Imaging agent developer Telix finalizes $250M purchase of RLS radiopharma network
Melbourne, Australia-based imaging agent developer Telix Pharmaceuticals has finalized its deal to acquire RLS (USA) Inc. for $250 million, the two announced Monday.
RLS operates America’s only Joint Commission-accredited radiopharmacy network, with 31 locations covering over 85% of the U.S. population. Headquartered in Lake Mary, Florida, RLS distributes PET (positron emission tomography) and SPECT (single-photon emission CT) agents along with therapeutic radiopharmaceuticals, serving over 1,500 customers.
Telix said the acquisition enhances its presence in the U.S., giving the company a network to dispense radiopharmaceuticals and a team of “highly skilled and multidisciplinary” professionals.
“The completion of this acquisition marks a milestone in our journey to become the leader in radiopharmaceuticals, as the RLS network significantly boosts our existing in-house and partner capabilities,” Christian Behrenbruch, PhD, MBA, managing director and group CEO at Telix, said in a statement shared Jan. 27. “With RLS’s distribution and operational expertise, Telix is strongly positioned to bring our growing portfolio of innovative products to more patients across the U.S.”
Telix said the deal is part of its strategy to establish an “integrated radiopharmaceutical ecosystem,” enhancing its ability to distribute products. The company’s portfolio includes prostate imaging product Illuccix and bone infection imaging agent Scintimun (not yet approved in the United States).
RLS’s footprint covers over 100,000 square feet, providing the chance to build a “next generation” radiometal production network benefiting Telix and other commercial partners. Telix touted plans to undertake in-house cyclotron manufacturing, “enabling standardized, high-efficiency and cost-effective production of radiometals.” RLS will continue operating under the same name as a standalone business.
Telix will pay $230 million (USD) in cash upfront before certain adjustments. The company also will issue a deferred cash consideration of up to $20 million more, contingent on achieving certain milestones related to operational and financial performance. Telix plans to fund the deal through existing cash reserves.
RLS tallied 2023 revenue of $158 million, and the transaction is expected to be cost-neutral to Telix from an operating cash flow perspective. The two organizations initially announced the deal in September.
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.