Lantheus Holdings, Inc.
·
LNTH
At close: Jun 17, 4:00:01 PM EDT
After hours: 5:21:59 PM EDT
Change
Financial Profile
Prev Close
$77.82
Market Cap
$5.39B
Day Range
$76.48 - $78.72
Open
$77.00
P/E Ratio
22.2
52W Range
$73.11 - $126.89
24H Volume
$76.61M
Dividend Yield
0.00%
EPS
3.51
Latest News
Strategic Acquisitions and Pipeline Drive Lantheus’ Growth Ambitions
Lantheus Holdings outlined a robust growth strategy at the Truist Securities MedTech Conference, emphasizing innovation, new product launches, and key acquisitions such as Evergreen and Life Molecular Imaging. Management projects a return to double-digit revenue growth by 2026, with Alzheimer’s and neuroendocrine tumor programs expected to unlock significant market potential.
Analysts Maintain Bullish Outlook Despite Lantheus’ Stock Dip
Despite recent share price weakness and earnings misses, analysts remain optimistic on Lantheus Holdings, setting an average price target of $129.31 and issuing 12 buy ratings. The company’s strong free cash flow, efficient capital use, and focus on radiopharmaceuticals underpin expectations for a significant rebound and long-term growth.
Insider Activity and Market Performance Highlight Lantheus’ Volatility
Recent insider selling and a dip below key moving averages underscore volatility for Lantheus Holdings. However, the company’s 66% potential upside, as forecast by analysts, and its approaching oversold RSI suggest possible near-term entry opportunities, especially as the firm continues to expand its diagnostic and therapeutic product pipeline.
Key Issues
Latest Price Movement
Jun 17
Earnings
Report Date
May 7, 2025
Reported Revenue
372.8M
Miss -5.69%
Avg 1d Change
16.23%
Report Period
Q1 2025
Reported EPS
1.5
Miss -8.93%
Implied Move 1d
12.25%
Transcript
11m 8s
Thank you. Good morning. With me today are Brian Markison, our CEO Paul Blanchfield, our President Bob Marshall, our CFO and Amanda Morgan, our Chief Commercial Officer. We will begin with prepared remarks and then take your questions. This morning, we issued a press release which was furnished to the SEC under Form eight ks reporting our first quarter twenty twenty five results. The release and today's slide presentation are available in the Investors section of our site. Any comments made could include forward looking statements. Actual results may differ materially from these statements due to a risk due to a variety of risks and uncertainties, which are detailed in our SEC filings. Discussions will also include certain non GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is included in the Investors section of our website. I will now turn the call over to our CEO, Brian. You, Mark, and good morning, everyone. Before I dive into my prepared remarks, I'd like to note our press release from last evening where we announced our plans to divest our spec business to Shine Technologies. I would like to extend my heartfelt thanks to the incredible team that has been with the company from the very beginning and has played a vital role in shaping Lantheus into what it is today.
12m 34s
In 2025, we've been laying the foundation for the next chapter of our business. We announced two acquisitions in the first quarter, Evergreen Theranostics and Life Molecular Imaging, both are designed to fuel our radiopharmaceutical leadership and sustain long term growth. We closed on Evergreen in early April, and expect to close the LMI acquisition in the coming weeks. And as I mentioned, we also announced an agreement to Vestar's spec business. Collectively, these transactions accomplish a number of objectives. First, they had immediate revenue growth drivers that complement our business and diversify our revenue. Second, they had exciting programs in late and early stage development, Third, they had key capabilities both people and infrastructure, that will enable the company to deliver novel programs from bench to clinic and ultimately patients. And finally, they streamline and help focus our organization. This year, we are focused on integrating the Evergreen and LMI businesses and finalizing the divestment of our SPECT business. With our strong cash position, and disciplined capital allocation strategy, we are well positioned to continue investing in our capabilities, advancing and selectively expanding our pipeline, and returning value to shareholders. With that, I'll turn the call over to Paul to give an operational and strategic update.
14m 10s
Thank you, Brian. I'm pleased to share more about our recent developments. We believe the acquisitions of Evergreen and LMI will strengthen our radio diagnostic and therapeutic capabilities while expanding our commercial portfolio and pipeline ultimately enhancing our long term growth potential. Evergreen enhances our capabilities across the entire value chain, with scalable radiotherapeutic manufacturing infrastructure and early stage discovery engine and an expanded pipeline, including OCTEVI, a registrational stage PET imaging agent targeting neuroendocrine tumors. Evergreen Springfield, New Jersey site and dedicated team will enable us to manufacture our own clinical stage radiotherapeutics, improve development timelines, and accelerate our pipeline. We also expect to make further investments in this facility and team to enhance our radio diagnostic expertise, and process development capabilities. LMI will provide Lantheus with a commercial radio diagnostic Alzheimer's franchise, a talented team and NeuroSeq, a globally approved F-eighteen PET imaging agent used to detect beta amyloid plaques in patients at risk of Alzheimer's disease. We believe that LMI and Lantheus' combined capabilities will support NeuroSeq's continued growth in the beta amyloid radiodiagnostic market and create a scalable and differentiated platform from which to launch all of our Alzheimer's disease PET imaging agents. Alzheimer's disease affects over fifty million people globally, and remains an area of significant unmet need.
15m 55s
For patients, caregivers, providers, and broader society. We believe the Alzheimer's radio diagnostic market is poised for significant growth, driven by currently approved therapeutics, and over 100 candidates in clinical development targeting beta amyloid. Or tau. When approved, these therapeutics are expected to increase the need for accurate and timely diagnosis. Staging, patient selection, and monitoring of disease. Areas we believe PET imaging is uniquely positioned to address. As such, we believe The U. S, AD radio diagnostics total addressable market could grow to more than $1,500,000,000 by the end of the decade, and $2,500,000,000 by the mid-2030s. And we are positioning ourselves to lead in this market with the potential for multiple differentiated pet agents targeting beta amyloid or tau. Finally, yesterday, we announced an agreement to divest our spec business to Shine Technologies. The spec business has been a foundational part of Lantheus' leadership in nuclear medicine dating back to our days as New England nuclear. We believe now is the right time to divest the spec business as we continue to focus on pet radio diagnostics microbubbles, and radiotherapeutic agents. SHINE's isotope production capabilities make them a natural owner of this business. And they are committed to investing in, and growing the business.
