The Telix Pharmaceuticals Ltd (ASX: TLX) share price is taking off on Thursday morning.
At the time of writing, the radiopharmaceuticals company's shares are up 15% to a record high of $14.46.
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Why is the Telix share price rocketing?
Investors have been bidding the company's shares higher today in response to the release of a quarterly update after the market close on Wednesday.
According to the release, during the first quarter of FY 2024, Telix reported unaudited total revenue of US$114.9 million (A$175 million).
This represents a sizeable 18% increase on the US$97.1 million (A$148.1 million) that was recorded during the fourth quarter of FY 2023.
Management notes that its revenue was primarily generated from sales of Telix's prostate cancer imaging product Illuccix.
The vast majority of this revenue was from the United States market, with U.S. revenue growing by 18% quarter on quarter to US$111.8 million from US$95.1 million. This is a quicker growth rate than the 11% increase it recorded in US revenue between the third quarter and fourth quarter of FY 2023.
Guidance reaffirmed
Telix has reaffirmed the guidance it provided to the market in February.
It continues to expect FY 2024 revenue to be in the range of US$445 million to $465 million (A$675 million to $705 million at current exchange rates).
This represents an increase of approximately 35% to 40% over what was recorded in FY 2023.
Management also advised that it continues to expect its research and development (R&D) investment to increase by 40% to 50% for FY 2024. It notes that this includes external and internal costs funded by operating cash flow and is broadly in line with its revenue growth.
On track to achieve major milestones
Telix's managing director and CEO, Dr Christian Behrenbruch, was rightfully pleased with the company's progress and appears positive on its outlook. He commented:
The continued, consistent growth of our precision diagnostics business is further evidence of an effective market growth strategy for our prostate cancer franchise. The dual benefit of an early revenue stream, and the ability to fund our late-stage therapeutic programs ensures we are on track to achieve major milestones in 2024 including the progression of three drug approval submissions in the U.S. and the international expansion of our Phase III ProstACT GLOBAL therapy trial in prostate cancer, subject to requisite regulatory approvals.
The recently closed acquisitions of ARTMS, Inc. (ARTMS) and IsoTherapeutics Group, LLC (IsoTherapeutics) enhance the vertical integration of our business and differentiate Telix as a leading independent radiopharmaceutical company worldwide by adding manufacturing capabilities and facilities, and isotope production technologies to the Telix Group of companies.
The Telix share price is up 62% over the last 12 months.
