The oncology success story TLX has ~20 clinical trials underway, which raises questions about how the “new” US health system will deal with such progress. However, their focus is on rare diseases, which seem likely to be more insulated than weight loss or even flu drugs. Unfortunately, Kennedy is far from predictable and could potentially cut funding for rare diseases if he perceived more benefit from utilising the funds elsewhere. The company is progressing extremely well, with market share gains having been made for Illuccix vs competitor LNTH based on “convincing clinical data and great service”, but similar to CSL, sentiment could be damaged for healthcare stocks with exposure to the US into 2025.
- We like TLX as a business, but it’s expensive and capable of quickly dropping 10-15% on bad news out of the US.
MM likes TLX below $20
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