Hi Guys,
Buying ahead of a regulatory decision can be extremely dangerous, especially now the lawyers are involved:
On July 23, investors in Telix (TLX) saw the price of their American Depositary Shares significantly fall after the company revealed that it received a subpoena from the SEC. TLX’s revelation has prompted national shareholders rights firm Hagens Berman to open an investigation into whether TLX may have misled investors about certain of its drug candidates, urging TLX investors who suffered substantial losses to submit your losses now.
This week saw TLX endure another leg lower, falling the most in its history, after the U.S. Food and Drug Administration (FDA) issued a Complete Response Letter (CRL) for TLX’s kidney cancer imaging agent, Zircaix, meaning the agency is requesting additional information before the application can move forward. The market took this as effectively a 2nd FDA rejection for its kidney cancer drug.
The CRL doesn’t impact TLX’s revenue guidance for 2025, but it does meaningfully its future valuation/growth with the stock trading on a lofty PE of ~100x for CY25.
As for Clarity, the stocks been on a rollercoaster ride over the last 18 months making it look more like a trading than investment grade stock. We didn’t see anything attractive in this week’s report:
- Revenue of $4.7nmn was up 72% YoY while the Net loss of $64.4mn was up 52% YoY.
CU6 is currently a $1.1bn business which is looking to progress its Discovery Program, aiming to bring key assets to the clinic, TLX has shown this week that this can become a tough journey.
