The Telix share price climbs 14% as it boasts of multi billion dollar market opportunity

Telix Pharmaceuticals Ltd (ASX: TLX) is a speculative cancer research business.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price soared 16% today to a record high of $1.16 after the oncology research business presented at a conference held by Macquarie Group Ltd (ASX: MQG).

The company now has a market value of $175 million based on 150.9 million shares on issue, although it has another 67 million shares to potentially come out of escrow on November 15 2019 to mean conservative investors should account for a market value around $253 million. 

Evidently investors have great expectations for a business that is attempting to develop treatments for prostate cancer, renal (kidney) cell cancer, and brain cancer. The therapies for renal and prostate cancer are currently in the Phase III clinical trial stage, with the company boasting that its product pipeline represents a multi-billion dollar market opportunity.

However, clinical research trials are notoriously expensive and the company booked only $702,000 worth of revenue for the quarter ending March 31 2019, with an operating cash loss of $7.34 million. It also had cash on hand of $17.7 million as at the last reporting period. 

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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