Australian healthcare companies are frequently recognized for their innovation on the domestic share market. However, a few ASX healthcare companies are also expanding their reach into the expansive US market, demonstrating notable achievements that have captured significant attention.
Telix Pharmaceuticals Ltd and Botanix Pharmaceuticals Ltd are two companies making significant strides. Currently, Botanix Pharmaceuticals shares are trading at 39 cents each, while Telix Pharmaceuticals shares are valued at $19.14 per share.
Telix Pharmaceuticals (ASX: TLX)
Telix Pharmaceuticals has experienced impressive growth this year, with its share price surging more than 91% to date, surpassing major market benchmarks. The company’s flagship product, Illuccix, has received approvals from the US Food and Drug Administration (FDA), the Therapeutic Goods Administration (TGA) in Australia, and Health Canada. These regulatory endorsements have significantly boosted revenue projections, with Telix forecasting FY24 revenue between US$490 million and US$510 million.
In its June update, the Monash Investors Small Companies Fund highlighted Telix Pharmaceuticals as a major contributor to its portfolio, recording a 44% gain from the position during the quarter. Telix’s cancer imaging drug sales have continued to grow at an impressive rate, surpassing $500 million within two years. A key development this quarter was the positive data from a clinical trial of its prostate cancer therapy.
Analysts have also expressed optimism about Telix’s future. The company’s anticipated approval for its Zircaix label in early calendar year 2025 is expected to drive the stock further towards revised target prices. The upcoming regulatory approvals and continued revenue growth present substantial potential for Telix Pharmaceuticals.
Botanix Pharmaceuticals (ASX: BOT)
Botanix Pharmaceuticals has seen its shares rise more than 101% since the beginning of 2024. The company recently gained FDA approval for its product Sofdra, designed to treat primary axillary hyperhidrosis, a condition characterized by excessive underarm sweating. This approval marks the introduction of the first new chemical entity for this condition by the FDA.
The potential market for Sofdra is considerable, with around 10 million individuals in the US affected by hyperhidrosis. The FDA approval enabled Botanix to raise $70 million in capital, which will be allocated towards the US launch of Sofdra. The strategic positioning of Botanix in the US market, coupled with the substantial unmet need for effective treatments for hyperhidrosis, is expected to drive rapid product adoption.
Lennox Capital Partners recently included Botanix Pharmaceuticals in its portfolio, citing the company’s strategic advantage and strong management team. The fund views Botanix’s focus on dermatology and its effective execution strategy as key factors in its anticipated success. Monash Investors also noted significant progress with a 53% return during the quarter, reflecting the positive impact of Sofdra’s market entry.
Telix Pharmaceuticals and Botanix Pharmaceuticals represent two ASX healthcare shares with considerable potential in the US market. Their advancements and achievements underscore their growing influence and prospects. Investors are encouraged to conduct their own research and due diligence before making investment decisions.