.

Managing Director and Group CEO Christian Behrenbruch, PhD, MBA, believes this marks a “clear inflection point in Telix’s journey.”

“The proceeds deliver financial flexibility to execute on our strategic priorities while reducing potential dilution of existing shareholders,” he said July 23. “We have been able to capitalize on strong business execution and market conditions to deliver attractive financing terms. We are very pleased with the strong support that we received from global investors in relation to the offering."

On June 5, Telix had announced plans to raise $200 million, making 17 million shares of its stock available through an IPO. However, a little over a week later, the company said it was withdrawing the proposed U.S. listing on the Nasdaq, citing challenging market conditions. Telix said at the time that the company “did not feel that the proposed discounts were aligned with its duty to its existing shareholders.”

The firm’s financial maneuvering comes as it eyes a 2024 rollout of the first targeted PET imaging agent for kidney cancer. Leaders recently completed a licensing application to the U.S. Food and Drug Administration after first initiating the process in December.

Zircaix is the brand name for its investigational radiodiagnostic PET agent for the characterization of renal masses. Telix’s FDA submission followed Phase 3 of its ZIRCON study (Zirconium in Renal Cancer Oncology), which reported meeting key endpoints in November 2022. The trial demonstrated superior sensitivity and specificity of the advanced diagnostic imaging agent.

Telix said the bond money also will provide financial flexibility for the company to potentially pursue “strategically significant M&A transactions and continued investment in global supply chain and manufacturing capabilities.” Settlement of the debt offering is expected on July 30 and still subject to certain conditions. The convertible bonds will be listed on the Singapore Exchange Securities Trading Limited. J.P. Morgan acted as sole manager of the bond offering.