The Telix (ASX: TLX) share price is trading 4.27% lower this morning, despite the company announcing positive acquisition news.
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Biopharma Telix Pharmaceuticals Ltd (ASX: TLX) share price is trading lower this morning, despite the company announcing the completion of its acquisition of Swiss-based company, TheraPharm.
At the same time, the company also announced that TheraPharm has now completed an intellectual property (IP) agreement with the University of Southampton in the United Kingdom.
At the time of writing, the Telix share price is trading at $3.59, down 4.27%.
About the TheraPharm acquisition
Telix advised it has now acquired all of the issued capital of TheraPharm for the final upfront consideration of €10.2 million (A$16.5 million). This was done at a price of $3.75 per share. That deal was first announced in late November.
Telix also reported today that TheraPharm has now acquired the IP rights to Y-besilesomab from the University of Southampton.
Y-belY-besilesomab is a therapeutic product that Telix intends to develop for bone marrow conditioning (BMC) in patients undergoing hematopoietic stem cell transplant (HSCT) for blood cancers.
Telix says the agreement today provides it with exclusive rights to clinical data generated by the University of Southampton.
Under the terms of the agreement, Telix will pay the university approximately GBP £0.875 million (A$1.54 million) in future clinical, regulatory and commercial milestones – as well as a low single-digit royalty on net sales of commercial products.
Telix says that early observations from the university’s study demonstrate promising safety and efficacy results for Y-besilesomab as a BMC agent for patients with SALA (systemic amyloid light chain amyloidosis).
In addition, Y-besilesomab has been granted orphan drug designation (ODD) status in Europe for the broad indication of BMC, and has significant potential for fast-track development for the treatment of SALA.
Telix CEO, Dr Christian Behrenbruch, welcomed today’s development, saying:
We are delighted to be entering into collaboration with the University of Southampton, and moving Y-besilesomab into the next stage of development for the treatment of patients with SALA, following appropriate consultation with European regulatory authorities.
Other recent developments
Telix has made other progress lately.
Just last week, it announced to the market that the United States FDA has deemed that the company’s new drug application (NDA) for its flagship drug TLX591-CDx to be sufficient, and that the FDA will begin a formal review.
At the same time, the company announced that it was granted priority review status from Australia’s drugs regulator TGA.
This priority review granted Telix a significantly accelerated timeframe of 150 working days for product dossier review and approval.
About the Telix share price
The company’s progress in 2020 is reflected in the Telix share price, which has gained almost 140% this year. However, it still has a mountain to climb to reach its 52-week high of $4.33.
The company currently commands a market cap of approximately $1 billion.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.