Telix Pharmaceuticals announced that it has agreed to buy RLS from its parent company, RLS Group. The acquisition of RLS will expand Telix’s North American manufacturing and distribution platform. Kirkland & Ellis acted as advisor to RLS in the transaction.
RLS is America’s only Joint Commission-accredited radiopharmacy network, with 31 radiopharmacies covering more than 85% of the population. RLS’ revenue for FY 2023 was $158 million, according to the original deal press release from September 23, 2024. It is based in Miramar, Florida.
Telix is a biopharmaceutical company focused on the development and commercialization of diagnostic and therapeutic radiopharmaceuticals. Telix is developing a portfolio of radiopharmaceutical products that aims to address significant unmet medical needs in oncology and rare diseases. Telix is headquartered in North Melbourne, Australia with commercial operations in the U.S., Belgium, Switzerland and Japan. According to its 2023 annual report, Telix generated revenues of $330 million and EBITDA of $15 million during FY 2023.
RLS will continue to service its existing customers and operate as an independent business unit under Telix Manufacturing Solutions (TMS). As part of the TMS business vertical, RLS will become a key node in Telix’s network of U.S. manufacturing and distribution partnerships and is geographically complementary to TMS’ state-of-the-art GMP production facility located in Belgium.
The purchase price consists of an upfront cash consideration of $230 million, and a deferred cash consideration of up to a maximum of $20 million, contingent on the achievement of certain financial and operational performance milestones. The transaction is expected to be cost-neutral to Telix from an operating cash flow perspective.
According to data captured in the LevinPro HC database, this transaction represents the 22nd Specialty Pharmacy transaction of 2024. There were 15 Specialty Pharmacy transactions during 2023, and 27 announced during 2022.
