Telix Pharmaceuticals moved to acquire Texas-based CDMO IsoTherapeutics in a cash and stock deal valued at $13.6 million, expanding the Australian biotech’s manufacturing footprint in the U.S.
Under the terms of the deal, Telix will shell out $2 million in cash and $6 million in shares upfront with and additional $5 million in cash linked to milestone payments over 12 months after the closing, the company said in a February 27 press release
An additional $600,000 in cash payments will be made over the next 2 years based on revenues from existing IsoTherapeutics customers.
The two companies are not unfamiliar with each other. Last November, Telix offered to pay Qsam Biosciences $33.1 million for its phase 1 radiopharmaceutical for bone cancer. The drug was originally developed by IsoTherapeutics.
In addition to its manufacturing operations, the privately held IsoTherapeutics also provides services for radiochemistry and bioconjugation development.
“With the agreement to acquire IsoTherapeutics I am pleased to welcome a team of highly recognized industry leaders in bioconjugation and radiochemistry to Telix, as well as further expand our manufacturing footprint in the U.S.,” Christian Behrenbruch, chief executive and managing director of Telix, said in the release.
The IsoTherapeutics facility, which is located in Angleton, Texas, features production infrastructure suitable for clinical use as well as capacity for therapeutic isotopes used in Telix’s development portfolio.