Telix Pharmaceuticals, already established in developing and selling targeted radiation products for cancer, is acquiring Isotope Technologies Munich (ITM) in a $1.65 billion deal that will form a combined company with greater diversification and scale in the growing global business of radiopharmaceuticals.
The transaction announced late Sunday continues the dealmaking streak for Telix and comes amid increasing consolidation in the radiopharmaceuticals sector. Telix and ITM expect to close their transaction by the end of this year.
Munich, Germany-based ITM already has a commercial presence as a supplier of 177Lu and other radioisotopes to entities in nuclear medicine. This global manufacturing and distribution network will add to Telix’s own infrastructure. Telix said privately held ITM’s radioisotope manufacturing business generated $273 million in revenue, driven by growing global demand for targeted radionuclide therapy (TRT) and the use of radioisotopes in commercialized products and therapies still in development.
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The ITM pipeline is led by 177Lu-edotreotide, code name ITM-11, a radiopharmaceutical designed to target somatostatin receptors. Though the FDA last month rejected ITM’s application for the therapy as a treatment for gastroenteropancreatic neuroendocrine tumors (GEP-NETs), the regulator only cited manufacturing issues at a third-party commercial facility and raised no concerns about the therapy’s clinical data or safety. ITM said it planned to resubmit its application to the FDA in this indication. An additional Phase 3 study is evaluating the therapy in aggressive Grade 2 or Grade 3 somatostatin receptor-positive GEP-NETs. An interim analysis is expected in the first half of 2027.
Telix said ITM is profitable and potential approval and launch of ITM-11 offers additional financial upside. The company added that ITM’s pipeline complements its own portfolio of commercialized theranostics, products that pair a precision diagnostic with a targeted therapy to diagnose and treat disease. The top Telix product is Illuccix, which has regulatory approvals in prostate cancer. The newest Telix product is Pixclara, a drug for glioma approved by the FDA last week to differentiate this brain cancer from treatment-related change in adults and pediatric patients age 1 and older.
The Telix pipeline includes three assets in pivotal clinical testing for prostate cancer, recurrent glioblastoma, and kidney cancer. Melbourne, Australia-based Telix, which trades on the Australian Securities Exchange and on the Nasdaq in the U.S., reports its financials in U.S. dollars. For 2025, Telix reported $803.8 million in revenue, up 56% from the prior year. Telix projects that 2026 revenue of the combined company will top $1.3 billion.
Some of Telix’s growth reflects acquisitions. Investing in various aspects of the radiopharmaceuticals supply chain, Telix has purchased four companies in the past four years. The most recent completed deal was last year’s $230 million buyout of RLS, a U.S.-based radiopharmacy distribution network. In a prepared statement, Telix Managing Director and Group CEO Christian Behrenbruch said the merger with ITM positions his company at the forefront of the consolidation happening as the radiopharmaceuticals industry matures.
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“By combining our complementary strengths, we will create a company with commercial scale, world-leading supply and the most exciting theranostic drug portfolio in the sector,” he said.
The big player in radiopharmaceuticals continues to be Novartis, which sells the prostate cancer therapy Pluvicto and the GEP-NETs treatment Lutathera. Both products came from acquisitions. A recent FDA decision is bringing new competition to Lutathera. Last week, the FDA approved Curium Pharma’s Bexlutry, a radioligand equivalent to Lutathera, as a treatment for GEP-NETs. Private equity-backed Curium has also been acquisitive. It’s in the process of closing its $8 billion purchase of radiopharmaceuticals company Lantheus.
Recent years show a broader trend of radiopharmaceuticals M&A activity. From 2023 to 2025, Eli Lilly, AstraZeneca, Sanofi, and Bristol Myers Squibb each acquired radiopharmaceutical companies or assets. Beyond gaining clinical-stage pharmaceuticals, these deals brought the big pharma companies important manufacturing capabilities. New companies are also making a splash in the space. The first biotech IPO of 2026 was Aktis Oncology, a clinical-stage company developing radiopharmaceuticals with potential advantages over currently available products in the class.
In a Monday research note, analysts at William Blair said ITM brings Telix a product pipeline that enables the combined company to tackle neuroendocrine tumors, a new area for Telix that would diversify its revenue. The deal also continues Telix’s vertical integration strategy and further expands its global manufacturing footprint.
“By building a vertically integrated company with even greater control over the entire radiopharmaceutical value chain, we believe the transaction will allow Telix to further corner the industry and advance a range of product candidates from development through commercialization,” the William Blair analysts said.
The ITM acquisition is a stock deal. The terms call for Telix to pay $1.25 billion in the form of its shares that will be released to ITM shareholders as Nasdaq-listed American depositary shares. Telix will also assume $302 million of ITM’s net debt. ITM will cover $96 million of the transaction expenses related to management’s purchase of equity in the combined company.
The milestone payments break down to up to $250 million upon FDA approval of ITM-11 across three different indications, the first of which is expected to be Grade 1 and 2 GEP-NETS. Up to $450 million could be paid out if ITM-11 achieves net global sales of $150 million in fiscal 2030. The company has not yet determined whether those payments will be made in cash or Telix shares.
The ITM acquisition still needs approvals from Telix shareholders and regulators. A Telix shareholder meeting is scheduled for November. When the deal closes, Telix shareholders will own about 76.3% of the combined company and ITM shareholders will own about 23.7%.
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