Melbourne-based Telix Pharmaceuticals has been one of the largest recipients of the R&D Tax incentive, and has now achieved a rare feat in Biotechnology; commercialising a product, and continuing to grow.
The company reportedly received a more than $12M R&D tax offset refund for activity undertaken during the year ended 31 December 2020, and more than $11M in the preceding period, for their work on cancer diagnostic and treatment.
Telix Pharmaceuticals’ technology uses radio pharmaceuticals to travel through the blood to deliver molecularly targeted radiation – i.e. radiation delivered directly to tumours, rather than to the whole body, or a part of the body.
The Illuccix® treatment, which was recently approved by from the Australian TGA, has two core applications:
It’s the first commercially approved PSMA-PET imaging agent available in Australia, and was also approved by the US Food and Drug Administration last December.
After originally floating on the ASX in November 2017 at a price of $0.65, Telix Pharmaceuticals’ shares are trading above $7 currently, a more than 10 fold% increase in less than five years.
The AFR has reported in August 2022 that brokers value the company between $8.50 and $10.70.
It’s estimated the company sold 3,000 doses of Illucix in April-June and forecast total sales could reach $174.3 million in the year ending in June 2023.
Once the company achieves sales turnover greater than $20M, it can no longer receive substantial refunds under the R&D Tax Incentive, however this is an example of how the incentive can be used as a springboard to launch an Australian success story.