Up 66% in FY24, will Telix Pharmaceuticals shares continue?

Telix Pharmaceuticals Ltd (ASX: TLX) shares were a standout performer on the ASX in FY24, rallying more than 66% over the twelve months.

This extends the enormous growth Telix has shown since 2019. The stock is up from $1.55 in December of that year to trade at $20.37 just after the open on Tuesday.

You can see this impressive rise over the past year in the chart below.

As we head into FY25, the question is whether this impressive run will continue. Here’s what the experts say.

Telix shares surge in FY24

The meteoric rise of Telix shares last financial year was driven by several key factors. One major catalyst was the company’s quarterly update in April.

In it, Telix reported unaudited total revenue of $175 million, an 18% increase from the previous quarter. Growth was largely due to stronger sales of its prostate cancer imaging product, Illuccix, particularly in the U.S. market.

CEO Dr. Christian Behrenbruch also mentioned Telix’s acquisitions of ARTMS Inc. and IsoTherapeutics Group, LLC, as catalysts. According to my colleague James, Behrenbruch said these transactions “enhance the vertical integration of [Telix]” and “differentiate Telix as a leading independent radiopharmaceutical company.”

Aside from that, the company also completed the listiing of its American Depositary Receipts (ADRs) on the Nasdaq Global Market (Nasdaq) in June.

This sent Telix shares to yet another record high.

What’s the outlook for FY25?

Management has reaffirmed its FY24 revenue guidance, expecting between US$445 million and US$465 million for the year.

This marks a 35%-40% increase over FY23. The company’s optimistic outlook is built on its ongoing investment in research and development. It anticipates R&D spending to grow by 40%-50% in FY24, which could be positive for Telix shares.

Moreover, in July, Telix shares benefited from proposed changes by the Centers for Medicare & Medicaid Services (CMS) in the U.S.

These changes are set to improve payments for diagnostic radiopharmaceuticals. Telix’s Illucix diagnostics product falls under this label.

Once in effect, the new changes could enhance patient access and support the use of Illuccix and other upcoming diagnostic products.

Dr Behrenbruch also said Telix is progressing with three drug approval submissions in the U.S. and is expanding its Phase III ProstACT GLOBAL therapy trial internationally, pending regulatory approvals.

The trial is investigating Telix’s new compound, TLX591, in patients with prostate cancer.

Aside from that, Telix is rated a buy based on the consensus of analyst estimates, according to CommSec.

Foolish takeout

With a strong pipeline, solid revenue growth, and strategic acquisitions, Telix shares could be well-positioned for continued success in FY25.

Investors looking for exposure to the innovative field of radiopharmaceuticals might find Telix attractive.

But remember, past performance is no indication of future results. Conduct your own due diligence.

The post Up 66% in FY24, will Telix Pharmaceuticals shares continue? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.