17m 31s
We are grateful to the generations of colleagues who have brought our spec products to patients and are confident that the business and these colleagues will be in good hands with SHINE. We expect the transaction to close by the end of this year. With that, I'll turn the call over to Amanda to provide a commercial update.
17m 50s
Thank you, Paul. I'm pleased to share the progress on our commercial portfolio. Polarify sales for the first quarter were $258,000,000 with year over year volume growth offset by low single digit declines in net price. We have successfully executed our strategy to secure the vast majority of Polarify revenue through strategic partnerships, with key hospitals and freestanding imaging centers. However, with the expiry of POLARIFY pass through status, and the implementation of mean unit cost payment for Medicare, FFS, in the hospital outpatient setting we did experience what we believe will be temporal competitive disruption among smaller, non contracted sites. We plan to maintain our market leadership and will continue to work through these competitive pressures and grow volume and revenue in 2025. We will achieve this by broadening our contracting efforts while maintaining our pricing premium, expanding product availability in both earlier and later calibration time, educating on Polarify's clinical and commercial differentiation, and continuing to provide superior customer service. By 02/1930, we anticipate the PSMA PET addressable market will exceed $3,500,000,000 The key drivers for this growth include the rising incidence and prevalence of the disease, continued conversion of conventional imaging, broader adoption among lower risk patients, and the expansion of the PSMA targeted radioligand therapy.
19m 34s
We are pleased with the FDA's recent approval of Plavicto in the pre chemotherapy MCRPC setting as supported by the PSMA-four trial results and expect this indication to further increase demand for PSMA PET imaging agents such as Polarify. Notably, Plavicta's label now references the use of any FDA approved PSMA pet product for patient selection. We believe there is a market expansion opportunity with our phase four MIRROR study in patients with favorable intermediate risk disease. With this data, our goal is to support future updates to NCCN and SNMMI guidelines to include the use of PSMA PET with Polarify in this patient population which could in turn expand the addressable market. DEFINITY remains the number one utilized enhancing agent with more than twenty years in the market, and more than 20,000,000 echocardiograms performed. In the first quarter of twenty twenty five, DEFINITY achieved approximately $79,000,000 in sales even with the return of competitive supply to The U. S. Market. With our two number one imaging agents in POLARIFI and DEFINITY, we are pleased to continue to serve as the partner of choice for our customers and look forward to the expansion of these relationships with the potential to add NeuroSEQ in 2025, PNT2003, [indiscernible] and MK6240 in 2026 as well as Nav464 in 2027.
21m 16s
I will now turn it back to Brian to discuss our development pipeline.
21m 21s
Thank you, Amanda. We continue to advance our diverse catalyst rich pipeline with a focus on assets that are first or best in class in oncology, neurology, and cardiology. We believe our neurology pipeline of MK6240 and NAV combined with LMI's Nuroseq and PI2620 positions us well to support the diagnosis, staging, patient selection of therapy, and monitoring of patients with Alzheimer's disease. Our portfolios are highly complementary and we believe LMI's established commercial franchise provides a platform that will enable us to quickly realize the value of these assets. We recently announced that MK6240, our next generation tau imaging agent, met its primary endpoints in two pivotal studies assessing its sensitivity and specificity. We plan to submit a new drug application to the FDA in the third quarter of this year and if approved, look forward to bringing MK6240 to the market in 2026. Additionally, we remain on track to submit an NDA for NAV in 2026 as well. We have strengthened our oncology portfolio with the acquisition of Evergreen's Octavia, which has the potential to create a theranostic pair with PNT PNT2003. A registrational stage radio equivalent therapeutic candidate for SSTR positive gastrointestinal pancreatic neuroendocrine tumors or JEPNETs. [indiscernible] [indiscernible] which has the potential to be the first FDA approved radio equivalent to lute a is planned to launch in 2026 pending FDA approval and positive resolution to patent litigation, is ongoing.
23m 22s
Turning to some of our earlier oncology assets, LNTH2503, was acquired with Evergreen, is a potentially best and first in class theranostic pair targeting the CCK2R receptor. We currently have the diagnostic agent paired with 68 in phase two development, and we are excited to report the Phase one therapeutic trial with lutetium-one and 77 is now recruiting patients in Europe. Our theranostic pair for LNPH24-one and 2,402 includes a 68 imaging agent with a lutetium therapeutic agent targeting GRPR. Which is a receptor highly expressed in several tumor types particularly in prostate cancer. We believe there is a potential for this asset to serve independently and in combination with PSMA, since GRPR and PSMA expression are frequently negative correlated. It is important to note that in early disease, GRP RR expression is quite similar to PSMA. The diagnostic agent two thousand four hundred one is already in Phase II development and we remain on track to submit an IND for two thousand four hundred two the therapeutic candidate. LNTH2403 is a preclinical therapeutic agent targeting LLRC15. Which is strongly expressed on multiple malignancies including head and neck, breast, lung, and pancreatic cancer. We are initially focusing on osteosarcoma, for which the FDA has granted both orphan drug and rare pediatric disease designations.
