Here's why the Telix (ASX:TLX) share price is leaping higher today

Telix shares are on the move…

| More on:
Two happy scientists analysing test results in a lab

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Telix shares up 9.88% to $4.56 
  • The company's bone marrow conditioning treatment, TLX66 received Orphan Drug Designation (ODD) status from the United States Food and Drug Administration (FDA) 
  • Being granted ODD enables Telix to receive special benefits of achieving incentivised targets for TLX66 

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is heading north during late morning trade following a company announcement.

At the time of writing, the biotechnology company's shares are selling for $4.56 apiece, up 9.88%.

What did Telix announce?

Investors are pushing Telix shares higher after investors digest the company's latest announcement to the ASX.

According to its release, Telix advised it has been granted Orphan Drug Designation (ODD) from the United States Food and Drug Administration (FDA) for its bone marrow conditioning treatment, TLX66.

Bone marrow conditioning is performed prior to hematopoietic stem cell transplantation (HSCT).

The latter is a procedure where a patient's healthy stem cells are collected from blood or bone marrow before treatment. The stem cells are then safely stored, and given back to the patient after treatment.

The Orphan Drug Act was created by the FDA to motivate biopharmaceutical companies in developing potential medicines for rare or 'orphan' diseases. The ODD provides preferential treatment that enhances a company's standing with the agency.

HSCT is being used increasingly in malignant hematological conditions, such as multiple myeloma and acute myeloid leukemia, and in non-hematological malignancies and rare/immune-mediated diseases.

In 2018, more than 22,700 HSCTs were performed in the United States.

The welcomed decision enables the company to receive special benefits of achieving incentivised targets. This includes eligibility for seven years of market exclusivity after FDA approval, discounted tax credits of 50% of drug testing costs, additional protocol assistance, reduced review times and specific marketing authorisation application fees waived.

Telix chief medical officer, Dr Colin Hayward added:

The granting of an Orphan Drug Designation by the FDA for TLX66, combined with recent encouraging data from prior studies in hematological malignancies and autoimmune disease provides a strong impetus to advance our development plans for TLX66.

This treatment has potential application in a number of hematological cancers and rare diseases and potentially also in the future for conditioning for cell and gene therapies.

Telix share price summary

It's been a challenging couple of months for Telix shareholders, with the company's share price down 42% in 2022.

However, when looking at the past 12 months, the company's shares are hovering around 2% higher.

On valuation grounds, Telix presides a market capitalisation of roughly $1.4 billion.

Should you invest $1,000 in Telix Pharmaceuticals right now?

Before you buy Telix Pharmaceuticals shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Telix Pharmaceuticals wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Two doctors wearing white coats look closely at a medical imaging x-ray as the share prices of ASX 200 healthcare shares improve in FY23
Healthcare Shares

Pro Medicus shares climb 33% in less than a month, have I missed the dip?

Pro Medicus shares have soared. Is it the right time to invest?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords share just rocketed 19% on BIG news

Investors are sending this ASX All Ords share flying on Monday. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Healthcare Shares

Why is this ASX All Ords stock surging 14% today?

This stock is starting the week strongly. But why? Let's find out.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Healthcare Shares

Guess which ASX All Ords stock is rocketing 58% on big US news

What is getting investors excited today? Let's find out.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

3 reasons to buy this quality ASX 200 healthcare share today

A leading expert expects this outperforming ASX 200 healthcare share will keep running hot.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

Brokers tip 4 ASX 200 healthcare shares to buy now

Healthcare is a defensive sector that can provide useful cover for investors when the market is volatile.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

How Trump's tariffs have created 'upside potential' for CSL shares

A leading expert says CSL shares are now looking ‘cheap’.

Read more »

Shot of a young scientist looking stressed out while working on a computer in a lab.
Healthcare Shares

Telix shares crash 8% on US FDA blow

This high-flying stock has been hit with some bad news.

Read more »