Telix Pharmaceuticals (ASX:TLX) Regeneron $14b revenue partner, 49m shorts face pressure

$40m Regeneron cheque validates RLS as 49m shorts watch

Telix Pharmaceuticals (ASX:TLX) is building momentum after the positive NDA update for Pixclara, its PET imaging agent for glioma, a form of brain cancer. Today, the company added to that momentum by announcing a 50/50 partnership with Regeneron to develop and commercialise a new generation of cancer therapies.

Regeneron is contributing its antibody discovery engine, specifically its proprietary VelocImmune platform, which is designed to generate fully human antibodies that target cancer cells. Telix brings the other half of the equation through its radiopharmaceutical manufacturing infrastructure, regulatory capability, and supply chain expertise, which can then be used to attach those antibodies to a therapeutic payload and deliver them to patients.

What makes this more interesting from a market perspective is the short interest. Telix has around 49 million shares sold short, making it one of the most shorted stocks on the ASX.

If Telix keeps this momentum going, those short positions could start to come under real pressure. At that point, short sellers would need to buy shares back to close their positions, which can add another layer of buying support if sentiment continues to improve.

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The upfront Deal Terms

Back in 2025, Telix deployed a large amount of capital into acquisitions, one of the most important being RLS, a distribution network with up to 30 radiopharmacies. What is becoming clear now is that Telix was not the only one who saw strategic value in that type of supply chain and distribution footprint.

Telix spent A$280M on the acquisition, and Regeneron has now effectively validated that strategy by writing a A$40M cheque to access part of that platform.

For investors, that is a strong signal. It shows Telix’s M&A strategy was not just about buying revenue or adding another business line. It was about building an integrated, vertically aligned radiopharmaceutical platform that is now clearly demonstrating value.

How The Economics Work

The deal covers four therapeutic programs under a 50/50 cost split and profit share structure. Telix co-funds development and, in return, receives 50% of the profits if the programs are commercialised.

If Telix chooses to opt out, the structure changes. The company would stop co-funding development and instead receive milestone payments plus low double-digit royalties, likely in the range of around 10% to 12%.

The real value, though, sits in the first path. The 50/50 profit split is where the upside becomes meaningful. If even one of these programs reaches commercialisation in a large cancer indication such as lung cancer, Telix’s 50% share of profits on a blockbuster product would be worth far more than any other part of the deal.

Why the Partner Matters as Much as the Deal Terms

So investors may be wondering who Regeneron actually is.

It is one of the most credible drug developers in biotech, with a market cap of around US$80B and roughly US$14B in revenue. This is the company behind major drugs such as Dupixent, one of the world’s biggest allergy and inflammation treatments, Eylea, a leading retinal disease drug, and Libtayo, a major PD-1 cancer immunotherapy.

Its VelocImmune platform is also a genuinely strong asset. It has helped produce more than a dozen approved drugs and allows Regeneron to generate fully human antibodies that the immune system is less likely to reject.

That matters because attaching radioactive payloads to those antibodies creates a new class of therapy, biologic-based radiopharmaceuticals, which is exactly where this partnership with Telix becomes interesting.

The Investors’ Takeaway for Telix Pharmaceuticals

The takeaway for investors is that these programs are still preclinical and, by nature, early stage. Real commercialisation is likely still years away and could take five years or more to develop into a meaningful revenue pathway.

Looking at Telix today, we have been buying shares ourselves because we believe the company is set for a turnaround. That said, this remains a higher-risk, higher-reward setup.

What stands out more as we look deeper into this announcement is that the partnership further highlights the value of Telix’s supply chain and distribution network, which we think many investors still underestimate.