Telix Pharmaceuticals is sliding after announcing an all-stock-plus-contingent merger with ITM

Summary

Telix Pharmaceuticals shares fell about 10% as the hosts discussed its announced $2.35 billion merger with ITM. They highlighted the potential benefits of combining the businesses but cautioned that uncertainty about the timeline for realizing those benefits could be contributing to selling pressure and volatility.

• Telix is an Australia-based company focused on therapeutic and diagnostic radiopharmaceuticals.
• The announced merger with ITM is valued at approximately $2.35 billion.
• Shares declined toward the $11 range after closing the prior Friday at $12.59.
• The hosts cited a 52-week high near $13 and a 52-week low in the $6 range.
• They saw potential longer-term benefits from the merger but suggested that implementation timelines may be weighing on sentiment.
• The hosts cautioned against chasing the volatile stock and briefly cited Intel as another name experiencing elevated volatility.

1. 0:00

   TLX. Uh, this is radio pharmacology and some of you are going to go, "Radio what?" Yeah, this is an Australian based company that does basically commercialization,

2. 0:16

   easy for him to say, and therapeutic and diagnostic radio pharmacology.

3. 0:23

   And they're doing a deal it seems Pete, very likely, that could cause the stock to be worth a lot more. I mean, Friday it closed at 12:59.

4. 0:35

   It broke below that close and tested down to the $11 range. And I think it's going to be interesting to watch and see how people decide to either A, jump on this potential for these two companies or shy away from

5. 0:52

   it Pete. Because right now, I think the shying away side is winning. They're it's down about 10% on the day.

6. 1:01

   >> Yeah, and this this is a stock as you pointed out, it was well over 11, it was over 11:50.

7. 1:07

   The 52-week high is 13. The close last week was 12:59.

8. 1:12

   And yet the results that we're seeing today are pressure on the downside. And it seems like it's getting a little bit further and a little bit further each moment. Now down about 10%. So, it's interesting John, they've got all kinds of different things, new treatments for cancer and so forth. So, you know, kudos to them for going into

9. 1:31

   that world and doing that and this deal that's going to like you just said, this merger that's going to be a 2.35 billion dollar merger. Pretty impressive, but the stock is all the way down as you're very close. It's not it's not at the 52-week low though. 52-week low is in the $6

10. 1:49

    range. So, it's still well above that, but this is one of those where I don't think you want to be chasing this thing around too much because it seems to have plenty of volatility like we talked about with some of the other names today, Intel being one of them.

11. 2:04

    Volatility is going up up up in certain names for all the right reasons. The movement and the understanding of what this is going to mean into the future, and I think that's where people they like it, they like what's happening with the merger, but there might be some time frames that that it takes to change things around a

12. 2:22

    little bit, and I think that's probably why it's down 10% right now.

Transcript from the show's YouTube captions; automatic captions may contain errors. Educational content, not investment advice.