25m 5s
Osteosarcoma is a malignant bone tumor that primarily develops in children and teenagers and is the most common childhood bone cancer with around one thousand new cases diagnosed annually in The US. Finally, for PNT2022, the Phase three SPLASH study recently reached one hundred percent of pre specified overall survival events. The results were comparable to the previously purported forty six percent and seventy five percent readouts and remain confounded by patient crossover within the study. While we continue to work closely with a partner Eli Lilly to review the full dataset, we do not plan to pursue an NDA or further invest in this asset at this time. I will now turn the call over to Bob. Thank you, Brian, and good morning, everyone. I will provide highlights of the first quarter twenty twenty five financials, focusing on adjusted results with comparisons to the prior year quarter unless otherwise noted. Turning to the details, consolidated net revenue for the first quarter was $372,800,000 an increase of 0.8%. Radiopharmaceutical oncology, currently Polarify, contributed 257,700,000.0 of sales flat with the prior year. Precision Diagnostic revenue of $104,400,000 was flat year over year Highlights include DEFINITY at 79,200,000.0, 3.5% higher along with Technolite revenue of 19,700,000.0.
26m 37s
Down 9.2% due to a brief moly supply issue in March now resolved. Lastly, strategic partnerships and other revenue was 10,700,000.0 up 65.1%, due to the continued contribution from use of our investigational asset MK-sixty two hundred forty in third party clinical trials up 10.4%, as well as from the recognition of the first sale milestone from Vorcado of $2,000,000. Gross profit margin for the first quarter was 67%, a decrease of 180 basis points. The decrease is attributable to impacts at margins stemming from our strategic partnership contracting initiatives. The annualization of twenty twenty four PMF network and related supply additions, unfavorable PMF network dose volume mix, as well as under absorption of overhead due to the moly supply shortage late in the quarter partially offset by favorable volumes for Polarify DEFINITY. Operating expenses at 28.3% of net revenue were 147 basis points higher, than the prior year rate. And slightly higher than the previously guided spending levels. As noted earlier this year, increases in operating expenses reflect investments made to support several growth and efficiency initiatives. Notably, research and development increased two fifty one basis points 7.3% of net revenue support of a number of late and early stage development programs.
28m 4s
It is worth noting that the company expensed nearly 3,000,000 of business development expenses largely legal and other third party, support of yesterday's announced divestiture of our spec business to Shine. We do not adjust our management P and L for transaction related expenses when the deal itself is not signed within the same quarter as incurred. Thereby inflating current period profit for the quarter was 144,300,000.0 a decrease of 7.1%. Other income and expense at 4,600,000.0 of income is a result of interest income offset in part by interest expense on our existing debt. Total adjustments in the quarter were 52,300,000.0 of expense before taxes, Of this amount, 21.2 and $8,000,000 of expense is associated with noncash stock incentive plans and acquired intangible amortization. Respectively. 14,900,000.0 is a result of unrealized losses tied to our equity investments in perspective, Radiopharm Therapeutics. 5,400,000.0 is related to r m two milestones, and the remainder relating to acquisition integration and other nonrecurring expenses. Our effective tax rate was 26.5%, The resulting GAAP net income for the first quarter was $72,900,000 and $109,500,000 on an adjusted basis.
29m 23s
A decrease of 7.5%. GAAP fully diluted earnings per share for the first quarter were $1.02 and $1.53 on an adjusted basis. A decrease of 9.5%. Now turning to cash flow.
29m 36s
First, quarter operating cash flow totaled 107,600,000.0 down $19,700,000 from Q1 last year, as working capital, particularly DPO metrics, have normalized from the post SAP implementation and environment. Capital expenditures totaled 8,700,000.0 four hundred thousand dollars lower free cash flow which we define as operating cash less capital expenditures, $98,800,000 20,100,000.0 lower for the previously described reason.
30m 7s
During the quarter, the company invested an additional 5,000,000 in RAD equity and deposited $50,000,000 related to the Evergreen acquisition which closed on April 1.
30m 17s
Taken together, cash and cash equivalents net of restricted cash $938,500,000 at the end of Q1. We have access to our $750,000,000 undrawn bank revolver and are comfortable with our very strong liquidity position.
30m 32s
We are actively monitoring the recent tariff activity, and are working closely with our partners and industry groups to assess any potential impact and advocate for the continued exceptions granted to pharmaceuticals radioisotopes. Is an evolving situation, but at this juncture, direct impact to our business remains de minimis. Turning now to our updated interim corporate guidance for the full year 2025. In anticipation of closing the LMI transaction in the next weeks, we are providing an interim view to business but we'll update a consolidated view 2025 after we have closed that transaction. That said, our view of Clarify performance for the balance of the year has come into sharper focus, We are updating the implicit PLAIRIFY range embedded in the previously guided standalone Lantheus full year view of revenue. That said, we are shifting our implicit point RFI year over year range to flat to low single digit percent growth for the full year versus our prior view of low single digit to mid single digit growth. Commentary on all other Lantheus products remains the same. Evergreen adds approximately 10,000,000 of revenue for the balance of the year, and reduces adjusted EPS by approximately 25¢. In line with prior dilution guidance.
31m 48s
Taken together, revenue is now expected to be $1.551585000000.000 ahead of adding in the potential LMI revenue contribution demonstrating the power of our strategic intent to diversify revenue streams. For adjusted EPS modeling purposes, we continue to expect low single digit dilution from the combined addition of Evergreen and LMI, assuming consistent share count. The divestiture of the spec business should not have any impact on 2025 revenue or earnings, as is expected to close toward the end of the year. But this strategic move should unlock consolidated revenue growth and gross margin expansion in the future. Additionally, the company advanced several R and D projects with positive ROI metrics not previously considered in the prior guide. Therefore, R and D should be approximately 7.5% of revenue. Up approximately 100 basis points for the full year. For now, by only incorporating our ProArify update, r and d investment and including Evergreen, we now see adjusted EPS in the range of $6.60 $6.70, versus the prior guide of $7 and $7.20. We do expect LMI contribution to the company to be accretive to revenue and earnings immediately. We look forward to providing more specifics after the LMI closing. With that, I'll turn the call back over to Brian.
