Lantheus (LNTH) TD Cowen 46th Annual Health Care Conference summary

Strategic focus and portfolio evolution

• Announced a strategic shift to prioritize diagnostic assets over therapeutics, citing portfolio breadth after recent M&A and the maturity of diagnostic assets as key drivers.

• Maintains openness to select therapeutic opportunities, especially with the recent conditional FDA approval of PNT2003, which aligns with core market strengths.

• Recent acquisitions (LMI and Evergreen) were targeted for near-term revenue and pipeline depth, with OCTEVY and Neuraceq highlighted as complementary additions.

• Decision to focus on diagnostics is supported by lower development costs, faster timelines, and strong historical expertise in radiopharmaceutical diagnostics.

Product launches and operational milestones

• Preparing for the launch of a new PYLARIFY formulation, with key milestones including FDA approval (PDUFA date imminent), pass-through status, and HCPCS code applications.

• Manufacturing transition to the new formulation will be executed regionally in Q4, with full adoption and revenue ramp expected from January 2027.

• The new formulation is expected to deliver up to 50% more doses per batch, addressing customer demand and competitive gaps.

• PNT2003 commercialization is gated by Hatch-Waxman litigation expiration (expected June), with coding, coverage, and potential at-risk launch considered.

Financial guidance and assumptions

• 2025 revenue guidance rebased to $1.4–$1.45 billion after accounting for SPECT divestiture and milestone receipts.

• PYLARIFY guidance reflects 8–10% decline, factoring in competitive launches, pricing stability, and no 340B price reset.

• Neuraceq net revenue expected at $130–$140 million, with DEFINITY projected for low to mid-single digit growth.

• OpEx investments in sales, marketing, and R&D are planned at 12–12.5% and 10–11% of revenue, respectively, with G&A held flat.

• Share buybacks reduced outstanding shares by 7% year-over-year, with $200 million authorization remaining.