Telix to acquire ITM for $1.65B in radiopharma push

By the numbers: About $1.25 billion (€1.09 billion) of the upfront consideration will be paid in Telix shares. After the transaction, existing Telix shareholders are expected to own about 76.3% of the combined company, while ITM shareholders will hold 23.7%.

• The deal includes another $700 million (€610 million) tied to regulatory and commercial milestones for ITM-11, ITM’s lead radiopharmaceutical. The deal remains subject to Telix shareholder approval and other conditions and is expected to close by the end of 2026.

Why it matters: For Telix, much of ITM’s strategic value lies in its manufacturing infrastructure. The Munich company produces therapeutic radioisotopes and has capabilities spanning lutetium-177, actinium-225 and terbium-161.

• According to Telix, ITM is the only producer of commercially available lutetium-177 manufactured globally. Its isotopes already supply both approved and investigational radiopharmaceuticals.

Zoom in: ITM also brings its own therapeutic pipeline. Its most advanced program, ITM-11, or lutetium-177 edotreotide, targets the somatostatin receptor in gastroenteropancreatic neuroendocrine tumors, or GEP-NETs.

• The Phase 3 COMPETE study has been completed, while another Phase 3 study, COMPOSE, is testing the treatment in additional patient populations. An interim analysis is expected in the first half of 2027.
• The transaction therefore combines two different parts of the radiopharmaceutical value chain: ITM contributes isotope production and a late-stage therapeutic candidate, while Telix brings its commercial infrastructure and own radiopharmaceutical portfolio.
• Management expects the combined company to generate more than $1.3 billion (€1.13 billion) in pro forma revenue and earnings in 2026. ITM’s isotope business is already profitable and cash-generating.

The backstory: ITM has become one of Europe’s best-funded private radiopharma companies after raising hundreds of millions of euros over the past few years. Publicly disclosed equity and equity-like financings since 2021 alone total more than €800 million.

• Earlier financing between 2021 and 2022 totaled about €91 million, including a €25 million strategic investment from Grand Pharma, €33 million from Canada’s ICIF and a €25 million convertible bond.
• In 2023, ITM raised €255 million in what was one of the largest private biotech financings in Germany. Temasek led the round, with participation from BlackRock Alternatives, Qatar Investment Authority, Nextech, ATHOS and Carbyne. The Strüngmann family also invested through ATHOS.
• In 2024, ITM added another €188 million in a Temasek-led round that again included BlackRock and QIA.
• In 2025, Blue Owl Capital provided a non-dilutive credit facility of up to $262.5 million, including $140 million available at closing.

The big picture: Radiopharma companies increasingly see control over radioisotope supply as a strategic asset. Therapeutic radiopharmaceuticals depend on a reliable supply of isotopes with relatively short half-lives, requiring manufacturing, radiochemistry, conjugation, logistics and delivery to hospitals to work closely together.

• That vertical integration is central to the Telix deal. Buying ITM gives Telix not only another therapeutic program but also an established industrial base for therapeutic isotope supply. ITM has a distribution network spanning more than 65 countries and generated $273 million in revenue in 2025, according to Telix. Revenue grew at a compound annual rate of 40% between 2021 and 2025.

Between the lines: Much of ITM’s revenue comes from supplying radiopharmaceutical products to other companies active in therapeutic and diagnostic nuclear medicine. About 10% of revenue, however, already comes from ITM’s own radioligand therapeutics and diagnostics provided under compassionate-use arrangements.

• For ITM, the transaction marks the move from a privately financed radiopharma specialist into a listed, international company. The $1.65 billion initial valuation also provides a benchmark for how investors and management currently value the combination of isotope manufacturing, technology infrastructure and a proprietary clinical pipeline.

The Munich angle: The transaction follows another multibillion-dollar exit from the region: Gilead’s acquisition of Munich ADC biotech Tubulis. At first glance, the ITM transaction looks conservative compared with the Tubulis deal. ITM already generates $273 million in annual revenue and has a program approaching potential approval, while Tubulis was acquired at an earlier clinical stage.

• The difference partly reflects the very different buyers and deal structures. Gilead Sciences is a global pharmaceutical company with a market capitalization above $100 billion and could finance a $3.15 billion cash acquisition. Telix, by contrast, is itself a mid-sized, growing radiopharma company, with a market value of about A$5.7 billion, or roughly $4 billion. Paying mainly in shares allows Telix to pursue a transaction it could hardly finance entirely in cash.
• There is also a difference in what is being acquired. With Tubulis, Gilead gained not only lead asset TUB-040 but also the company’s P5 conjugation technology, a platform that could potentially be used to develop multiple ADCs. ITM offers something different: an established therapeutic pipeline and industrial-scale isotope manufacturing, including a strong position in lutetium-177. The transaction is therefore closer to an operational combination of two radiopharma specialists, giving Telix greater control over its supply chain while expanding its therapeutic portfolio.
• For ITM shareholders, the share-based structure also leaves substantial exposure to the combined company. Their 23.7% stake means investors will continue to participate in Telix’s future performance rather than making a full cash exit.
• That also provides ITM investors with access to the public market after several previous attempts to prepare the company for an IPO were ultimately abandoned because of unfavorable market conditions. If ITM-11 receives U.S. approval and isotope production continues to scale, the value of that Telix stake could increase substantially. The transaction therefore looks less like a conventional cash buyout than a strategic merger in which ITM shareholders retain significant exposure to the upside.

Reality check: Unlike the Tubulis acquisition, however, most of the capital generated by the ITM transaction will not immediately return to investors as cash that can be deployed into the next generation of local biotech companies. The largely share-based consideration could delay that recycling of capital.

• The deal also removes another heavily financed late-stage biotech company from Munich’s independent company landscape. Immunic in Gräfelfing could become another candidate for a major transaction if upcoming clinical data in multiple sclerosis are positive. Beyond that, however, the region currently has few privately backed biotech companies of comparable size.
• A younger group including Ethris, SciRhom, mbiomics and Smartbax, as well as industrial biotech company AMSilk, remains at a different stage of development or is pursuing a different strategy. The Munich biotech ecosystem is therefore far from empty, but after Tubulis and now ITM, the pool of locally based companies capable of generating another multibillion-dollar transaction has become considerably smaller.