On Wednesday, Telix Pharmaceuticals Ltd (TLX:AU) saw its price target increased by Jefferies to AUD15.30, up from the previous target of AUD15.00. The firm has maintained a Buy rating on the stock. The adjustment follows reported growth in the sales volume of US Illuccix, Telix's prostate cancer imaging product.
According to the analyst, Telix's first-quarter fiscal year 2024 sales volume for Illuccix in the United States grew by approximately 23% sequentially. This growth in sales volume resulted in revenue of around US$115 million, despite an assumed 5% price decline from the fourth quarter of fiscal year 2023. The revenue in Australian dollars was approximately A$175 million.
The increased revenue has been attributed to two main factors. First, there has been an increase in the number of PSMA PET scans performed per patient, which suggests a potential US total addressable market (TAM) of US$1.8 billion. Second, the use of PSMA PET diagnostic scans has become more prevalent in the workup for prostate cancer (PCa) treatment.
Looking forward, the analyst has estimated that the fiscal year 2024 sales volume for Illuccix in the United States will reach 108.6 thousand units, an increase from the previous forecast of 102.7 thousand units. This projection is underpinned by the growing adoption and application of PSMA PET scans in clinical settings.
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