Telix to buy RLS Radiopharmacies in $250M agreement

Telix Pharmaceuticals has inked a deal to acquire Florida-based radiopharmacy network RLS Radiopharmacies for up to $250 million, the companies announced.

RLS Radiopharmacies is the third-largest radiopharmacy network in the U.S. and distributes PET, SPECT, and therapeutic radiopharmaceuticals through 31 radiopharmacies across 18 states, Telix said. Telix’s lead imaging product is Illuccix, a gallium-68-based PET radiotracer injection kit used in prostate cancer imaging. RLS is a current distributor of Illuccix.

The deal comprises an upfront cash payment of $230 million before adjustments and deferred cash consideration of up to $20 million based on performance during the four-quarters following closing, Telix said. RLS’ revenue for fiscal year 2023 was $158 million, the company noted.

RLS will continue to service its existing customers and operate as an independent business unit under Telix Manufacturing Solutions (TMS), which includes other Telix brands with multi-vendor and third-party relationships such as ARTMS, IsoTherapeutics, and Optimal Tracers, Telix said.

The acquisition expands Telix’s existing distribution network and provides additional supply chain backup to improve its capacity to meet future demand, the company said.

“By combining the ARTMS platform and the RLS network, we can scale up the production of key isotopes and build a stable and consistent supply of PET and SPECT diagnostic tracers, along with therapeutic radiopharmaceuticals across the U.S.,” said Telix Managing Director and Group Chief Executive Officer Christian Behrenbruch, MD, in a news release.

Expected to close early in the first quarter of 2025, the deal is subject to customary conditions, including regulatory approvals, RLS shareholder approval, license transfers, and certain third-party consents, according to the companies.