Telix (ASX:TLX) share price backtracks despite positive update

The biotechnology company expanded it partnership today

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is having a negative day despite announcing an exciting co-promotion agreement.

At the time of writing, the biotechnology company's shares are fetching for $4.35, down 2.25%.

A worried doctor looks through a glass door.

Image source: Getty Images

Telix expands partnership

Investors appear unfazed by the company's positive release, consequently sending the Telix share price lower today.

In a statement to the ASX, Telix advised it has entered into a co-promotion agreement with Eckert & Ziegler Strahlen und Medizintechnik AG (EZAG).

Founded in 1997 and based in Berlin, Germany, EZAG is one of the world's largest providers of isotope technology. The company specialises in cancer therapy, industrial radiometry, and also nuclear-medical imaging. This technology is utilised for medical, scientific, and industrial use.

Under the agreement, both parties will expand their relationship by combining EZAG's GalliaPharm with Telix's prostate cancer imaging product, Illuccix. This ensures a continuous supply of Ga-68 and Illuccix to healthcare providers across the United States.

GalliaPharm is a generator (Ga-68-PSMA) that is used in the diagnosis of neuroendocrine tumours and prostate cancer. The Ga-68 generator is a small metal box that is easy to transport.

On the other hand, Illuccix is a diagnostic imaging agent for the PET imaging of prostate cancer.

Telix America's president, Dr Bernard Lambert commented:

This important cooperation between EZAG and Telix sales teams is highly complementary to our efforts in rolling out Ga-PSMA imaging across the US. Subject to FDA approval, we will together raise awareness of this state-of-the-art imaging modality and facilitate coast-to-coast access for US men living with prostate cancer.

EZAG executive director, Dr Harald Hasselmann added:

After previously being granted distribution rights for Germany, our home market, the latest collaboration marks another important milestone for our Ga generator GalliaPharm and our nuclear medicine activities. We are pleased to have Telix as a partner and to be able to jointly deliver leading edge diagnostic products to prostate cancer patients in the USA.

About the Telix share price

Over the past 12 months, Telix shares have performed strongly, rising by more than 230%. Year-to-date performance has also trekked higher for the 6 months, up 17%.

Telix presides a market capitalisation of roughly $1.2 billion, with approximately 281 million shares on issue.

Motley Fool contributor Aaron Teboneras 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.

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