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Telix Pharmaceuticals solidifies Australian Biotech Success, posting net profit after years of Refundable R&D Tax Offset Recipients

Melbourne-based Telix Pharmaceuticals has previously been one of the largest recipients of the R&D Tax incentive, and has continued its rare feat in Biotechnology; commercialising a product, and progressing to growth and profit.

The company’s radiopharmaceuticals are designed to deliver focused doses of radiation with precision targeting via an injection, regardless of where the cancer or disease is in the body.

In the early stages of Telix Pharmaceuticals, the company was receiving substantial refundable R&D Tax Offsets (including more than $12M for the year ended 31 December 2020, and more than $11M in the preceding period).

The company’s recent results released to the ASX in August 2024 note key financial highlights:

• Total Group revenue of $364.0 million, an increase of 65% compared to H1 2023, reflecting continued growth in sales of its prostate cancer imaging agent, Illuccix® in the United States (U.S.), now in its second full year of commercial sales.
• Net profit after tax of $29.7 million compared to a net loss of $14.3 million in H1 2023.
• Adjusted earnings before interest, tax, depreciation, and amortisation (Adjusted EBITDA) of $57.5 million, an increase of $22.8 million or 66%, when compared to $34.7 million in H1 2023.
• Adjusted earnings before interest, tax, depreciation, amortisation and research and development (Adjusted EBITDAR) of $137.1 million, a significant uplift from $81.3 million in H1 2023, demonstrating the profitability of the commercial organisation.
• Net cash generated from operating activities of $39.1 million (compared to $13.3 million in H1 2023), primarily from sales of Illuccix®.

After originally floating on the ASX in November 2017 at a price of $0.65, Telix Pharmaceuticals’ shares are trading around $19.00 currently.

Once the company achieves sales turnover greater than $20M, it can no longer receive substantial refunds under the R&D Tax Incentive, however Telix Pharmaceuticals is an example of how the R&D incentive can be used as a springboard to launch an Australian success story.

Whilst most biotech companies do not enjoy the success of Telix Pharmaceuticals, this does show how the R&D Tax Incentive can be a powerful tool in helping early stage companies progress to growth and international success.

Please get in touch with our office if you require assistance, would like to speak to someone about a potential claim, or check out our website for more information.