33m 7s
Thank you, Bob. We are diversifying our revenues and setting up the business for continued long term growth. We are driving both commercial and clinical success through our leading diagnostic agents and our diversified pipeline. We are committed to advancing our position as the leading radiopharmaceutical focused company with both new clinical developments and inorganic growth acquisitions. Remaining the partner of choice for nuclear medicine departments and freestanding imaging centers. Delivering sustainable growth, creating long term value for our shareholders and bringing innovative products to patients who need them. With that, we are ready to take your questions.
33m 55s
Operator, please proceed.
33m 58s
As a reminder, to ask a question, please press 11 on your telephone and wait 11 again. We ask that you please limit yourselves to one question. Please standby while we compile the Q and A roster. Our first question comes from the line of Anthony Petrone from Mizuho Financial Group.
34m 29s
Thanks, and good morning, everyone. Hope everyone's well. Maybe start with [indiscernible] In the quarter. Obviously good detail in the prepared remarks, but maybe just a little bit more on the competitive dynamics you're seeing out there certainly by our math, you're looking at a fair amount of share shift here through the March ending quarter. So a little bit on the Polarify competitive dynamics and I'll have one quick follow-up on gross margin.
35m 3s
Okay, Anthony. Thanks. We got the questions. I think Paul will lead it off on the reply. [indiscernible] Anthony. Good morning. So I think in the first quarter, I'll add to what we and Amanda provided in the prepared remarks. First, we were successful in securing the vast majority of our revenues through the strategic partnerships. Those, as we've stated before, have largely been with our longstanding and established hospitals and freestanding imaging centers, many of them who have been with us since launch. Those partnerships were key to stabilizing the business especially amidst the transition to mean unit cost from a Medicare fee for service reimbursement perspective. They're also going to serve us incredibly well as we launch a broader portfolio. In the quarter, we did experience short term competitive disruption. Specifically among the smaller non contracted sites. Due to MUC related reimbursement, price, as well as product availability. These smaller sites have been more recent adopters of PSMA PET imaging, and as a result, they have been outpacing the broader PSMA PET market growth. We continue to work through competitive pressures and some of these market dynamics. But we do plan to maintain our market leadership to grow volumes and revenues and to expand our contracting efforts with some of these higher growth later adopter accounts, as well as expanding product availability to ensure that we can continue to meet the growth and ensure our growth grows closer to of the broader market.
36m 42s
That's helpful. I mean, yep, go ahead.
36m 46s
Ahead. Your follow-up question?
36m 48s
All good, thanks, Brian. Maybe just the spec sale caught us a little bit by surprise. So maybe just quickly on the rationale to exit spec now. And again, on the positive end here, I know you had the MK 6240 headline readout, which was positive. When can we expect, to see that data? Thanks.
37m 12s
Yes, Cindy, thank you. Well, on the on the MK question and the readout of the data, right now we're [indiscernible] all hands on deck to file the new drug application. And then in the not too distant future, we're gonna be happy to showcase the data because it is quite positive. Which gives us a lot confidence going into the submission. On the sale of the spec business, I think it's important to note that if you look at where we're going our recent acquisitions, our pipeline, molecular imaging, theranostic pairs, radioligand therapies, The spec business has been a big anchor for us but not a core to our future growth. So what we're doing is we're looking to streamline unlock value, partner that business with a party like Shine Technologies that is willing to invest further in it. And we will also remain very close to Shine as they proceed and grow that business. Bob, do you want to add to that a little Yeah, guess what I would add is maybe sort of like how you think about what this means to the business in terms of you know, the total is about a hundred and 15 to a hundred and 20,000,000 revenue.
38m 24s
It's been a very stable contributor. So that's what I mean when, you know, as a growth factor, when that comes out of the business, it sort of helps to accelerate the best balance of our portfolio, which we do think, can continue to grow and expand. The gross margin implications, you know, it's a couple hundred basis points of benefit as we look forward. Because the business has a gross margin profile that is much below the company's current average So again, as Brian noted, this does help to unlock additional value while that business then has the potential to grow, in Shine's hands.
39m 3s
Thank you.
39m 5s
One moment for our next question. Our next question comes from the line of Roanna Reese from Leerink Partners. Hey, morning everyone. So I was curious I noticed you tightened your fiscal 'twenty five guidance a bit Could you talk a bit more about what drivers could put you on either the low end or the high end of that guidance by year end? And just tagging on a quick spec divestiture question, I assume it probably frees up certain resources and was curious, where would you pivot those? In terms of contributing to the rest of the commercial or development pipeline?
39m 45s
Roana, could you do me a favor and repeat the second half of that question? I'm not sure I completely got it.
39m 50s
Sure. With the SPECT business divestiture, I was assuming that you were going to free up certain resources or capital, things like that, where would you wanna use those in terms of either the pipeline or commercial efforts?
40m 6s
Got it. I appreciate the clarification. Bob, you want to start off and then Paul will pick it up? Yeah, I'll take it from a guidance perspective. So, Ron, I, you know, appreciate the question. We've narrowed the range, but we're now kinda coalescing around the bottom half of the prior range, and it really is about PLAIRIFY. So we're still staying when basically what we had previously guided It's just that, you know, q one was extremely informative on how the competitive environment would manage Polarify as we came off pass through. Our original view actually was a pretty wide range that contemplated a range of outcomes with the first half being flattish, and then with low single to mid single digit to single to high single digit type of an outcome. So all we've done is here to narrow this range to sort of to to be at the bottom we're taking, like, sort of the bottom half of that original range. The key thing here, though, is we do still expect healthy dose volumes throughout the balance of the year. And, you know, that is you know, why we, you know, we landed where we did.
41m 11s
And, Rona, maybe on your you know, SPECT question, I I think we would characterize really as a couple of things, right? And I'll expand on kind of what Brian and Bob said earlier. But one, this is really about organizational focus. We are ruthlessly prioritizing key growth areas like pet radio diagnostics and radio therapeutics, as well as our DEFINITY microbubbles as future growth drivers. I think it just enables the broader organization to really focus its efforts there. There has naturally been limited investment in the development programs of SPECT. That business, is many decades mature. And similarly from a commercial perspective, it's got relatively little complexity working with just a few key partners. We're incredibly excited for the Schein team to take on those capabilities and to further invest in that business. And so this is really around who's the best owner and what our organizational focus needs to be. To drive continued growth and value creation. And then lastly, there's the financial benefits that Bob mentioned of just it's been a relatively stable business with margins below the company average. And so this really allows us to unlock the full potential of our financial capabilities and then focus the organization wholeheartedly on our future pet diagnostics, radiotherapeutics and microbubbles.
