This biotech says it will turn over more than $1 billion next year. Is it undervalued?

Telix Pharmaceuticals Ltd (ASX: TLX) has reported a huge jump in full year revenues while also saying it expects to easily beat that amount in the current year.

The drug company said in a statement to the ASX on Friday that full year revenue had come in at US$803 million, up 56% year on year, and at the lower end of its upsized guidance range of US$US800-$US820 million.

The company posted an operating profit of US$29.8 million, well down on the US$55.2 million achieved the previous year, with increases in research and development costs, marketing and manufacturing all taking their toll.

Revenue to soar past $1 billion

Telix provided guidance for the current year, saying it expected to turn over US$950-US$970 million ($1.35-$1.38 billion), while the company would spend US$200-US$240 million on research and development.

Managing director Dr Christian Behrenbruch said regarding the result:

Our strong commercial performance in 2025 provides a platform for continued growth across Telix’s global Precision Medicine franchise. The revenue guidance we are issuing today reflects our confidence in sustaining the momentum of our core cash generative business. Consistent with our stated strategy, we are reinvesting earnings to prioritize the acceleration of our best-in-class therapeutic pipeline, which now includes three pivotal stage trials in prostate, kidney and brain cancer. We also intend to continue to expand the Precision Medicine growth opportunity through label expansion studies and new product launches. In 2026 we are focused on delivery of these near-term priorities to further strengthen the foundations for long-term revenue and earnings growth.

Teliox said its cash balance at the end of the year was US$141.9 million.

The company said its Precision Mdeicine division grew revenue by 22%, “driven by continued increase in Illuccix volumes and successful launch of Gozellix in the U.S”.

In this division, the company earlier this week said it had submitted a marketing authorisation application (MAA) in Europe for its brain cancer imaging candidate, TLX101-Px.

The company said it had been preparing the regulatory packages for Europe and the US concurrently and was “bringing forward the European submission to meet an agreed filing date while aligning with aspects of the U.S. Food and Drug Administration (FDA) package to support the additional application”.

Telix shares were 7.9% higher following the company releasing its full year results on Friday, but they are still well short of analysts’ expectations for the shares.

RBC Capital Markets has a $17 price target for the shares, while 13 analysts surveyed by Tradingview have a range of price targets from $16.35 right up to $32.25.

The post This biotech says it will turn over more than $1 billion next year. Is it undervalued? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Telix Pharmaceuticals. 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.