Telix Pharmaceuticals Limited has agreed to acquire RLS, a Joint Commission-accredited radiopharmacy network distributing PET, SPECT and therapeutic radiopharmaceuticals, from its parent company, RLS Group Ltd.
 
This move significantly expands Telix’s North American manufacturing footprint and establishes the basis of a next-generation radiometal production network to benefit Telix and select strategic commercial partners.
 
This news comes months after Telix entered into an agreement to acquire IsoTherapeutics Group earlier this year.

Strategic Rationale

The acquisition of RLS is aligned with Telix’s investment strategy around vertically integrated supply chain, manufacturing, and distribution, further enabling the delivery of future clinical and commercial radiopharmaceutical products. The company views this as a necessary measure to ensure product integrity and delivery, and to strengthen and complement existing commercial partnerships.
 
Telix will leverage RLS’ 31 licensed radiopharmacies located in major metropolitan areas across the U.S. to build a radiometal production and distribution network for key therapeutic and diagnostic isotopes alongside last-mile delivery of finished unit doses in relevant markets. The RLS footprint includes over 100,000 square ft of appropriately licensed expansion space that can be utilized to meet rapidly growing production demand. The acquisition also provides a clear pathway to extensively deploy Telix’s ARTMS QUANTM Irradiation System (QIS) cyclotron technology, enabling standardized, high-efficiency and cost-effective production of radiometals.
 
By augmenting its existing distribution network, Telix aims to provide additional supply chain backup and improve capacity to meet future demand, while broadening access for patients across the entire U.S. market, including under-served populations. The acquisition aligns Telix’s pharmaceutical development workforce with RLS’ highly skilled and multi-disciplinary radiopharmaceutical manufacturing, supply chain and operational expertise.
 
RLS will continue to service its existing customers and operate as an independent business unit under Telix Manufacturing Solutions (TMS), which includes other key Telix brands with multi-vendor and third-party relationships such as ARTMS, IsoTherapeutics and Optimal Tracers. As part of the TMS business vertical, RLS will become a key node in Telix’s network of U.S. manufacturing and distribution partnerships and is geographically complementary to TMS’ GMP production facility located in Belgium.
 
Dr. Christian Behrenbruch, Telix Managing Director and Group CEO, said: “Our vision is to build a radiometal production and distribution network fit for the future. By combining the ARTMS platform and the RLS network, we can scale up the production of key isotopes and build a stable and consistent supply of PET and SPECT diagnostic tracers, along with therapeutic radiopharmaceuticals across the U.S. for the benefit of Telix, our partners and the patients we serve.”
 
Stephen Belcher, CEO, RLS, added, “We look forward to becoming part of the Telix Group ecosystem. The RLS management team has emphasized quality, reliability and flexibility, and by leveraging Telix’s support, we will be able to expand our capabilities further and, together, build the radiopharmaceutical company of the future. We see this as a very positive step for the company, our people and our customer base.”
 
The purchase price comprises upfront cash consideration of $230 million before adjustments for cash and cash equivalents (net of restricted cash); debt and debt equivalents; transaction expenses; and working capital, and deferred cash consideration up to a maximum of $20 million, contingent on achievement of certain milestones related to demonstration of accretive financial and operational performance during the four-quarters following closing. The acquisition and related transaction costs are expected to be funded from existing cash reserves.
 
The acquisition is expected to close early in the first quarter of 2025.

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