-- Telix Pharmaceuticals' (ASX:TLX) co-development deal with US biotech firm Regeneron Pharmaceuticals will likely be perceived as a solid validation of Telix's drug development pipeline, Citi analyst Laura Sutcliffe said, the Australian Financial Review reported Monday.
The agreement calls for a $40 million upfront payment and includes four initial programs with options for expansion. It entails a cost and profit-sharing structure, which enables Telix to co-commercialize or opt out in favor of royalties and milestones, AFR reported, citing Citi.
Additionally, Regeneron's lack of presence so far in the radiopharmaceuticals field indicates that the deal could open up exposure beyond oncology, possibly expanding the breadth of the tie-up, Sutcliffe reportedly said.
Citi kept its buy rating on Telix Pharmaceuticals, according to the report.
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