Telix jumps 11.6% as US government indicates proposed medicare changes won’t affect prostate cancer drug

Telix Pharmaceuticals (ASX:TLX) has announced its prostate cancer imaging drug Illuccix won’t be negatively impacted by proposed changes to the US medicare system.

The actual technicalities contouring the topography of US healthcare rebate payment systems aren’t really important more than the news that, if the proposed changes occur, Telix won’t be hit.

There had been fears the system might seek to scrap support for radioimaging drugs meaning that outpatients told to take Illuccix would have to pay more for it, likely hurting sales.

While premium prices generally lift earnings prospects, that isn’t true in America where prostate cancer is more likely to hit those who are less well off.

Management were clearly bullish on the proposed changes on Thursday – which also cover any future drugs of the same class Telix may bring to market.

In the view of Telix CEO Kevin Richardson, it’s advocacy that it has to thank.

“We commend the vision of CMS and the coalition, along with patient groups, for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access,” Richardson said.

“We commend the vision of CMS and the coalition, along with patient groups, for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access.”

TLX last traded at $19.58.