Lantheus (LNTH) AI Stock Analysis

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Lantheus

(NASDAQ:LNTH)

69Neutral

Lantheus exhibits strong financial performance with impressive growth and profitability metrics, but technical indicators show bearish trends and weak market momentum. The valuation is moderate, and while the company has strategic growth prospects, competitive pressures and decreased margins are concerns. The lowered full-year guidance further tempers the outlook.

Positive Factors

Portfolio Optimization

Significant upside potential is seen in Lantheus's Alzheimer's portfolio and key portfolio streamlining with the SPECT divestiture.

Strategic Partnerships

Lantheus continues to secure strategic partnerships and plans to broaden contracting efforts and expand product availability.

Negative Factors

Competitive Pressure

PYLARIFY facing competitive pressure and its net sales down 0.5% year-over-year.

Financial Performance

Revenue came in below expectations, $257.7 million versus Street consensus of $265.1 million and our estimate of $262.8 million.

Guidance Adjustment

Guidance for PYLARIFY sales growth has been adjusted downward, impacting overall financial expectations.

Lantheus (LNTH) vs. S&P 500 (SPY)

Market Cap

$5.62B

Dividend YieldN/A

Average Volume (3M)1.25M

Price to Earnings (P/E)23.1

Beta (1Y)0.48

Revenue Growth12.53%

EPS Growth-45.33%

CountryUS

Employees808

SectorHealthcare

Sector Strength41

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)1.53

Shares Outstanding69,185,840

10 Day Avg. Volume2,078,305

30 Day Avg. Volume1,247,281

Financial Highlights & Ratios

PEG Ratio-0.67

Price to Book (P/B)5.20

Price to Sales (P/S)0.00

P/FCF Ratio11.47

Enterprise Value/Market Cap0.95

Enterprise Value/Revenue0.92

Enterprise Value/Gross Profit5.37

Enterprise Value/Ebitda2.17

Forecast

1Y Price Target

$121.00

Price Target Upside48.94% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

Lantheus Business Overview & Revenue Model

Company DescriptionLantheus Holdings, Inc. (NASDAQ: LNTH) is a leading global healthcare company specializing in the development, manufacturing, and commercialization of innovative diagnostic and therapeutic products. The company operates primarily in the medical imaging and radiopharmaceutical sectors, offering a range of products used by healthcare professionals to diagnose and treat cardiovascular and oncological conditions. Lantheus is known for its flagship products such as DEFINITY, a contrast agent used in echocardiograms, and various radiopharmaceuticals used in PET and SPECT imaging.

How the Company Makes MoneyLantheus generates revenue primarily through the sale of its diagnostic and therapeutic imaging products. A significant portion of its income comes from the sales of DEFINITY, a widely used ultrasound contrast agent. Additionally, the company earns from its portfolio of radiopharmaceuticals, which includes products for PET and SPECT imaging procedures. Lantheus has established partnerships and distribution agreements which help in expanding the reach of its products to healthcare providers globally. Revenue is also supported by ongoing research and development efforts that lead to new product offerings and enhancements of existing products, ensuring a steady pipeline of innovative solutions in the medical imaging field.

Lantheus Financial Statement Overview

Summary

Lantheus demonstrates strong financial health with significant revenue growth, high profitability margins, low leverage, and excellent cash flow generation. These factors contribute to a robust financial performance within the pharmaceuticals industry.

Income Statement

Very Positive

Lantheus demonstrates strong revenue growth, with a 18.28% increase from 2023 to 2024. The gross profit margin for 2024 is healthy at 64.43%, indicating effective cost management and profitability. The net profit margin improved to 20.37% in 2024, showing enhanced profitability. EBIT and EBITDA margins are robust at 29.79% and 29.79%, respectively, reflecting operational efficiency.

Balance Sheet

Very Positive

The company maintains a solid financial position with a low debt-to-equity ratio of 0.001, indicating minimal leverage. The return on equity is impressive at 28.72%, reflecting strong profitability relative to shareholder investments. The equity ratio of 54.94% indicates a healthy balance between equity and assets, suggesting financial stability.

Cash Flow

Very Positive

Lantheus has shown significant improvement in its free cash flow, growing by 90.52% from 2023 to 2024. Operating cash flow to net income ratio is strong at 1.74, indicating efficient cash generation from operations. The free cash flow to net income ratio of 1.58 underscores effective cash management and the ability to fund operations and growth.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.53B	1.30B	935.06M	425.21M	339.41M
	Gross Profit
988.29M	709.54M	581.70M	187.69M	138.76M
	EBIT
456.98M	364.64M	-13.44M	-76.09M	-4.20M
	EBITDA
515.27M	491.00M	81.83M	-25.00M	22.69M
	Net Income Common Stockholders
312.44M	326.66M	28.07M	-71.28M	-13.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
912.81M	713.66M	415.65M	98.51M	79.61M
	Total Assets
1.98B	1.65B	1.32B	863.78M	869.82M
	Total Debt
619.44M	616.95M	558.07M	174.76M	218.40M
	Net Debt
-293.38M	-96.71M	142.41M	76.25M	138.79M
	Total Liabilities
892.33M	835.26M	874.11M	399.35M	355.62M
	Stockholders Equity
1.09B	815.89M	447.15M	464.44M	514.21M
Cash Flow		Free Cash Flow
493.13M	258.70M	263.43M	41.78M	3.92M
	Operating Cash Flow
544.75M	305.26M	281.78M	53.92M	16.40M
	Investing Cash Flow
-226.01M	5.94M	-276.55M	3.68M	-4.91M
	Financing Cash Flow
-118.54M	-13.06M	311.69M	-39.33M	-21.86M

