Telix Radiopharmaceutical Production Facility Buildout Commences

Melbourne (Australia) and Brussels (Belgium) – 22 March 2022. Telix provides a material update on the development of its radiopharmaceutical production facility in Brussels South (Seneffe) in the Wallonia region of Belgium.

Telix is pleased to provide a material update on the development of its radiopharmaceutical production facility in Brussels South (Seneffe) in the Wallonia region of Belgium.

The state-of-the-art facility will serve as the primary European manufacturing site for Telix’s products, aligning with the Group’s strategic objective of maintaining control and reliability of its supply chain, as well as cost control. It will also be an integral hub for Telix’s R&D activities, specifically in relation to the scale-up of radioisotope production.

Following the decommission and removal of the two pre-existing cyclotrons on the site in late 2021, Telix has secured a €12.1 million ($A18.2 million) debt financing package to help fund first-stage building works, which will include the build-out of a radiopharmacy, as well as installation of the first cyclotron, clean rooms and purification suites (Stage 1). Stage 1 construction works are now underway at the site.

The financing has been structured through low-cost loans, with BNP Paribas and IMBC Group, an initiative of the Walloon Regional Government. IMBC Group is funded by the Walloon Regional Government and private stakeholders from the region, with the objective of enabling investment into industrial projects that will contribute to the Wallonia region’s economic infrastructure, including the future creation of stable and durable jobs.

The loans from BNP Paribas and IMBC Group totalling €10.1 million are on a 10-year term. The remaining €2 million from BNP Paribas is on a two-year, extendable term. All three loans have a two-year repayment holiday period, with repayments due to commence from March 2024.

Telix has applied for €2 million ($A3 million) in grants from the Wallonia Export-Investment Agency (AWEX), a local government agency which promotes foreign trade and investment, which will be used to repay the two-year loan. Telix will also contribute €2 million from existing cash reserves for Stage 1, which is projected for completion in 1H 2023. The total planned capital expenditure for Stage 1 is €14.1 million ($A21.2 million).

Upon completion of Stage 1, Telix will have the ability to produce a wide range of medical isotopes, for use in its own commercial and clinical programs, as well as for other organisations. This will include its prostate and kidney cancer imaging agents (TLX591-CDx and TLX250-CDx) and its therapeutic candidates TLX591 and TLX250. The Company has a vision and plan for the site to become a future hub for radiopharmaceutical R&D in Europe, not only for its own programs but through collaborations with partners, including pharmaceutical and biotech companies, hospitals and universities.

The facility is located within an operational hub that is home to many pharmaceutical and logistics companies, several of whom Telix has existing relationships with, and is in close proximity to logistics networks.

Dr. Christian Behrenbruch, Group CEO and Managing Director of Telix said, “This manufacturing and R&D facility, and our vertically integrated operations, will further differentiate Telix as a global leader in the radiopharmaceutical industry. It is our vision that having the Brussels South manufacturing facility, with its central European location, will provide us with greater control over our supply chain and form an integral part of our R&D capability, which will become increasingly important as we increase our commercial, clinical and compassionate use activity.                        

“It has always been our goal to source low-cost capital to fund the build-out of this site and preserve cash reserves to advance the development and expansion of our diagnostic and therapeutic pipeline. We have achieved that goal. We would like to thank the Walloon Regional Government which has partnered with us throughout the process and has created an environment that is very supportive of the radiopharmaceutical industry.”  

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