Should Telix (ASX: TLX) Be on Your Buy List Right Now?
Telix Pharmaceuticals has been on a remarkable run. The biotech’s latest half-year results show rapid growth, a strong commercial foothold, and plenty of momentum in its pipeline. Add to that a healthy balance sheet and growing confidence from institutional investors, and it’s no surprise many are asking whether Telix deserves a spot on their buy list.
A Strong Half-Year Performance
In the first half of FY2025, Telix reported revenue of US$390 million, up an impressive 63% compared to the same period last year. Group gross margins held steady at 53%, with Illuccix — its flagship prostate cancer imaging agent — delivering margins of around 64%.
Importantly, the company posted a positive operating cash flow of nearly US$18 million and ended the period with more than US$200 million in cash, giving it the flexibility to invest aggressively in growth. While the company is still investing heavily in research and development, losses have narrowed as revenue scales.
Why Telix Stands Out
Commercial traction: Illuccix continues to grow rapidly, with increasing dose volumes across major markets. For a biotech company, having a cash-generating commercial product at scale is a rare achievement.
Global manufacturing scale: With facilities and partnerships spanning the U.S., Europe, Australia, and Japan, Telix now has the infrastructure to support growing demand and accelerate the launch of new products.
Pipeline depth: R&D spending jumped nearly 50% year-on-year, reflecting a wide pipeline of diagnostic and therapeutic programs. This positions Telix beyond a single-product story, with multiple shots at future growth.
Financial strength: A strong cash position gives the company room to fund trials, expand manufacturing, and invest in acquisitions without needing to tap shareholders in the near term.
Market confidence: Major broker coverage has recently started with a clear “Buy” view, suggesting the market is still underestimating the upside potential in Telix’s portfolio.
What’s Next
Investors will be watching for further Illuccix rollouts into new markets, clinical updates from late-stage programs, and continued margin improvement as scale benefits flow through. These could all be catalysts for the next leg of growth.
Technical Analysis: Why Timing Looks Attractive
Alongside the strong fundamentals, the chart tells an interesting story. Telix’s share price has recently fallen from record highs and is now sitting in oversold territory on the Relative Strength Index (RSI).
In simple terms, oversold means the stock has dropped quickly and may be due for a rebound as buyers step back in. Historically, when Telix has hit similar levels, it has often bounced higher in the following months. For long-term investors, this creates an opportunity to enter at a more attractive price point rather than chasing the stock at its highs.
The Risks
Biotech is never without risk. Telix is spending heavily, and while its revenue is growing fast, profitability depends on continued execution. Regulatory timelines and trial outcomes also carry uncertainty, and demand for diagnostic products can shift over time.
The Bottom Line
Telix is shaping up as one of the most exciting names on the ASX healthcare front. It combines a profitable commercial product, a global footprint, and a promising pipeline — a mix few biotech companies manage to achieve. While risks remain, the company’s strong results and financial position make it a compelling candidate for investors willing to think medium to long term.
For those looking to add exposure to a high-growth healthcare stock with real-world commercial traction, Telix is well worth considering for the buy list.
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