Telix Pharmaceuticals has signed an agreement with RLS (USA) Inc. to acquire RLS from its parent company, RLS Group Ltd.

The acquisition significantly expands Telix's North American manufacturing footprint and establishes the basis of a next-generation radiometal production network to benefit Telix and select strategic commercial partners. 

This acquisition of RLS is aligned with Telix's investment strategy around vertically integrated supply chain, manufacturing, and distribution, further enabling the delivery of future clinical and commercial radiopharmaceutical products. The company views this as a necessary measure to ensure product integrity and delivery and to strengthen and complement existing commercial partnerships.

Telix will leverage RLS' 31 licensed radio pharmacies located in major metropolitan areas across the US to build a radiometal production and distribution network for key therapeutic and diagnostic isotopes alongside last-mile delivery of finished unit doses in relevant markets.

The RLS footprint includes over 100,000 square ft of appropriately licensed expansion space that can be utilised to meet rapidly growing production demand. The acquisition also provides a clear pathway to extensively deploy Telix's ARTMS QUANTM Irradiation System (QIS) cyclotron technology, enabling standardised, high-efficiency and cost-effective production of radiometals.

By augmenting its existing distribution network, Telix aims to provide additional supply chain backup and improve capacity to meet future demand, while broadening access for patients across the entire US market, including under-served populations. The acquisition aligns Telix's pharmaceutical development workforce with RLS' highly skilled and multi-disciplinary radiopharmaceutical manufacturing, supply chain and operational expertise.

RLS will continue to service its existing customers and operate as an independent business unit under Telix Manufacturing Solutions (TMS), which includes other key Telix brands with multi-vendor and third-party relationships such as ARTMS, IsoTherapeutics and Optimal Tracers. As part of the TMS business vertical, RLS will become a key node in Telix's network of US manufacturing and distribution partnerships and is geographically complementary to TMS' state-of-the-art GMP production facility located in Belgium.

RLS' revenue for FY23 was USD 158 million, and the transaction is expected to be cost-neutral to Telix from an operating cash flow perspective. RLS is currently a distributor of Illuccix and, as such, the acquisition is expected to be accretive to Telix, following completion.

Dr. Christian Behrenbruch, Telix Managing Director and Group Chief Executive Officer, said the acquisition is part of the Company's ongoing investment focus around vertical integration and building integrated supply chains.

He added, "Our vision is to build a radiometal production and distribution network fit for the future. By combining the ARTMS platform and the RLS network, we can scale up the production of key isotopes and build a stable and consistent supply of PET and SPECT diagnostic tracers, along with therapeutic radiopharmaceuticals across the US for the benefit of Telix, our partners and the patients we serve. Telix is a trusted brand, recognised for our technical expertise, product quality, scheduling flexibility and delivery reliability. As we grow and commercialise new products, this investment ensures we can continue to deliver to this standard, alongside our key trusted distribution partners."

Stephen Belcher, Chief Executive Officer, RLS, added, "We look forward to becoming part of the Telix Group ecosystem. The RLS management team has emphasised quality, reliability and flexibility, and by leveraging Telix's support, we will be able to expand our capabilities further and, together, build the radiopharmaceutical company of the future. We see this as a very positive step for the company, our people and our customer base."