Telix Pharm Ltd

Thank you for standing by and welcome to the TELEX half quarter 2025 results and investor webcast. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Kionne Williamson. Please go ahead.

Thank you and everybody for joining us this morning and this evening for those joining from overseas. My name is Kyanne Williamson. I'm the SEP of Investor Relations and Corporate Communication at Tealix. You can see there our disclaimer. Just moving forward to slide four, I'd like to introduce today's speakers that are on the line with me. We have Chris Barenbrook, our Group CEO and Managing Director. Darren Smith, our Group Chief Financial Officer. Kevin Richardson, CEO of the Tealix Precision Medicine. and Richard Vallex, CEO of Telex Therapeutics. Today we'll be taking you through the H1 2025 financial results presentation lodged earlier today on the ASX and our operational achievements for the half. This call is scheduled to run for one hour and following the presentation, we'll take questions firstly from analysts on the phone and request that you ask one question at a time and hop back in the queue if you have further questions. If we do not get to your questions on the webcast, we will reply to you directly. Moving on to slide five, please. In today's presentation, our business leaders will be talking to the investments we have made in the business to set it up for long-term value creation. This slide illustrates the scale of our business today, spanning development, commercialization, and global production and manufacturing. It's been a rapid transformation. This time last year, we had one approved product, Ellusix, which was commercially just a handful of companies. Today, we have multiple approved products. We are preparing to roll out Ellusix across Europe and are preparing for launches at Cakes and Six Clara. The acquisitions we have made have seen our manufacturing and distribution sites grow to 38, and our workforce has more than doubled, with now over 1,000 employees globally. Next slide, please. We've previously presented our growth strategy that is in place to drive value creation for the long term. You can see the four pillars on the left-hand side of the slide and the achievements we have delivered against each one of this half. These pillars are to grow our precision medicine or commercial stage imaging business and the achievements this half are focused on the goal to grow our share in the PSMA market and bring new products to patients. Kevin will discuss this further. Delivering on our late stage therapeutics pipeline and building our next generation pipeline including alpha therapy candidates. This half we have made solid progress across an array of programs which Richard will take you through in more detail. And finalizing expansion of our global delivery infrastructure, a key highlight this half has been the integration of the RLS business. Chris will take you through this and the key value drivers aligned to our strategy. Firstly, however, Darren will talk you through the financial results for H1 2025 in more detail. So I'll hand over to you, Darren.

Okay, thanks, Kai. And welcome, everyone. From a financial perspective, the first half of 2025 was characterized by strong commercial growth in our precision medicine business and continued investment into building our business for the future. We delivered strong revenue growth in the first half of 2025 with group revenues improving 63% year-on-year and driven by growth in the LUSIC in the addition of third-party revenue from RLS. Our precision medicine revenues were up 30% year-on-year with EBITDA increasing 24%. Gross margins in our precision medicine business remained stable at 64%, reflecting efficient manufacturing of elutics. The group's gross margin was 53%, reflecting the addition of RLS third-party product mix and the associated manufacturing and distribution costs. In this half, we have made a significant investment into our global manufacturing infrastructure to ensure that we are well positioned for long-term growth, and we continue to invest in our R&D pipeline with investment up 47% year-on-year. Following these investments, we generated $18 million in operational cash flows and finished the half year with a healthy $207 million cash on hand. Now moving to the next slide and our group revenues. Felix generated revenues of $390 million. This consisted of $79 million in revenues from RLS third-party sales and $311 million mainly from our precision medicine business. This represents an increase of 63% year-on-year and 41% compared to the second half of 2024. Ellucid continues to deliver strong growth, especially as it relates to volume doses. Kevin will provide more detail later in the presentation. Now moving on to the next slide in the group P&L. As stated previously, The group T&L represents a period of solid growth and strategic investment into preparation for delivering future long-term growth. Group gross margin landed at 53% following the addition of RLS third-party products and RLS associated manufacturing and distribution expenditure. R&D increased 47% to $82 million. As planned, we increased our investment into our therapeutic pipeline to be 54% of our overall investment in R&D from 43% last year. Richard will talk to our therapeutic portfolio later in the presentation. Selling and marketing expenses increased to 13% of revenues from 10% last year as we prepared for product and geographic expansion of our precision medicine business and the addition of $7 million in selling and marketing expenses from RLS. Manufacturing and distribution expenditure, excluding RLS COG, increased to 5% of revenue from 4% last year. driven by investment in our manufacturing and distribution infrastructure in Artemis, isotherapeutics, and multiple TMS facilities. General administration expenses decreased to 12% of revenue from 16% of revenues last year. As a result, adjusted EBITDA declined to $21 million, driven by our investment. Now moving on to the next slide. This slide represents the income statement of our precision medicine business. As you can see, gross margin is steady at 64%. This indicates that we have maintained our operational efficiency of Elusix, enhancing our abilities to reinvest in growth. As planned, we're prepared for new product launches and geographic expansion increase in selling and market expenses to 12% of revenue, facilitating the build-out of our commercial infrastructure ahead of the expected revenue growth. This increase was offset by reductions in percentage of revenue spent on R&D and general and administration. As a result, the precision medicine EBITDA improved $20 million year-on-year, driven by 29% revenue growth. Moving to the next slide of our CMS business.