Telix (ASX:TLX) enters licence agreement for cancer treatment

Telix Pharmaceuticals (ASX:TLX) has entered into a licence agreement with Eli Lilly, which grants Telix rights to develop and commercialise radiolabelled forms of Lilly’s olaratumab antibody for the diagnosis and treatment of cancers.

Telix’s initial development focus will be on a rare type of cancer known as soft tissue sarcoma. Under the agreement, Telix will pay Lilly an upfront payment of $6.7 million (US$5 million).

The company said Lilly may be eligible for up to $301 million (US$225 million) in payments based upon the achievement of pre-specified development, regulatory and commercial milestones.

“This acquisition mirrors the approach that Telix has taken in building its existing pipeline by in licencing or acquiring assets that have already been proven to be safe for use in humans that can be harnessed as novel radiolabelled targeting agents,” said chief executive officer Christian Behrenbruch.

“This partnership also demonstrates the value that Telix can bring as a capable partner with the expertise in radiopharmaceutical development and manufacturing, to help repurpose or expand the use of promising candidates to better target, find and treat cancer.”

Shares in Telix Pharmaceuticals (ASX:TLX) are trading 2.3 per cent higher at $4.51.