Telix Pharmaceuticals Limited

Welcome to the T-Lix Full Year 2025 Results and Investor Webcast. At this time, all participants are in a listening mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kai Williamson, SVP of Investor Relations and Corporate Communications. Please go ahead.

Thank you, and thank you to everybody for joining us on this call this morning, this evening, wherever you are in the world. We lodged our annual report and full year results on the ASX about 30 minutes ago. We also have the slides on the screen by our webcast for you to see today. I'm just going to take you through a brief introduction and some disclaimer statements before handing over. If you just move to the slide two, I'm very pleased to have on the floor with us today Chris Berengrook, our CEO and Managing Director, Darren Smith, our CFO, and Kevin Richardson, our CEO of the Precision Medicine business. I should also mention that we have Dr. David Cade, our Chief Medical Officer on the line for the Q&A session. We'll be running through today our strategy, financial results and update on our precision medicine and therapeutic business. If you can move to the next slide, please. I am required just to give you an excerpt from our forward-looking statement, the same statement. So please note that on today's presentation includes forward-looking statements including within the meaning of the US Private Securities Litigation Reform Act of 1995 that relate to, among other things, anticipated future events, financial performance plans, strategies and business developments. These forward-looking statements are based on current information, assumptions and expectations of future events that are subject to change and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These and other risks are described in our filings with the ASX and SFC including in our half-year and only report. The report should not rely on forward-looking statements which are made as early as today's date and the company defends any obligation to update such statements. Please refer to this disclaimer slide in the presentation for further information. With that, I'm very pleased to hand over to Chris to kick off the call.

Thanks very much, Kai, and I hope that my audio is nice and clear, and I certainly appreciate the introduction. Before Darren Smith, our Chief Financial Officer, goes into the numbers, I thought a bit of strategic framing would be useful for investors to understand where the company is heading and, of course, our key accomplishments in 2025. Next slide, please, slide five. Over the last 12 months, we started to put the depth and execution around what has been a multi-year corporate development strategy. It's useful to think of T-LIX as a platform with these five major segments as illustrated on this slide. Moving from left to right, first up of key focus is our therapeutics pipeline, which has grown significantly and now features three programs in pivotal studies, as well as several high-potential earlier-stage programs in rare diseases. I'm going to come back a little bit towards the end of the presentation on this topic. Because of the explosive growth of activity in the radiopharma landscape, we have also pivoted to some extent to an internal innovation model alongside our business development activities. Clearly, when big pharma is willing to pay a billion dollars for an asset that has been in a few months, there's clearly an incentive to do in-house innovation. And so, we now have a significant set of technical and clinical capabilities around fundamental R&D and discovery technologies. In the middle of this vision and the engine room of the commercial business today is what we call the precision medicine business. This is far more than just an ATM machine that throws off a couple hundred million of cash each year. It's a strategic validation of the targets we develop our therapeutic drugs for. It is more robust and streamlined clinical trials because we can see where our drug goes. and it's an early opportunity to build deep relationships with the physician stakeholders that underpin the future of the business. Fourth, one can obviously look at sales and the commercial team simply as SG&A. We view it as building a specialty sales organization that very few companies have. Selling nuclear medicine is not selling a vial or a blister pack. It involves selling complex clinical workflows, and as our product portfolio expands, This is a strategic differentiator because it enables us to build depth with key referral positions and drive preference towards our product. There seems to be some background noise. If somebody needs to mute, they should do so. It's also fair to note that in the major markets, this is a significant financial investment that most of our competition, both present and emerging, cannot afford to undertake. Lastly, you can develop all the great ideas you want and convince people to buy them, but if you can't deliver them reliably every single day, you aren't going to succeed. In most industries, vertical integration is probably wasteful and doesn't offer much of a moat. In radiopharmaceuticals, where you're dealing with products that have shelf lives of hours to days at most, there's a huge amount of market share ownership dynamic, intellectual property, and customer differentiation in how you deliver. This is why we have invested over half a billion dollars in the last year's to better control our destiny and pave the way for high-value therapeutic products. Next slide, please. To do all these things, you need cash, and we have a very high-growth business that made a step change this year, both through organic growth of our precision medicine business and through acquisition. We expect all of our revenue streams to continue to diversify and grow in 2026 and beyond, and Darren will cover this off on guidance later in this presentation. Kevin is also going to frame this in terms of the core growth of the precision medicine portfolio, which is extremely exciting. The key point is we have a hypergrowth business, and it generates the cash we need to aggressively expand, further diversify our revenue, and dominate the field. Slide seven, please. This slide puts the whole strategy into perspective. As I've already said, to deliver on our bold vision for being the dominant player in radiopharma, we need a cash-generative business. We have one, and we grew it significantly this year with revenues exceeding 800 million U.S. dollars or over 1.2 billion Australian pesos for anyone that prefers their greenback served with shrimp on the barbie. Our margins have remained extremely stable despite competition, and this excellent commercial performance enabled us to invest half a billion dollars into growing our product pipeline, funding the best commercial team in the industry, and building our infrastructure and supply chain. Think about that. half a billion dollars to grow the future value of a company from earnings without shareholder dilution. Telex is a very unique and valuable story. Moving on to slide eight, please. Before handing over to Darren, I thought it would be useful to give you a condensed view of our priorities for 2026. I get a lot of feedback that Telex is complicated, but it really isn't. This year is about doing three things and hopefully doing them better than we did last year. One, We are going to continue to grow our core business around our approved products. We actually did get a new and innovative product approved by the FDA last year in Gazellex that also leverages the Artemis isotope production acquisition. The launch of Gazellex has been successful, and it is not only growing our ASP and market share, it will pave the way for many future products through both the RLS network and partner distributors, with Zerkayx being the next, you know, prime example of this. of this technology platform. Two, we have two new products to launch, PixClara, which is known as PixLumi in Europe. This is for glioblastoma, and Xerkayex for renal cancer. We understand the disappointment that these did not get approved last year, but this is the price of being at the forefront of innovation in new technology areas. While people are well aware it has been a tumultuous period within the FDA itself, we also made certain we took valuable learnings from the experience. We have made extensive changes to the management team, we boosted our regulatory affairs capabilities, and these programs are in good shape for resubmission and approval this year. They are highly anticipated products and will become significant revenue streams, and we have not taken our foot off the gas pedal in terms of market readiness for these products. We are preparing to launch, and I want to make that very clear. Last of all, we have several very high-value clinical programs. This is not an exhaustive list. In fact, we have over 30 sponsored and collaborative studies running from early stage to pivotal trials. But these are the ones that are going to generate the greatest commercial and financial inflection points this year and are the priority in terms of our resources and R&D investment. I note that four out of five of these studies are pivotal or phase three studies. We have imminent data point coming out on PROSPECT Global, which we will take to the FDA to gain clearance to commence part two in the United States. And I remind you that the study has already progressed to randomizing patients ex-US for part two of the study. I'm going to talk a little bit about this later in the presentation. Our bypass biopsy study will complete enrollment this year, and we expect to generate significantly enhanced revenue in 2027 as a consequence of this phase three study. Our current late-stage clinical studies paved the way to our first therapeutic commercial inflection point, likely in 2028. So, these are not distant thoughts. They are all near-term catalysts. And I will come back at the end of presentation to some of the broader sets of upcoming catalysts. Okay. Now, Darren, over to you for the numbers.