Australia-based global biopharmaceutical company Telix Pharmaceuticals has agreed to acquire US-based QSAM Biosciences for $123.1m.

The deal comes after the companies signed a conditional non-binding term sheet for the prospective acquisition.

Telix will also acquire QSAM's lead investigational drug, Samarium-153-DOTMP (¹⁵³Sm-DOTMP), a new kit-based bone-seeking targeted radiopharmaceutical candidate.

The acquisition terms include an upfront payment of $33.1m (A$50.8m), payable as 4,369,914 ordinary shares of Telix.

The deal also comprises contingent value rights that could see additional payments of $90m on meeting clinical and commercial milestones. These payments may be made in cash and/or shares.

QSAM focuses on the development of therapeutic radiopharmaceuticals for primary and metastatic bone cancer.

Its ¹⁵³Sm-DOTMP for bone cancer has applications in pain management and therapy for bone metastases and osteosarcoma, including for paediatric patients.

It complements Telix's focus on oncology therapies and has shown promising safety, efficacy and commercial potential in early trials.

The drug also has an improved safety profile, delivery and optimised production.

Recent data suggest ¹⁵³Sm-DOTMP's efficacy in managing prostate cancer bone metastases pain, addressing a critical unmet need.

Telix also sees potential benefits for patients with metastatic lung and breast cancer, focusing on palliative care and quality of life.

The US Food and Drug Administration (FDA) granted orphan drug and rare paediatric disease designations for ¹⁵³Sm-DOTMP to treat osteosarcoma.

Telix managing director and group CEO Dr Christian Behrenbruch stated: “The acquisition of QSAM provides Telix with an additional near-term therapeutic pipeline asset, further differentiating our innovation position in radiopharmaceuticals and building depth in Telix's key disease focus areas of urological and musculoskeletal oncology.

“Samarium is a highly optimal radionuclide for treating bone metastases, and the combination of orphan drug designation and rare paediatric disease designation status with Telix's demonstrated experience in pharmacy-based cold-kit distribution has strong potential for a rapid pathway to commercialisation of this asset.”