Australia's Telix Pharmaceuticals Ltd. said it has entered a conditional agreement to buy a radiopharmaceutical production facility in Seneffe, Belgium from Eckert & Ziegler Strahlen und Medizintechnik Aktiengesellschaft, also known as EZAG.
Telix Pharmaceuticals will acquire the facility with cash in addition to related future decommissioning liability. The liability is estimated to be up to €5.2 million over the operating lifetime of the facility, the company said in a release Oct. 3.
North Melbourne, Victoria-based Telix Pharmaceuticals said the acquisition will help it meet future manufacturing needs in Europe. "The European radiopharmaceutical manufacturing landscape is fragmented and lacks the scale-up production capacity to deliver Telix's needs across its product portfolio," the company said in a press release.
The facility consists of approximately 35,000 square meters of land and building space of 2,350 square meters. It also has two installed cyclotron vaults, which are particle accelerators that are used to produce radioactive isotopes, in a controlled area. The site has the capacity for six additional cyclotron vaults if required.
With the acquisition, Telix Pharmaceuticals will be able to manufacture diagnostic and therapeutic radiopharmaceuticals in the region.
Telix Pharmaceuticals also said "the timing of this acquisition is important" as it expects to release two products in Europe in the next 18 to 24 months. It will keep on working with key existing contract manufacturing partners in the region for both backup manufacturing and product delivery.
The transaction is expected to close in the first half of 2020, and Telix Pharmaceuticals said the cost of the acquisition will not adversely affect its financial position in either 2019 or 2020.
Telix Pharmaceuticals makes radiation products for unmet needs in cancer treatment.
