Lantheus Holdings Inc ((LNTH)) has held its Q4 earnings call. Read on for the main highlights of the call.
Lantheus Holdings Inc. recently held its earnings call, revealing a generally positive sentiment despite some financial challenges. The company reported strong revenue growth, primarily driven by its key products, Pylarify and DEFINITY, and highlighted strategic acquisitions aimed at future expansion. However, increased operating expenses and a net loss for the quarter were noted as challenges. Nevertheless, Lantheus remains optimistic about its pipeline and strategic direction.
Record-Breaking Revenue and Growth
Lantheus achieved a remarkable $1.534 billion in revenue for the full year 2024, marking an 18.3% increase. A significant contributor to this growth was Pylarify, whose sales surpassed $1 billion, establishing it as the first-ever radio diagnostic blockbuster.
Strategic Acquisitions
The company announced the acquisitions of Life Molecular Imaging and Evergreen Theragnostics. These strategic moves are expected to enhance Lantheus’s radiopharmaceutical capabilities and drive sustained double-digit revenue growth starting in 2026.
Strong Performance of DEFINITY
DEFINITY, the leading ultrasound enhancing agent, reported fourth-quarter net sales of $86.2 million, reflecting a 17.9% year-over-year increase, underscoring its strong market performance.
CMS Policy Favorable for Radiopharmaceuticals
A new CMS payment policy provides separate payment for innovative radiopharmaceutical diagnostics, which benefits products like Pylarify, potentially boosting their market reach and profitability.
Future Pipeline Potential
Lantheus is optimistic about its pipeline, including promising projects like MK-6240 and NAV-4694 for Alzheimer’s diagnostics, with NDA filings expected in 2025 and 2026.
Decreased Strategic Partnerships and Other Revenue
Strategic partnerships and other revenue saw a significant decline of 66.2% for the fourth quarter, primarily due to the inclusion of a previous RELISTOR royalty milestone.
Operating Expense Increase
Operating expenses rose to 29.1% of net revenue, up 670 basis points from the previous year, driven mainly by increased R&D investments and acquisition-related expenses.
Net Loss for the Quarter
Lantheus reported a net loss of $11.8 million for the fourth quarter, attributed to substantial expenses associated with potential acquisitions.
Forward-Looking Guidance
For 2025, Lantheus anticipates a full-year net revenue range of $1.54 billion to $1.61 billion, reflecting growth of 1% to 5% over 2024. Pylarify is expected to achieve low to mid-single-digit growth, and DEFINITY is projected to grow at a similar rate despite headwinds. The company forecasts a gross profit margin similar to 2024’s 68% and anticipates fully diluted adjusted earnings per share between $7.00 and $7.20, an increase of 3.5% to 6.5%. Lantheus also plans to generate $550 million to $600 million in free cash flow, with potential for sustained double-digit revenue growth starting in 2026.
In conclusion, Lantheus Holdings Inc.’s earnings call highlighted a strong revenue performance driven by key products and strategic acquisitions, despite facing challenges such as increased expenses and a net loss. The company remains optimistic about its future pipeline and strategic direction, with promising growth forecasts for 2025 and beyond.