42m 32s
Yeah, and Roana, you know, I think it's important to note that a number of our colleagues will be going with the spec business to shine So if you think about the bigger picture strategically, we're onboarding a team from Evergreen from Life Molecular Imaging with phenomenal capability in molecular imaging and radio diagnostics and therapeutics. And quite frankly, a legacy business that we're not not really nurturing and paying that much attention to as we grow the rest of the business. Is essentially coming out. So moving parts, some leaving unfortunately, and some coming in fortunately, and it's really a natural transition of this business all in line with our strategic intent. Thank you.
43m 20s
One moment for our next question. Our next question comes from the line of Richard Newitter. From Truist Securities.
43m 30s
Hi. Thanks for taking the question. I wanted to maybe just ask on acquisitions.
43m 38s
Just looking at 2026, because that's going to be the first full year where these acquisitions will be in there I think your prior guidance had assumed or your prior comments was low single digit percent dilution from the combination of LMI and Evergreen. Is that still the right way to think about it? It sounds like you think LMI is going to be a accretive right out of the gate. So I'm just wondering if can give us some update on that. Then also, I think last call, you had said you expect 2026 with acquisitions to be a double digit revenue growth potential year. Is that still in the cards as well? Thank you.
44m 19s
Yes. Before Rich, thanks for the question. That is definitely in the cards, and I appreciate you asking. And then Bob, you want to take the rest of the answer?
44m 28s
Yeah, so exactly. The guide for the dilution was low single digit, but combination of both Evergreen and LMI. That guide also contemplated sort of mid year sort of closing on the deals. We closed early. On Evergreen and expect to, you know, to close on LMI in the next weeks. That all being said, yes, the 25¢ that they've given to the midpoint of what we had said previously, at $7.10 is mid single digit, that does include about 50 basis points of additional interest income loss. But at the same time, I do fully expect that we would get to low single digit dilution off that $7.10 number Once we've closed on LMI as well. And then re and then update our guidance after we've closed to take that into consideration. Both revenue and earnings.
45m 22s
Thank you. One moment for our next question. Our next question comes from the line of Matt Taylor from Jeff Jefferies.
45m 33s
Hi, thank you for taking the question. So wanted to follow-up on some commentary from last quarter. You had talked about in 2026, with the combination of your base business and these acquisitions, of, Evergreen and and LMI, being able to sustainably grow in the double digits and I guess I just wondered if there's any change to that thinking, positive or negative, and if maybe you could give us any color around the quantum within the double digits you could grow beyond this year. Yeah, thanks Matt. I appreciate the question. On the quantum I think it's a little early on that front, but on double digits, yes. Let me tell you what we're looking at, right?
46m 15s
It's the potential launch of OCTEVI with combined the potential launch of 02/2003 the potential launch of MK6240, the full annualization of Nuroseq and our plans to grow it, but more importantly perhaps is the anchored growth with Polarify and DEFINITY which we plan to continue. Guys, did I leave anything out? No. So that's what we're looking at. That's what we're excited about. And that's anchoring our double digit growth for 2026.
46m 46s
Thank you. One moment for our next question. Our next question comes from the line of Paul Choi from Goldman Sachs.
46m 57s
Good morning. This is Daniel on for for Paul. We have two questions.
47m 2s
First is, like, are you still thinking that there's a chance that part of this Pilarify revenue would switch to ASP pricing this year?
47m 11s
And what about the trends for 2026 and beyond? The second question is that after the LMI deal closed, what's the current trend of the PET scan market growth in the Alzheimer's scan market? Thank you.
47m 30s
Okay, so on which one do you want to take first the Alzheimer's or the clarify?
47m 36s
Why don't I touch on the Polarify? Why don't I touch on the PET scan Alzheimer's? And then Amanda can maybe touch on the 2025 and future long term growth of the PSMA PEP And before you do that, we are in constant discussions with CMS and we are working with them, and could ASP emerge rather soon? Yes. But, you know, look, it's a little murky down there. So I can't really predict the future. Amanda and the team are really working hard on it. Amanda, you want to comment on that briefly, and then we'll switch it over to Paul.
48m 14s
Yeah, we're listen, we're encouraged by our conversations. It is a fluid conversation. You know what I will share is that the team that we've been communicating with remains the same team at CMS, and as of yet we've not seen impacts due to recent administration changes.
48m 29s
Great.
48m 30s
All right. Well?
48m 32s
So maybe just long term clarify and the PSMA market, I think we remain very excited about the long term potential. We've highlighted our addressable market potential in 02/1930. As being $3,500,000,000 I think that's continues to come into greater focus and affirmation with the Plavicto data as an example and their approval with PSMA-four. And so I think we're very excited about the long term potential potential of PSMA PET. From a pricing perspective near term, right, strategic partnerships are going to anniversary largely in the first half of this year, which will set us up for more support in the long term growth. And so I think we remain optimistic about the overall PSMA pet market in the long term potential for Polarify, especially as we broaden the portfolio to be the go to partner for hospitals and freestanding imaging centers we have the potential to have the largest and broadest innovative portfolio to work with those sites expand our strategic partnerships and continue to support that continued growth. And that includes Alzheimer's. Clearly, Life Molecular remains a separate organization under Life Healthcare today. But just monitoring the trends of overall claims data as a result of Alzheimer's scans, specifically for beta amyloid, but in increasingly for tau.
