Australian biotechnology company Telix announced a $1.65 billion upfront deal to acquire German radiopharmaceuticals developer ITM, aiming to build a global industry leader. The transaction includes up to $700 million in milestone payments for ITM's lead cancer drug prospect, ITM-11, which faced a U.S. regulatory rejection in August 2026 due to manufacturing issues. The acquisition expands Telix's supply chain across 65 countries, with combined 2026 revenues projected to exceed $1.3 billion.
Telix-ITM acquisition deal structure
- ▪Australian biotechnology company Telix announced on September 20, 2026, that it will acquire German-based radiopharmaceuticals developer ITM for $1.65 billion up front.
- ▪The acquisition of ITM has been approved by Telix's board and investors holding over 90% of ITM's shares, with closing expected by the end of Telix's 2026 fiscal year.
- ▪Upon closing of the transaction, Telix shareholders will own approximately 76.3% of the combined company, with ITM stockholders receiving the remaining shares.
- ▪Telix could pay an additional $700 million in the acquisition of ITM if ITM's lead drug prospect, ITM-11, meets specific approval and sales targets.
Radiopharmaceutical industry growth drivers
- ▪The radiopharmaceutical drug Pluvicto, developed by Novartis, generated approximately $2 billion in sales in 2025.
- ▪Radiopharmaceuticals represent an increasingly popular cancer treatment method that delivers radioactive material directly into a tumor.
- ▪ITM's lead drug prospect, ITM-11, is a potential competitor to Novartis' Lutathera, as both therapies package the isotope lutetium-177 to target the SSTR protein.
- ▪Biotechnology industry interest in radiopharmaceuticals increased following the approvals of Novartis' Lutathera in 2018 and Pluvicto in 2022.
ITM-11 regulatory rejection
- ▪Telix noted that a Phase 3 study of the drug prospect ITM-11 in a second indication could produce results in 2027.
- ▪Telix executives expressed confidence during a September 2026 conference call in the company's ability to overcome the regulatory hurdles facing ITM-11.
- ▪United States regulators rejected ITM's lead drug prospect, ITM-11, in August 2026.
- ▪ITM stated that the August 2026 regulatory rejection of ITM-11 was based on manufacturing concerns at a third-party commercial facility rather than clinical data.
Isotope manufacturing capabilities
- ▪The acquisition of ITM provides Telix with isotope manufacturing and distribution capabilities spanning more than 65 countries.
- ▪ITM supplies raw materials for radiopharmaceuticals and has more than 10 radiopharmaceutical programs in development.
Combined company revenue projections
- ▪The combined company of Telix and ITM is expected to generate more than $1.3 billion in revenue and income in 2026.
- ▪ITM's radiopharmaceutical supply business generated $273 million in sales in 2025.
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