Telix Pharmaceuticals Ltd — Interim / Quarterly Report 2018

Oct 30, 2018

==> picture [143 x 79] intentionally omitted <==

Quarterly Cashflow Statement: September 2018 Quarter

Melbourne (Australia) – 31[st] of October 2018 . Telix Pharmaceuticals Limited (ASX:TLX) (“Telix”, the “Company”), a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals or “molecularly-targeted radiation” (“MTR”), today releases its Appendix 4C for the September 2018 quarter.

The Company held cash reserves of $37.293 million at the end of September, in line with forecasts. Cash outflows relating to operating expenses were $6.168 million, with total spend on direct R&D activities at $4.465 million. During the quarter the Company received $1.190 million in R&D tax rebate for eligible overseas R&D activities undertaken in 2017.

Significant activities during the quarter included:

• Agreement with Nihon Medi-Physics Co. for a commercial partnership in renal cancer imaging for the Japanese market

• Commencement of a research collaboration with the University of Melbourne to investigate the use of MTR products for improved treatments for colorectal cancer patients

• Receipt from the Department of Innovation, Industry and Science of an advance/ overseas R&D tax finding of A$55.2 million enabling partial recovery of overseas R&D expenditure

• Extension of an agreement with Endocyte, Inc. (NASDAQ: ECYT) regarding the Telix Group’s provision of prostate cancer imaging technology for Endocyte’s phase III “VISION” clinical trial in select European jurisdictions and the US

• Receipt of ethics approval to commence the international multi-centre, open-label phase I/II study for the use of TLX101 to treat recurrent glioblastoma

• Completion of the acquisition of Atlab Pharma SAS including its patent portfolio to support potential indication expansion for TLX591, and the rights to a significant clinical data set that will inform the development of TLX591

Subsequent to the end of the quarter, the Company has announced:

• Conclusion of a distribution agreement with Cardinal Health for the pharmacy preparation and distribution of the 68Ga-PSMA cold kit developed by ANMI SA and commercialised for the US market by Telix USA

• Entering into a strategic collaboration with GenesisCare Pty Ltd in relation to radiation oncology studies as part of Telix’s global multi-centre trials in neuro-oncology and urologic oncology

• Expansion of the partnership with ANMI SA for the scale-up of manufacturing in the USA of the 68Ga-PSMA cold kit in response to increased clinical interest in the product

• • Extension of the MSA with Cyclotek (Aust) Pty Ltd to include TLX250-CDx for imaging patients with clear cell renal cell cancer (ccRCC) using PET

• Completion of an interim analysis of the ZIR-DOSE dosimetry bridging study, which demonstrated that the Company’s change of isotope resulted in a meaningfully lower patient radiation dose

• Commencement of the ZIRCON Phase III study

An Appendix 4C accompanies this announcement.

Page 1

==> picture [143 x 79] intentionally omitted <==

About Telix Pharmaceuticals Limited

Telix Pharmaceuticals Limited (Telix) is a global biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals or “molecularly-targeted radiation” (MTR). The company is headquartered in Melbourne with international operations in Brussels (EU), Kyoto (JP) and Indianapolis (US). Telix is developing a portfolio of clinical-stage oncology products that address significant unmet medical need in renal, prostate and brain (glioblastoma) cancer. Telix is listed on the Australian Securities Exchange (ASX:TLX). For more information visit www.telixpharma.com.

Telix Corporate Contact Dr. Christian Behrenbruch Telix Pharmaceuticals Limited CEO Email: chris@telixpharma.com

Telix Investor Relations (Australia) Kyahn Williamson WE Buchan Tel: +61 (3) 9866 4722 Email: kwilliamson@buchanwe.com.au

Telix Investor Relations (US) Lisa Wilson In-Site Communications Tel: +1 212 452 2793 Email: lwilson@insitecony.com

Important Information

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold within the United States, unless the securities have been registered under the US Securities Act or an exemption from the registration requirements of the US Securities Act is available. None of the products referred to in this release have obtained a marketing authorization in any jurisdiction.

Page 2

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Telix Pharmaceuticals Limited

ABN		Quarter ended (“current quarter”)
85 616 620 369		September 2018

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(9 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a) research and development including
	R&D manufacturing	(4,465)	(8,534)
	(b) product manufacturing and operating	-	-
	costs
	(c) advertising and marketing	(124)	(124)
	(d) leased assets	-	-
	(e) staff costs	(762)	(2,232)
	(f) administration and corporate costs	(817)	(2,677)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	103	269
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	1,190	1,190
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operating	(4,875)	(12,108)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-

• See chapter 19 for defined terms 1 September 2016

Page 1

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(9 months)
			$A’000
	(d) intellectual property	(407)	(407)
	(e) other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(407)	(407)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
03.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	-
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	-	-
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	42,041	48,695
	quarter/year to date
4.2	Net cash from / (used in) operating	(4,875)	(12,108)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(407)	(407)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	-
	(item 3.10 above)

• See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(9 months)
			$A’000
4.5	Effect of movement in exchange rates on	534	1113
	cash held
4.6	Cash and cash equivalents at end of	37,293	37,293
	quarter

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	21,527	26,375
5.2	Call deposits	15,766	15,666
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	37,293	42,041
	quarter (should equal item 4.6 above)

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	172
6.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	951
7.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2
Amounts noted in 7.1 were paid to ABX CRO a clinical research organisation		that specialises in
radiopharmaceutical product development. Executive Director Dr Andreas Kluge is the principal
owner	and Managing Director of ABX CRO.

• See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	Nil	Nil
8.2	Credit standby arrangements	Nil	Nil
8.3	Other (please specify)	Nil	Nil
8.4	Include below a description of each facility above, including the lender, interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter end, include details of those		facilities as well.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development including R&D		5,031
	manufacturing
9.2	Product manufacturing and operating costs		-
9.3	Advertising and marketing		-
9.4	Leased assets		-
9.5	Staff costs		503
9.6	Administration and corporate costs		870
9.7	Other (provide details if material)		631
9.8	Total estimated cash outflows		7,035

10.	Acquisitions and disposals of	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity	Atlab Pharma SAS	None
10.2	Place of incorporation or	France	N/A
	registration
10.3	Consideration for acquisition or	$12,585,652 satisfied	N/A
	disposal	through the issue of shares
10.4	Total net assets	$12,585,652	N/A
10.5	Nature of business	Radiopharmaceutical R&D	N/A
		and commercialisation

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

==> picture [140 x 48] intentionally omitted <==

Sign here: .................. .......................................... Date: 31 October 2018 ~~(Director~~ /Company secretary)

Print name: Melanie Farris

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5