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ASP Isotopes announces major expansion with new supply agreement and acquisition

Nuclear medicine

Edward West|Published

The Pelindaba nuclear research facility outside of Tshwane. The Nasdaq and JSE-listed ASP Isotopes, recently reached a joint venture agreement with the state owned Nuclear Energy Corporate of SA to produce high-assay low-enriched uranium. The company has also announded a.new supply agreement for enriched silicon-28, as well as an independent radiopharmacy acquisition in the US.

Image: Supplied

The JSE share price of ASP Isotopes, an advanced materials company that produces isotopes for various industries, surged by 28% to R210 on Monday after the announcement of a new supply agreement for enriched silicon-28 and a strategic acquisition.

In a business update, ASP Isotopes revealed the acquisition of an independent radiopharmacy in Florida, USA, aimed at expanding PET Labs' nuclear medicine business. This move represents PET Labs' first expansion outside South Africa.

"This acquisition marks an important first step in the planned expansion of PET Labs beyond South Africa. Over the next several years, we expect to grow PET Labs through both brownfield and greenfield expansions, with the goal of ultimately establishing PET Labs as a global leader in the production of radioisotopes for treating various forms of oncology," said Dr Gerdus Kemp, CEO of PET Labs, in a statement.

The Nasdaq-listed company, which obtained a secondary listing on the JSE in August this year following a share-for-share merger with liquid natural gas and helium miner Renergen, stated that the acquisition aligns with PET Labs' strategy to build a vertically integrated supply chain for the manufacture and distribution of radiopharmaceutical products.

The acquisition is expected to positively impact revenues in the 2026 financial year, as well as earnings before interest, tax, depreciation, and amortisation (EBITDA), and earnings per share (EPS).

The supply contract with a US-based customer for enriched silicon-28 is anticipated to commence deliveries in the first quarter of 2026, marking the company’s largest silicon-28 contract to date, according to the statement.

“Silicon-28 is a crucial material in the development of quantum computing and advanced semiconductor architectures. By eliminating the nuclear spin noise present in natural silicon, enriched silicon-28 provides an optimal environment for qubits, significantly enhancing coherence times and overall device performance,” the statement added.

Global investment in quantum computing and advanced electronics is accelerating, leading to a growing demand for high-purity silicon-28, the company said.

“The ability to supply this material at commercial scale represents a significant step toward establishing a robust and diversified supply chain for the next generation of computing technologies,” said Viktor Petkov, chief commercial officer of ASP Isotopes.

"This substantial customer order for silicon-28 underscores how our Electronic Gases strategy is gaining traction across multiple end markets. Enriched silicon is emerging as a cornerstone material not only for quantum computing but also for high-precision semiconductor and photonics applications,” he noted.

Regarding PET Labs, the group indicated that the newly acquired independent radiopharmacy currently offers only SPECT services, a type of nuclear medicine scan. With PET Labs' expertise, they expect it to begin offering PET services by 2027.

These additional services are projected to enhance revenues and profits in the coming years. “This small acquisition is expected to be accretive to revenues, EBITDA, and EPS during 2026,” ASP Isotopes’ directors stated.

The strategy involves further expanding PET Labs' business and activities in the US and other jurisdictions to meet the increasing demand for radio-diagnostics and radiotherapeutics.

PET Labs has also recently signed a term sheet for an additional acquisition in the US and is in discussions "with multiple independent radiopharmacies in various jurisdictions" for acquisition opportunities, according to the directors.

PET Labs aims to build a radiopharmacy network that is vertically integrated with the capabilities to produce stable isotopes that are subsequently used for the production of radioisotopes, they said.

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