Telix has agreed to acquire ITM Isotope Technologies Munich in a deal combining radioisotope production, manufacturing and therapeutic radiopharmaceutical development.

Deal brings isotope production and drug development together

Under the agreement, Telix will acquire 100% of ITM for US$1.65 billion on a cash-free and debt-free basis, subject to shareholder and regulatory approvals.

The transaction is expected to include approximately US$1.25 billion paid to ITM shareholders in Telix shares, while Telix will assume US$302 million in net debt. A further US$96 million relates to management equity rollover and transaction expenses.

ITM shareholders will also be eligible for up to US$700 million in additional consideration linked to regulatory approvals and commercial sales of ITM-11, its late-stage therapeutic candidate for gastroenteropancreatic neuroendocrine tumours (GEP-NETs).

If completed, Telix shareholders are expected to own approximately 76.3% of the combined company, with ITM shareholders holding approximately 23.7%.

The transaction is expected to close by the end of 2026, subject to Telix shareholder approval, regulatory clearance and other customary conditions.

ITM adds large-scale radioisotope manufacturing

ITM operates commercial-scale radioisotope manufacturing and distribution across more than 65 countries. The company produces therapeutic radioisotopes including lutetium-177, actinium-225 and terbium-161.

Its lutetium-177 business is particularly significant to the proposed combination, with ITM describing itself as a key supplier to commercial and clinical radiopharmaceutical programmes.

ITM reported revenue of US$273 million in 2025, with revenue growing at a compound annual growth rate of 40% between 2021 and 2025.

The company has two GMP manufacturing sites in Germany and a global distribution network. Through an agreement with Isogen, it also has 15-year exclusive access to Bruce Power’s nuclear reactors in Canada for irradiation services used in the production of lutetium-177.

For Telix, the deal would bring isotope production closer to its own radiopharmaceutical development and commercial operations.

Telix managing director and group CEO Christian Behrenbruch said: “This merger positions Telix at the forefront of the consolidation that is occurring as the industry matures.”

Behrenbruch added that the companies’ combined capabilities would bring together isotope supply, manufacturing and a broader therapeutic pipeline.

ITM-11 adds a Phase 3 asset

The deal also gives Telix access to ITM’s late-stage therapeutic pipeline, led by ITM-11, also known as lutetium-177-edotreotide.

The candidate targets somatostatin receptors and is being developed for GEP-NETs. ITM said ITM-11 has completed the Phase 3 COMPETE trial, while a second Phase 3 study, COMPOSE, has fully enrolled patients.

An interim analysis from COMPOSE is expected in the first half of 2027.

The proposed acquisition includes up to US$250 million in milestone payments linked to US Food and Drug Administration approvals for ITM-11 across three indications. A further US$450 million could become payable based on global net sales exceeding US$150 million in 2030.

ITM CEO Andrew Cavey said: “Joining two radiopharmaceutical pioneers creates a company with unmatched breadth and depth across the value chain, supported by deep expertise and talent.”

The companies said the combined organisation is expected to generate more than US$1.3 billion in unaudited pro forma revenue and income in 2026, based on management estimates.

The transaction remains subject to Telix shareholder approval and regulatory conditions, with an extraordinary general meeting expected to take place in November 2026.