Telix Pharma Ltd (TLX)
Wondering what your thoughts are on TLX.
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Answer
Hi Barbara,
TLX has been under pressure on a few fronts:
- It’s on the end of a lawsuit which alleges that TLX and certain executives made false or misleading statements, or failed to disclose material information about its business, including the progress of its prostate cancer therapeutic programs and the quality of its supply chain and partners – not as good look and where there is smoke, their is usually fire….
- At a higher level, they’re also suffering from weakness across the healthcare sector generally, and then, the prospects of higher interest rates puts the cherry atop a pretty average tasting cake at the moment!
The recent fall from grace demonstrates why MM rarely ventures into the biotech space that delivers too many binary outcomes for our appetite. We acknowledge, this is a real business, not one “hoping” for trails to come good, with revenue expected to increase from $US515mn in FY25 to $US1.1bn by FY27, but we are unlikely to break a long-term habit and buy this biotech.
That said, it’s looking okay from a risk/reward perspective below $11 for more aggressive traders/investors.
