SEC subpoenas imaging agent developer Telix Pharmaceuticals
U.S. authorities recently subpoenaed Telix Pharmaceuticals, launching an investigation into the Australia-based imaging agent developer’s operations.
The publicly traded, Australia-based vendor revealed news of the inquiry in its second quarter earnings report, released Tuesday. Telix said the Securities and Exchange Commission, which enforces laws against market manipulation, is seeking “various documents and information” primarily relating to its prostate cancer therapeutic drug candidates.
“The company is fully cooperating with the SEC and is in the process of responding to the information request,” Telix said in a July 22 news announcement. “At this stage, this matter is a fact-finding request.”
Telix also has notified the Australian Securities and Investments Commission about the matter. It didn’t elaborate further, citing company policy “not to discuss any details of an ongoing regulatory inquiry.”
“The information request from the SEC does not mean that Telix or anyone else has violated United States federal securities laws or that the SEC has a negative opinion of any person, entity or security,” the company emphasized. “We cannot predict when this matter will be resolved or what (if any) action the SEC may take following the conclusion of this investigation.”
While the inquiry unfolds, Telix said it will continue developing the related prostate cancer therapies. It emphasized that the request does not extend to other late-stage products such as PET imaging agents Gozellix, Zircaix, Pixclara and Illuccix. The latter is a prostate diagnostic agent that logged global revenues of $154 million in Q2, up 25% compared to the same period last year. Altogether, Telix recorded quarterly revenues of $204 million, up 63% year over year. Its shares were down roughly 16% Tuesday, the biggest slump in 21 months according to Bloomberg, on news of the inquiry.
Law firms such as Atlanta-based Holzer & Holzer this week announced they are investigating the matter on behalf of investors to determine whether Telix violated federal securities laws.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.