Craig Wong-Pan

Craig Wong-Pan asked about the proportion of the anticipated 25% growth in Telix's precision medicine business that is expected to originate from markets outside the United States.

Answer

Christian Behrenbruch, CEO and Managing Director of Telix Pharmaceuticals, explained that currently, over 95% of revenue is U.S.-based, with European reimbursements only recently secured. He anticipates this mix to change as European markets drive uptake and new markets like Japan contribute, but for now, ex-U.S. revenue is a small proportion.

Craig Wong-Pan asked about the proportion of the 25% growth in the precision medicine business that is expected to come from markets outside of the U.S.

Answer

CEO Christian Behrenbruch clarified that currently, over 95% of revenue is U.S.-based, with ex-U.S. contributions being very small due to recent European reimbursements. He expects this mix to change over the course of the year with increased uptake in Europe and new markets like Japan.

Craig Wong-Pan of RBC Capital Markets inquired about the drivers of the strong 10% growth in Rest of World device sales and whether large tenders contributed.

Answer

CEO Michael Farrell explained that while tenders can cause fluctuations, the growth outpaced the mid-single-digit market rate due to broad strength. CFO Brett Sandercock added that Europe and China were notable contributors to the strong performance.

Craig Wong-Pan of RBC Capital Markets inquired about the drivers of the strong 10% device growth in the Rest of World segment, asking if large tenders were a significant contributor.

Answer

CEO & Chairman Michael Farrell explained that while there can be fluctuations from tenders or fleet sales in markets like Japan, the growth outpaced the mid-single-digit market expectation. CFO Brett Sandercock added that strong results in Europe and improved growth in China were key contributors to the robust performance.

Craig Wong-Pan from RBC noted the slowdown in SaaS revenue growth and asked for details on the performance of different businesses within the segment and whether double-digit growth is still expected.

Answer

Executive Michael Farrell explained that while the company doesn't break out specific growth rates, the MEDIFOX business in Germany is growing ahead of the segment's 8% rate, with Brightree performing in line. He acknowledged lower growth in areas like skilled nursing facilities. Farrell reiterated guidance for high single-digit revenue growth for the overall SaaS business but emphasized a focus on achieving double-digit net operating profit growth through portfolio management and targeted investments.

Craig Wong-Pan asked for the key drivers behind the 9% device growth in the Rest of World segment and questioned the contribution from higher-priced AirSense 11 sales.

Answer

CEO Michael Farrell stated that while there was some positive price/mix impact from the ongoing AirSense 10 to AirSense 11 transition, the "vast majority" of the 9% growth was driven by volume. He credited strong execution in demand generation and competitive performance across the 140 countries in that region.