Telix Pharmaceuticals Enters Research Partnership with INSERM and ARRONAX

Research and development is one of the most expensive costs for clinical-to commercial-stage pharma companies alike. This is why partnerships, licensing deals and M&As are some of the best opportunities for companies to share costs and expand.

On Monday (April 16), Telix Pharmaceuticals (ASX:TLX) announced a translational research partnership with the French National Institute of Health and Medical Research (INSERM) and the Accelerator for Research in Radiochemistry and Oncology at Nantes Atlantic (ARRONAX). The partnership will allow the companies to explore the feasibility of using clinical targeting agents with astatine.

Astatine is high-energy radionuclide capable of altering tumor microenvironment when attached to a molecular targeting agent for specific cancer cells. Under the agreement, staff and facility time will be funded for over a two-year period, including preparation for pilot clinical studies.

“The Nantes nuclear research cluster is one of the finest translational environments in Europe, with a particular strength and capability in astatine, including production facilities and processes that are capable of making materials for human research,” said Odile Jaume, Telix Europe’s President. “This collaboration has the potential to expand the clinical utility of Telix’s technology and build a set of ‘next generation’ products that may deliver even greater clinical utility to cancer patients.”

INSERM professor Michel Cherel and Dr. Jean-Francois Gestin expressed their thoughts on the partnership, stating they are looking forward to “aiming at truly personalized medicine in France and beyond.”

Professor Ferid Haddad, director of ARRONAX said he believes the partnership “will result in the development of new cancer treatment strategies.”

The Melbourne-based Telix is a biopharmaceutical company with a drive to develop diagnostic and therapeutic products based on targeted radiopharmaceuticals or molecularly-targeted radiation. Some of the candidates in the company’s oncology portfolio include renal, prostate and brain cancer.

The two organizations have already created a highly capable nuclear medicine research cluster in Nantes. The agreement also allows Telix access to a portfolio of intellectual property developed within Nantes which may lead to new products and indications for its therapeutic pipeline.

Known as the number one biomedical research institution in Europe, INSERM has a strong record of industry engagement and technology development in a variety of topics such as Parkinson’s disease and radioimmunotherapy. ARRONAX is world-leader in radioactive isotopes.

Investor takeaway

Following Monday’s announcement, shares of Telix increased 1.61 percent to AUD $0.63. Market Watch said one analyst recommends a “buy” rating in the past month, with a price target of AUD $0.90.

Since Telix’s IPO in November 2017, the share price decreased 27.27 percent in its first month from AUD $0.77 to AUD $0.56 on December 17, 2017. Year-to-date, Telix’s share price has [decrease increase?], and has been on a steady increase is since the beginning of April.

Although the company only went public late last year, Telix is already building a strong reputation with an international partnership like this. While this partnership is set to last at least for the next two years, investors may be interested in following Telix for news on more partnerships and updates to its pipeline.

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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.