Telix Completes Acquisition of ARTMS, and its Advanced Isotope Production Platform

Telix, today announces the completion of the acquisition of radioisotope production technology firm ARTMS Inc. (ARTMS), its advanced cyclotron-based isotope production platform, manufacturing plant and stockpile of ultra-pure rare metals required for consumable target production1.

ARTMS, based in Vancouver, BC (Canada), is a privately held, commercial-stage company, which specialises in the physics, chemistry and materials science of cyclotron-produced radionuclides. Its core technology platform, the QUANTM Irradiation System™ (QIS™), is a complete cyclotron-based isotope production system designed to support high efficiency, large-scale and cost-effective production of commercially important medical isotopes such as zirconium-89 (89Zr), gallium-68 (68Ga), technetium‐99m (99mTc) and copper-64 (64Cu). QIS™ is used today by many of the major manufacturing networks to optimise production of a range of medical radioisotopes.  

ARTMS’ portfolio of advanced cyclotron technologies also has immediate application and differentiation in the production of future commercially important alpha-emitting, therapeutic isotopes, including actinium-225 (225Ac) and astatine-211 (211At). 

The acquisition further enhances the vertical integration of Telix’s supply chain and manufacturing by providing a greater level of supply chain and regulatory control over the production of key isotopes. 

Dr Christian Behrenbruch, Managing Director and Group CEO of Telix said, “ARTMS is a leader in the field of “next generation” cyclotron isotope production. This acquisition has multiple commercial, clinical and organisational synergies that are highly complementary to our commercial and clinical product portfolio. Most importantly this technology is designed to facilitate broader patient access to therapeutic and diagnostic radiopharmaceuticals through its efficient, high-yield production techniques. We are delighted to welcome the talented ARTMS team, their unique intellectual property, and highly differentiated technologies to the Telix Group of companies.” 

Transaction terms 

The upfront consideration value is US$57.5 million (approximately AU$86.8 million) of which US$42.5 million (approximately AU$64.2 million) has been paid to ARTMS Inc. in equity through the issue of 5,674,635 fully paid ordinary Telix shares at AU$11.50 per share2, with US$15.0 million (approximately AU$22.6 million) paid in cash3.  

A further US$24.5 million (approximately AU$37.0 million) in contingent future earn-out payments is payable in cash following achievement of certain clinical or commercial milestones. The purchase price also includes cash earn-outs representing low single to low double-digit percentage of net sales of ARTMS products or Telix products prepared using ARTMS products for defined periods depending on the product location where the sale occurs. All earn-outs which have not otherwise expired will terminate on the 10 year anniversary of completion. Equity is subject to voluntary escrow conditions4

ARTMS will operate as a stand-alone technology arm of Telix – with operations expanded to leverage Telix Manufacturing Solutions (TMS) in Belgium as a key research and development  footprint.