In the medical industry, effective new cancer treatments justifiably get a lot of attention -- and the companies that develop and sell them may be found in many investors' portfolios.
However, there's an aspect to the fight against cancer that gets less focus among healthcare sector investors -- the ability to detect the disease early enough to give doctors a real chance to do something about it.
Cancer diagnostics is one of the fastest-growing areas of medicine. A study from Precedence Research forecasts that between 2026 and 2035, its global market size will grow at a compound annual rate of 8.33% to $378.4 billion. Advancements are happening in a host of arenas. For example, the integration of artificial intelligence (AI) with cancer imaging is acting as a force multiplier, enabling more accurate detection.
Telix Pharmaceuticals (TLX +2.20%) is an Australian nuclear medicine company that's developing cancer-targeting molecules that can be attached to radioactive isotopes. When those molecules bind with cancer cells in the body, the associated isotopes can be used to detect the cancer -- or, with more intensely radioactive isotopes, kill the diseased cells.
Image source: Getty Images.
This biotech company, which began operating only 10 years ago, isn't well known yet, but there are three reasons why an investment in its stock could grow into generational wealth for shareholders.
NASDAQ: TLX
Key Data Points
Its revenue is growing rapidly
Telix reported its 2025 results on Feb. 20. Its revenue for the year was $804 billion, up 56%. Management is predicting 2026 revenue will be between $950 million and $970 million, up 19% at the midpoint. The reason for that optimism is the sales progress of its lead products, Illuccix and Gozellix.
Those drugs can be injected into patients by a healthcare provider to help identify prostate-specific antigen-positive cells using positron emission tomography (aka, a PET scan). The company is seeing increased regulatory approvals for Illuccix, and it recently launched Gozellix in the U.S.
As both therapies win approvals in additional countries, their growing uptake will help Telix fund an R&D pipeline that includes four late-stage and six early-stage candidates for detecting and treating various types of cancers, including kidney cancer and glioblastoma, an aggressive and usually fatal type of brain cancer.
Though the company reported a net loss of $5.3 million in 2025 due to launch-related costs and higher pipeline expenses, its shares jumped by 15% to $7.90 on Feb. 20, the day its results were announced.
It's diversifying its portfolio
Telix has two key drugs in phase 3 trials: TLX591 and TLX250. TLX591 is a molecule that will help target and treat prostate cancer. TLX250 does the same for kidney cancer. Both therapies can be attached to lower-energy isotopes for detection purposes, or high-energy isotopes that emit enough radiation to kill the cancer cells they bind with, ideally sparing healthy tissue nearby.
The company is also working to broaden its portfolio, and is currently pursuing approvals for Zircaix for kidney cancer and Pixclara for brain cancer.
It's building a robust competitive moat
Last year, Telix finalized its $250 million purchase of RLS Pharmacies, a radiopharmacy network with 31 locations in the U.S. That gave it an integrated ecosystem that most of its peers lack. Radiopharmaceuticals have shelf lives that are often measured in hours, so owning a distribution network for bringing them to patients gives it a competitive advantage compared to biotechs that must rely entirely on external partners.
Valued at around $2.3 billion, Telix is a smallish mid cap, so it's understandable that the healthcare company isn't well known among U.S. investors yet. However, the analysts covering it appear bullish on the stock. Their average 12-month price target of $21.30 is more than triple its current price of less than $7 a share. As such, it presents a great medium-term opportunity for investors, and possibly an even better longer-term one if its pipeline candidates succeed.