49m 55s
We see very robust growth in that marketplace. And what we think combining the terrific team and capabilities of LMI with that of Lantheus and our deep f 18 expertise and experience with customers, we're very optimistic about the opportunity in Alzheimer's with NeuroSeq as well as MK6240, now four thousand six hundred ninety four and PI2620 to have a broad, deep portfolio on Alzheimer's. That can be a very meaningful franchise for us.
50m 26s
Thank you. One moment for our next question. Our next question comes from the line of Larry Solow from CJS Securities Inc.
50m 39s
Good morning. Thanks for taking the question.
50m 42s
First question, just on the gross margin and a little bit of higher cost of goods there. You mentioned the the issue with TechneLite. Was gross margin impacted at all just by the I guess, the overall price discounting on PLAARIFI and as PLAARIFI pricing kind of in line with how you expect it to be so far?
51m 4s
Yes, I mean, particularly when I gave the explanation for quarter and on a year over year basis, That particularly was you know, that does have an impact from the impacts margin from the strategic partnerships and so forth. But you know, there were a handful of other things that I mentioned in terms of cost but when you think about maybe relative to what we had expected, that the real drivers from a what our original expectations sort of 67 and a half to 68 why was it, you know, not there? It really kind of came down to a couple of the different factors. Really, one, freight costs were higher but also the dose volume mix at in our PMF network. And what that does is, like, you know, depending on the mix of Clarify where and which of the networks, they're not all the same. So that mix did cause some of the drive some of it from expectations. But, again, going back to the to the pricing aspect, you know, we still remain at a price premium. To our competitors. And, so from an expectation perspective, that was sort of what we had expected.
52m 15s
Thank you.
52m 16s
One moment for our next question. Our next question comes from the line of Yuan Xu. From B. Riley.
52m 26s
Good morning. Thank you for taking our questions. Maybe to ask this question a bit differently. Can you please comment more on the impact of this long term contract you signed for clients in that bucket?
52m 39s
Do they grow in volume or clarify faster than others? Then if we compare the growth rate across academic centers and the community centers, Is there a difference in terms of growth and market penetration?
52m 54s
Thank you.
52m 57s
Yuan, thank you for the question. I think it's very astute. There is certainly a difference in the growth and utilization across the marketplace. We're coming up on four years since approval and launch. We saw some very early adoption amongst leading academics and large scale freestanding imaging centers, the utilization of Polarify and quite honestly other PETCT agents those have been early adopters. And so their utilization rates are far higher than say other parts of the market. And in some cases, that has led to patient wait times. And whereas some of the smaller non contracted accounts are growing higher than the overall market because they've been later adopters. And are earlier in their adoption curves. And so I do think we see a difference in overall utilization. Our focus had been to secure the vast majority of Polarify revenues through strategic partnerships. We believe we've been very successful with that. And our current evolution is to now increasingly focus on those smaller non contracted site that present more near term growth opportunities. And so to some extent, this really comes down to mix and our steadfast focus on securing the vast majority of the business. And now evolving to focus on expanding our contracts with smaller accounts to expanding our out the door times to meet growth where it is for those accounts.
54m 34s
And that's what we're busy doing on a regular basis now.
54m 38s
Thank you. One moment for our next question. Our next question comes from the line Justin Walsh from Jones Trading.
54m 50s
Hi, thanks for taking the question.
54m 52s
Can you discuss how you view the long term opportunity for the GR targeting imaging and therapy in prostate cancer? Specifically, I'm wondering if there's expected clinical value for imaging outside of enabling the therapeutic or if that's the key feature there and if you'd expect therapeutic use ultimately be in the post PSMA setting.
55m 17s
Great question. Let me let me start sort of at the beginning. In early prostate carcinoma, GRPR expression is quite avid and quite similar to PSMA expression. And what we find fascinating about the agent or the target is where one overexpresses, the other could be underexpressing. So, in other words, if you get into later lines of therapy, if PSMA expression is down or depressed, GRPR expression could be quite high and there could be a fair amount of avidity there for a radioligand therapy. The gallium diagnostic agent is in Phase two right now, and we're exploring separate fast track opportunities to see if we can bring that to the market earlier I think there will be an interesting role for the imaging agent in and apart from the therapeutic. And I think with the therapeutic, we're focused right now on getting the IND filed and also getting into the clinic as soon as practical. In phase one. And we think there's going to be a very interesting role because ultimately, these radioligand therapies are not going to be used as single agents. They will be used in combination like any other therapeutic modality in oncology and we think there'll be additive.
56m 41s
So there could be a very interesting role both in very early, mid and late term prostate cancer disease for the therapy and also for the diagnostic.
56m 53s
Thank you. One moment for our next question. Our next question comes from the line of Kemp Dolliver. From Brookline Capital Markets.
57m 6s
Hi. Thank you.
57m 8s
On the smaller accounts in the market for Clarify. Are these accounts that are operating essentially on a spot basis, or are they contracted with others? I'm trying to reconcile your position as a premium priced product with what looks like a customer base that might be commodity, have a commodity mindset. So can you reconcile that for me?
57m 40s
Yeah, I think we're looking at it a little bit differently. I think as we have grown our business, and match that with our growing PMF network, We have 63 PMFs up and running in the in the country. And our strategic contracts were designed to partner us for the long term with our highest volume early adopters. And I think what we're seeing is the smaller accounts that now have some capacity were not initially our early focus as we were dealing with the major institutions. So, Amanda, do you wanna expand on that a little bit?
58m 21s
Yeah, no, thanks, Brian. That's exactly right. As we continue to evolve, as Paul shared in his prepared remarks, as we continue to evolve in the market, we are continuing to grow and expand our product availability and that will be through our earlier and later calibration time That will enable us to not only partner as Brian said, with our largest strategic accounts, but also partner with the smaller accounts, so those later adopters. That are continuing other uptake of of PSMA PET.
58m 54s
Thank you.
