Latest news with #Markison
Yahoo
09-05-2025
- Business
- Yahoo
LNTH Q1 Earnings Call: Lantheus Lowers Outlook Amid Product Shifts and Divestitures
Radiopharmaceutical company Lantheus Holdings (NASDAQ:LNTH) missed Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $372.8 million. The company's full-year revenue guidance of $1.57 billion at the midpoint came in 1.8% below analysts' estimates. Its non-GAAP profit of $1.53 per share was 7.5% below analysts' consensus estimates. Is now the time to buy LNTH? Find out in our full research report (it's free). Revenue: $372.8 million vs analyst estimates of $378.8 million (flat year on year, 1.6% miss) Adjusted EPS: $1.53 vs analyst expectations of $1.65 (7.5% miss) Adjusted EBITDA: $149.6 million vs analyst estimates of $172.9 million (40.1% margin, 13.4% miss) The company dropped its revenue guidance for the full year to $1.57 billion at the midpoint from $1.58 billion, a 0.6% decrease Management lowered its full-year Adjusted EPS guidance to $6.65 at the midpoint, a 6.3% decrease Operating Margin: 27.4%, down from 28.8% in the same quarter last year Free Cash Flow Margin: 26.5%, down from 32.2% in the same quarter last year Market Capitalization: $5.57 billion Lantheus Holdings' first quarter results were driven by a combination of steady performance from its core imaging agents and significant business transformation initiatives. Management attributed the quarter's results to the impact of contracting strategies in its radiopharmaceutical segment, ongoing competitive dynamics in its PYLARIFY product, and the divestiture of its SPECT business. CEO Brian Markison emphasized, 'We are laying the foundation for the next chapter of our business,' highlighting the importance of recent acquisitions and a focus on PET radiodiagnostics and radiotherapeutics. Looking ahead, Lantheus' downward adjustment of full-year guidance was shaped by a more cautious view on PYLARIFY's growth trajectory and anticipated integration costs from new acquisitions. Management remains focused on streamlining its portfolio, expanding its Alzheimer's disease diagnostics via the Life Molecular Imaging acquisition, and investing in early- and late-stage pipeline assets. Markison noted that these moves are designed to 'diversify our revenue streams and unlock additional value,' though leadership acknowledged ongoing headwinds in reimbursement and market competition. Lantheus' leadership pointed to ongoing portfolio realignment and competitive pressure as key influences on first quarter outcomes. The company's business update centered around the strategic sale of its SPECT business, acquisitions targeting growth in PET imaging, and the positioning of its pipeline for future expansion. Portfolio transformation underway: Management is actively shifting away from legacy SPECT imaging, opting to divest this segment to SHINE Technologies. This streamlining move is intended to focus the company on higher-margin PET diagnostics and radiotherapeutics. Acquisition-driven pipeline expansion: The completed Evergreen Theragnostics acquisition and pending Life Molecular Imaging (LMI) deal are expected to add commercial products and expand the pipeline, particularly in neuroendocrine tumor imaging and Alzheimer's diagnostics. Evergreen brings manufacturing capabilities and a pipeline that includes OCTEVY, while LMI adds NEURACEQ, a PET imaging agent for Alzheimer's disease. PYLARIFY market dynamics: PYLARIFY, Lantheus' PSMA PET imaging agent, saw continued volume growth offset by a low-single-digit decline in net price. Management cited increased competitive disruption among smaller, non-contracted imaging centers due to reimbursement changes, but believes expanded contracting and product availability will help regain momentum. Alzheimer's diagnostics opportunity: The company anticipates significant growth in the Alzheimer's PET imaging market, citing over 100 therapeutic candidates in development. Management expects its combined Alzheimer's diagnostics platform to be positioned for leadership as the market expands. Margin pressures and cost allocation: Operating margins declined in part due to increased R&D spend supporting a broader pipeline and non-recurring transaction expenses. The company expects divesting lower-margin businesses and integrating acquisitions to support future margin improvement. Management's outlook for the remainder of the year is shaped by the integration of new acquisitions, ongoing reimbursement headwinds in core imaging agents, and anticipated growth in the Alzheimer's diagnostics market. Integration of new acquisitions: Lantheus expects the addition of Evergreen and LMI to diversify its revenue base and provide new growth avenues, though near-term earnings will be diluted by integration costs and increased R&D investment. Reimbursement environment and competition: Ongoing changes in Medicare reimbursement and heightened competition, especially for PYLARIFY, are expected to impact near-term growth and pricing power. Management is focused on expanding contracting efforts to smaller imaging centers to mitigate these effects. Alzheimer's diagnostics and pipeline launches: The company believes growth in Alzheimer's disease PET imaging will accelerate with the launch of new diagnostic agents and continued development of therapeutic partnerships, positioning Lantheus to benefit from increasing demand in this area. Anthony Petrone (Mizuho Financial Group): Asked about PYLARIFY's competitive dynamics and the rationale for divesting the SPECT business; management described short-term disruptions among smaller centers and emphasized a focus on growth platforms. Roanna Ruiz (Leerink Partners): Queried about drivers for the narrowed guidance range and how resources from the SPECT sale would be redeployed; management cited more cautious PYLARIFY assumptions and a focus on PET diagnostics and radiotherapeutics. Richard Newitter (Truist Securities): Sought clarity on expected dilution from acquisitions and whether double-digit revenue growth in 2026 remains likely; management reiterated low-single-digit dilution and stated that double-digit growth is still anticipated with full-year contributions from acquisitions. Matt Taylor (Jefferies): Asked how the acquisitions would affect growth rates in 2026 and beyond; management pointed to launches of OCTEVY, PNT2003, and Alzheimer's agents as potential drivers for sustained double-digit growth. Paul Choi (Goldman Sachs): Inquired about PYLARIFY pricing trends and the outlook for Alzheimer's PET scan market growth post-acquisition; leadership highlighted ongoing payer discussions and robust growth in Alzheimer's imaging claims. In future quarters, the StockStory team will watch (1) the pace and success of Evergreen and Life Molecular Imaging integration, (2) stabilization and potential recovery in PYLARIFY's pricing and volume trends as new contracting strategies are implemented, and (3) early signs of expansion in the Alzheimer's PET imaging segment following NEURACEQ's addition. The timing of key regulatory filings and product launches will also be critical markers for the company's evolving growth trajectory. Lantheus currently trades at a forward P/E ratio of 11.2×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. 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Business Journals
21-04-2025
- Business
- Business Journals
In tough environment, Lantheus has cash and plans to use it
By submitting your information you are agreeing to our Privacy Policy and User Agreement . 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. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events 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. Don't miss out on Boston-area life science news. Subscribe to the Morning Edition or Afternoon Edition for free.
