Lantheus investors likely disappointed with CMS proposal, says William Blair

William Blair says Lantheus (LNTH) investors will likely be disappointed by the Centers for Medicare and Medicaid Services continuing mean unit cost-based reimbursement. However, the agency left the average selling payment path open, the analyst tells investors in a research note. Blair says CMS last night proposed new rules pertaining to reimbursement systems for diagnostic radiopharmaceuticals. The agency proposed to continue reimbursing high-cost diagnostic radiopharmaceuticals at mean unit cost rather than average selling price, but continues to encourage drug sponsors to submit selling price data in the event that the reimbursement method changes to price in the future, the firm points out. It believes Lantheus shareholders will be disappointed by CMS’s proposal, especially given that the company has conveyed the potential for the agency to transition to selling price pricing. Blair expects the shares to trade down today and keeps a Market Perform rating on the name. Lantheus in premarket trading is down 3% to $79.00.