58m 55s
One moment for our next question. Our next question comes from the line of Francis Duvel from TD Securities. Hi, this is Frances on for Tara. Can you elaborate on the extent of the MUC based pricing impacts on revenue this quarter compared to other factors like the next net pricing impacts? And are you still guiding to the MUC pricing effect being only about 10% of total patients?
59m 28s
Thanks for the question. So, the MUC based pricing remains impacting about 20% of patients. That is the overlap or intersection, I should say, between Medicare fee for service, relative to Medicare Advantage or commercial payers, and then in the hospital outpatient setting. So that's still around 20% of kind of patients overall when you look at that. I would say, I think when we look at the quarter and some of the dynamics, we looked at MUC pricing, we looked at competitive pricing, as well as product availability in some cases. Fundamentally, I think it's hard to break down into those three because they ultimately all intersect on the impact of customers. As well as the adoption or growth curves in there. And so I think they all had a bit of an issue. Would say MUC is likely more of a transitory impact as customers understand based on the payment timing of claims from Medicare. Does take them a little bit of time to understand what that looks like. The MUC ASP dynamics coming from CMS were quite volatile in the months leading up to January 1 with a number of adjustments to the addendums coming out there.
1h 52s
And so I didn't think it took some time for sites to understand that. We think, you know, sites have a pretty good understanding of their book of business and that should stabilize over time. And then the continued differentiation and availability of Polarify plus our broadening portfolio will support our continued growth.
1h 1m 12s
Thank you. One moment for our next question. Our next question comes from the line of Shay Andy from William Blair.
1h 1m 24s
Great. Thanks for taking our questions. So we're curious about your long term view on Alzheimer's diagnostic market, specifically pertaining to the encroachment of serum based biomarkers for diagnostic purposes. So Biogen on the first quarter call we mentioned for the potential for blood based markers to potentially supplant the need for PET scans. So I'm just curious if you can comment on that. And potentially provide your view there. And a quick follow-up for your 02/1930 Clarify revenue guidance I understand that PSMA addition opportunity is included and that's reading out later this year. But could you help us understand the growth potential for PSMA DC and some of the Actinium-two 25 assets that's moving earlier mines and recently moved to phase three trials. Thank you. All right. So, I'll kick it off with the Alzheimer's answer and turn it over to Paul. First on serology, blood based biomarkers, I think they're very important. And I think if you look at the prostate market, you have PSA as a legitimate marker for detection, follow-up, etcetera, for disease. And I would think in AD or Alzheimer's disease, you'd see a similar pattern, hopefully, where people will get screened with serology and then become candidates for a PET scan or molecular imaging I think when you compare them there is no comparison.
1h 3m
Right? Molecular imaging gives you quantification, it gives you geography, it gives you correlation to treatment outcome and effect. So none of the serology markers can actually do that. They're not that sensitive. Nor are they specific. So if you're looking at specific regions of the brain, for example with MK6240, and looking at longitudinal follow-up, you're looking at what parts of the brain are mostly affected by the NFTs, serology can never do that. At least in my current lifetime, I think. So while I appreciate comments from others, I think maybe they're not totally informed, but there's still comparison with molecular imaging serology. I think serology is a great tool. It's cost effective. It should be used as a screening mechanism. But if you want to know what's happening inside the brain, with Alzheimer's dementia, and geography follow-up, effects of treatment, you really need molecular imaging scan with beta amyloid and tau.
1h 4m 7s
Maybe I'll just add on that and then I'll pivot to the PLAIR PHY piece. 100% agree with what Brian just said. I guess I would just add Andy, when you look at payers looking at roughly mid $30,000 a year therapeutic costs, Over multiple years, it's not hard to imagine that as payer and a physician looks to saying putting on someone therapy that may cost $100,000 over three years, desire to not just do a blood test, but to do couple thousand dollar PET scan that's quite smart money to really understand the location and extent of disease and to effectively monitor that. And so we think there's a symbiotic relationship between serological markers and imaging, the same way we see with PSA from a serological test in PSMA. I think on your earlier question on the PSMA therapeutic market, I think we may remain very encouraged on not only Novartis' results with PSMA-four, but PSMA addition, which we're optimistic about, as well as you said, there are dozens of candidates targeting PSMA. From a radioligand therapy. And that really underscores our addressable market view where the scans associated with RLP could go from roughly 30,000, I believe to almost 200,000 by the end of the decade.
1h 5m 21s
Current RLT patient selection only makes up single digits, for PSMA pet use, we think that can expand not only with RLT, but also with antibody drug conjugates and other therapeutics targeting PSMA. And so we think there's continued benefit in the molecular imaging and the ability to find and follow disease, not only with Polarify but with Alzheimer's, as Brian mentioned.
1h 5m 46s
Thank you. One moment for our next question. Our next question comes from the line of David Turkaly from Citizens JMP.
1h 5m 58s
Good morning. There was lots of debate heading in about, you know, changes that might happen with the reimbursement and then debates about sort of [indiscernible] And it sounds like you're saying these smaller centers maybe never used to clarify and now you're going to focus on them but despite discussions of whether like these images scans might be apples to apples or not, We're just curious, have you seen any evidence of switching either at the large accounts or the small accounts or even on a patient basis so far.
1h 6m 33s
Yeah, I think great question and I appreciate it. I think if you look at our later adopters, smaller accounts, that we have not focused on, There has been a bit of what I would call stroke of the pen risk with them switching over to other agents, postdulillum or whatever, gallium, And we really focused, again, as we've said repeatedly, on our major accounts, right? Those that have the majority of the volume and also providing the most cutting edge treatment. I think in the smaller accounts, again, and we know where every dose is going, because our PMF partners are doing a great job delivering those doses. If they're doing one or two scans a week, we're not going to drop everything and go visit them. So naturally, they're open to a dialogue about price if that's all that matters to them.
1h 7m 26s
Thank you. One moment for our next question. Our next question comes from the line of John Vandermosten from Zacks.
1h 7m 38s
Thank you and good morning.
