The Telix Pharmaceuticals Ltd (ASX: TLX) share price finished the session on Friday up 0.52% to $7.79. Over the past month, the ASX healthcare share has risen in value by an extraordinary 50.1%.
Contributing to this gain was the investor response to the company’s June quarter report on 21 July.
As my Fool colleague Zach reported, it was the cancer diagnostic and treatment business’s “first commercial quarter”, during which time they launched the Illuccix prostate cancer treatment in the US.
The Telix share price rose by 5.51% on the day of the news.
Fund managers backing Telix share price for growth
Telix treatment technology delivers radiation directly to tumours by putting radiopharmaceuticals into the bloodstream to find and target the cancers.
Illuccix is designed to find prostate cancers in high-risk men before surgery. It is also used to detect prostate-specific antigens (PSAs) in men deemed at risk of the cancer returning after surgery.
According to reporting in the Australian Financial Review (AFR), a bunch of professional fund managers are backing the Telix share price for growth.
They include Antares Capital Broadcap Australian Equities Fund, Platinum Asset Management, Perennial Partners, Fidelity, Acorn Capital, and Wilson Asset Management.
Jefferies, Wilsons, Taylor Collison, and Bell Potter all rate Telix a buy with share price valuations between $8.50 and $10.70.
Maiden profit ahead for Telix
According to the article, Wilsons expects Telix to make a $32.8 million loss in FY23 before a maiden profit of $7.7 million in fiscal 2024.
Healthcare analyst Andrew Hamilton from the Antares Capital Broadcap Australian Equities Fund said:
We still think [Telix] shares have further upside. I think that first [June] quarter of commercial sales in Illuccix show itâs a great product. It entered the market and got very good awareness of PSMA (prostate-specific membrane antigen) imaging. Theyâve done a great job on execution, manufacturing, logistics, awareness and the commercial pipeline. For it to all work is a fantastic effort, we expect sales will accelerate.
Platinum Asset Management bought Telix at its initial public offering (IPO) in October 2017. At the time, Telix was selling at a price of 65 cents per share.
Platanium Healthcare analyst Dr Bianca Ogden said:
Weâve always been fans of using imaging as a diagnostic. Because itâs the easiest way to visualise something. We liked the idea when Telix started out to do this properly and consolidate the industry. And weâve always invested in the targeted radiotherapy industry as a whole.
Is Illuccix approved for prostate cancer therapy in Australia?
Yes — the Therapeutic Goods Administration (TGA) gave commercial approval for Illuccix in November 2021. It’s the first prostate-specific radioactive imaging agent to get approval here.
The Telix share price gained 8.13% on the day of the announcement.
According to the article, Telix has another treatment for prostate cancer. It also has treatments for brain cancer and renal cancer that are in Phase 2 or Phase 3 clinical trial stage.
Hamilton said:
From a valuation perspective the biggest thing in their locker is their prostate cancer therapy drug, TLX 591. Thatâs just at the start of Phase 3 trials, so itâs obviously a number of years away. But it still has global leadership in an emerging field, so itâs not a one trick pony. It has a deep pipeline, and we think other products coming behind look good.
The Telix share price is down 4.7% in 2022. This compares to an 8.5% dip in the S&P/ASX All Ordinaries Index (ASX: XAO).
The post Up 50% in a month: Why all these fundies predict more greatness for the Telix Pharmaceuticals share price appeared first on The Motley Fool Australia.
Should you invest $1,000 in Telix Pharmaceuticals Ltd right now?
Before you consider Telix Pharmaceuticals Ltd, you’ll want to hear 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 Ltd wasn’t one of them.
The online investing service heâs 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 are better buys.
See The 5 Stocks
*Returns as of July 7 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Here are the top 10 ASX 200 shares today
- Here are the top 10 ASX 200 shares today
- Why A2 Milk, Qualitas, Telix, and Ventia shares are pushing higher today
- Here are the top 10 ASX 200 shares today
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Bronwyn Allen 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 Scott Phillips.
from The Motley Fool Australia https://ift.tt/qaghSbd