In tough environment, Lantheus has cash and plans to use it
A challenging economic environment is constricting biotech deal flow. But for well-capitalized Lantheus, these tough times present an opportunity to build out its R&D pipeline.
Buoyed by a new blockbuster radiodiagnostic, Lantheus Holdings Inc. is now well capitalized in a tough economic environment and rebuilding its R&D pipeline with some new deals.
'We're generating a lot of cash, and we're spending the money on really intelligent, I hope, intelligent, development programs and acquisitions,' CEO Brian Markison told the Business Journal in a recent interview at Lantheus' Bedford headquarters.
Markison became CEO of Lantheus (Nasdaq: LNTH) just over one year ago in March 2024. But he's not a new face at the company. He joined Lantheus' board in 2012 and was its chairperson from 2013 until 2024, when he became the chief executive.
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When Markison first came to Lantheus, it was a very different company, he said. Lantheus was much smaller and owned by private equity. Markison said the company has been through 'a couple of tough patches,' including a 'very difficult period' when troubles with its manufacturing partner meant the supply chain for Definity, a contrasting agent used in echocardiograms, was disrupted and sales dropped.
'We had to cut a lot of expenses. We really cut R&D back,' Markison said. 'When we emerged from that kind of tough period, we invested back in the commercial engine, but we never really had the ability to reinvest in the research and development like we wanted to.'
As Definity sales grew and Lantheus went public in 2015, the company had more options to rebuild its R&D engine.
Rebuilding Lantheus
Markison said he views his leadership as an extension of longtime CEO Mary Anne Heino, who led Lantheus for nine years.
'When I was on the board, I recruited Mary Anne and then promoted her to CEO, and it was probably one of the best moves I've ever made with people. And she did a really great job. And all I'm doing right now is trying to build on everything that she put together and take it to another level,' Markison said.
Under Heino's direction, Lantheus completed its merger with New York-based oncology company Progenics Pharmaceuticals in 2020. That deal gave Lantheus Pylarify, a radioactive diagnostic agent for prostate cancer. Pylarify exceeded $1 billion in net sales in 2024, which Lantheus said made it the first-ever blockbuster radiodiagnostic.
Lantheus' cash and cash equivalents grew to $912.8 million at the end of 2024, up from $713.7 million the year prior.
The success of this Pylarify deal has opened the door for further acquisitions, and Lantheus is taking advantage of the opportunity to build its pipeline.
'Now we're really basically, with recent acquisitions, totally rebuilding the R&D capability,' Markison said.
At the start of April 2025, Lantheus completed its acquisition of Evergreen Theragnostics Inc. This marked Lantheus' fifth deal since January 2024. Lantheus said the company's transactions and in-licensing deals in 2024 brought five new assets to its pipeline.
'If we find something that we think could be a leapfrog over internal programs, and the price is right, if you will, then we'll trade up. We'll make that bet. And we have the fortunate position where our lead assets are throwing off a lot of cash. The organization's relatively efficient, so we're able to invest that money and then reshuffle the deck, if you will,' Markison said.
Lantheus is now the 21st largest life sciences company in Massachusetts, per Business Journal research. The company employed 808 people at the end of 2024, of which 783 were located in the U.S. In Massachusetts, Lantheus has facilities in North Billerica and Bedford.
The life sciences industry is experiencing tough public markets and reduced venture capital availability, leaving some biotechs struggling. That presents an opportunity for companies like Lantheus who are on the hunt for deals.
'I think when a source of funding is dried up momentarily, then we become a fairly attractive source. But we're going to also want something in return, and usually we're going to want some of their promising assets,' Markison said.
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