1h 7m 39s
Two for me. First, under what conditions does it make sense to launch a generic competitor to a branded Radiopharmaceutical?
1h 7m 47s
And then second, what are some of the leading tau candidates in development that would benefit from MKC-two thousand and and PI-two thousand six hundred twenty?
1h 7m 58s
John, I apologize, but you were breaking up on the line. And I hate to do this, but could you please repeat repeat the questions?
1h 8m 7s
Apologies. Under what conditions does a sense to launch a generic competitor to Radiopharmaceutical? And follow-up was looking at the leading tau candidates in development right now which ones might benefit from 6,240 and 2,620? The therapeutic side. Which you're looking at.
1h 8m 27s
Well, think on the tau agents and also our NAV beta amyloid, Because of their greater sensitivity and specificity, any therapeutic candidate that's in the clinic right now in trials will certainly benefit from better patient selection and follow-up. For example, both MK and NAV have the potential to detect very early centeloid count. And they're actually quite frankly more sensitive than blood biomarkers. MK six thousand two hundred forty right now is in 103 approximately academic trials around the world. And over 15 sponsored trials with major pharma partners. And we're working very closely with Janssen, Roche and others Merck, obviously, to name a few. To explore and help them clarify, detect and put patients into clinical trials for their therapeutics. On the generic radio equivalent question, Paul would love to take that question.
1h 9m 34s
Thanks for the question. So, you know, I'm I'm launching our radio equivalent for o three. First and foremost, we always look at our appropriate return metrics to ensure that we're going to generate a return north of our weighted average cost of capital. So we don't just look for growth at any sort. We're looking to ensure we have a positive financial return from those investments. When we look at the Lutathera opportunity, it is a sizable market. We're pleased with their net or two results that we believe could make this a very sizable market. So there's certainly a role for additional products in that space. When we look at the ability to to combine that with Octavio into a theranostic pair, think that could be a meaningful addition to the marketplace. And in addition, it further expands our relationships with nuclear medicine departments and hospitals that are already using, say, Polarify on their pet CT that may already be using NeuroSeq. And so we think this is a good opportunity. And we're focused on bringing this to the market. But suffice it to say, we look very closely at the conditions at demand studies, at market research to ensure that there is a positive return the investments we're making, and we remain optimistic about that ability to bring Octavio and PNT O3 as a theranostic like pair next year.
1h 10m 53s
Thank you.
1h 10m 55s
One moment for our next question. Our next question comes from the line of Richard Newitter. From Truist Securities.
1h 11m 5s
Hi. Thanks for the Just wanted to go back to the Polarify guidance. I'm sorry if you said this and I missed it.
1h 11m 12s
So flat to low single digits for the full year. Had previously said flat first half 25% year over year for PLAYRIFY Is that still intact and we just basically maybe a little less recovery in the back half? To true it up? Or how should we think of any changes to cadence? Thank you.
1h 11m 36s
No, Rich, that's actually fairly astute. I mean, the range does provide, obviously, we delivered a flat call it first first quarter. The math in and of itself, and you're right, the the flat to to low single digits is for the full year. But so from a from a q two perspective, I would you know, sequential growth over q one. But it does sort of imply I'm not gonna get I do expect gross dose volume to to to grow. But I don't wanna get into, you know, the pricing aspect of it. But, you know, what we are saying is, though, that back half would still have the potential to be mid single digit. In the back half. So the language in the overall sentiment remains largely the same. As we get into here with the exception of maybe q two where, you know, we we get into sort of the full effect of of a year's worth of contracting.
1h 12m 35s
Thank you. Ladies and gentlemen, there are no further questions at this time. Thank you for participating in today's conference. This concludes the program. You may disconnect and have a wonderful day.
Key Insights
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LNTH reported Q1 2025 consolidated net revenue of $372.8M (up 0.8% YoY), with adjusted EPS guidance for FY25 now at $6.60–$6.70 (down from prior $7.00–$7.20), reflecting updated expectations for Polarify and the Evergreen acquisition; revenue is expected at $1.55–$1.585B, excluding LMI contribution.
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The company announced the divestiture of its SPECT business to Shine Technologies, expected to close by year-end, which is anticipated to improve gross margin by several hundred basis points in future periods and allow greater organizational focus on PET radiodiagnostics, radiotherapeutics, and microbubbles.
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Two acquisitions were highlighted: Evergreen Theranostics (closed April) and Life Molecular Imaging (LMI, expected to close in coming weeks). Evergreen adds scalable radiotherapeutic manufacturing and a pipeline including OCTEVI, while LMI brings a commercial Alzheimer’s PET imaging franchise (NeuroSeq) and a talented team.
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Polarify Q1 sales were $258M (flat YoY), with volume growth offset by low single-digit net price declines due to competitive pressures and Medicare reimbursement changes; the company expects flat to low single-digit percent growth for Polarify in FY25, with potential for mid-single-digit growth in the back half of the year.
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LNTH reiterated expectations for double-digit revenue growth in 2026 with the full-year impact of acquisitions and new product launches (OCTEVI, PNT2003, MK6240, NeuroSeq), and confirmed that LMI will be immediately accretive to revenue and earnings upon closing.
Recent Transcripts
Lantheus announced SPECT divestiture, two acquisitions, and reaffirmed 2025 revenue guidance with strategic focus shift.
May 07
·
Q1 2025
·
Revenue
$372.8M, +0.8%
·
Acquisitions
Evergreen & LMI
Lantheus delivered record 2024 revenue with strong growth, blockbuster product milestones, and strategic acquisitions.
Feb 26
·
Q4 2024
·
Revenue Growth
+18.3%
·
Blockbuster Sales
Polarify $1B+
Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.
- Market Cap
- $5.4B
- IPO Date
- 6/25/15
- CEO
- Mr. Brian A. Markison
- Fulltime Employees
- 808
- Sector
- Healthcare
- Industry
- Drug Manufacturers - Specialty & Generic
- Country
- US
- Exchange
- NASDAQ Global Market