Lantheus Technical Analysis

Technical Analysis Sentiment

Negative

Last Price81.24

Price Trends

50DMA

97.63

Negative

100DMA

94.13

Negative

200DMA

97.23

Negative

Market Momentum

MACD

-5.50

Positive

RSI

32.81

Neutral

STOCH

9.20

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNTH, the sentiment is Negative. The current price of 81.24 is below the 20-day moving average (MA) of 94.31, below the 50-day MA of 97.63, and below the 200-day MA of 97.23, indicating a bearish trend. The MACD of -5.50 indicates Positive momentum. The RSI at 32.81 is Neutral, neither overbought nor oversold. The STOCH value of 9.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LNTH.

Lantheus Risk Analysis

Lantheus disclosed 50 risk factors in its most recent earnings report. Lantheus reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Lantheus Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	77 Outperform	$11.99B	17.98	18.36%	0.56%	13.26%	1.33%
NBIX	74 Outperform	$11.98B	41.04	12.43%	―	21.73%	-19.24%
LNTH	69 Neutral	$5.62B	23.05	24.11%	―	12.53%	-45.33%
PRGO	63 Neutral	$3.72B	―	-3.64%	4.13%	-4.85%	-4290.31%
TEVA	59 Neutral	$19.50B	―	-18.98%	―	3.38%	-175.90%
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.82%	16.45%	-0.47%
VTRS	51 Neutral	$10.38B	―	-21.25%	5.43%	-6.88%	-6809.78%

* Healthcare Sector Average

Performance Comparison

LNTH

Lantheus

81.24

-1.63

-1.97%

RDY

Dr Reddy's Laboratories

14.44

0.77

5.63%

VTRS

Viatris

8.84

-1.76

-16.60%

NBIX

Neurocrine

121.02

-20.63

-14.56%

PRGO

Perrigo Company

27.05

-1.35

-4.75%

TEVA

Teva Pharmaceutical

16.94

0.13

0.77%

Lantheus Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: -22.51%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook, with strategic acquisitions and pipeline advancements highlighting potential for future growth. However, competitive pressures on PYLARIFY, flat revenue growth, and decreased profit margins weighed on the overall sentiment. The company also lowered its full-year guidance, reflecting challenges in the current market environment.

Q1-2025 Updates

Positive Updates

Strategic Acquisitions and Divestitures

Announced the acquisition of Evergreen Theragnostics and Life Molecular Imaging, aimed at enhancing radiopharmaceutical capabilities and growth. Also announced the divestment of the SPECT business to SHINE Technologies.

Strong Product Performance

PYLARIFY sales for the first quarter were $258 million, despite a low-single-digit decline in net price. DEFINITY achieved approximately $79 million in sales, even with the return of competitive supply to the U.S. market.

Positive Pipeline Developments

MK-6240, a next-generation tau imaging agent, met its primary endpoints in two pivotal studies. The company plans to submit a new drug application to the FDA in the third quarter of 2025.

Financial Stability

Operating cash flow for the first quarter was $107.6 million, with a strong liquidity position of $938.5 million in cash and cash equivalents.

Negative Updates

PYLARIFY Competitive Pressures

Experienced competitive disruption among smaller, non-contracted sites due to changes in Medicare reimbursement, impacting growth.

Flat Revenue Growth

Consolidated net revenue for the first quarter was $372.8 million, an increase of only 0.8%. PYLARIFY contributed $257.7 million of sales, flat with the prior year.

Decreased Profit Margins

Gross profit margin for the first quarter was 67%, a decrease of 180 basis points, attributed to strategic partnership contracting initiatives and supply issues.

Lowered Full-Year Guidance

Updated full-year revenue guidance to $1.55 billion to $1.585 billion, with adjusted EPS guidance reduced to $6.60 to $6.70 from the prior guide of $7 to $7.20.

Company Guidance

During the Lantheus First Quarter 2025 Conference Call, the company provided guidance on several key metrics. They announced plans to divest their SPECT business to SHINE Technologies and highlighted two acquisitions: Evergreen Theragnostics and Life Molecular Imaging, which are expected to drive revenue growth and diversify their portfolio. The acquisitions are anticipated to enhance their radiopharmaceutical leadership and add capabilities, including infrastructure for manufacturing radiotherapeutics. The company projects the U.S. Alzheimer’s disease radiodiagnostics market could grow to more than $1.5 billion by the end of the decade and $2.5 billion by the mid-2030s. For PYLARIFY, sales for the quarter were $258 million with plans to maintain market leadership despite competitive pressures. The fiscal year 2025 guidance for PYLARIFY was updated to flat-to-low single-digit percent growth, with expectations for total net revenue to be between $1.55 billion and $1.585 billion. Adjusted EPS is expected to range from $6.60 to $6.70, down from the previous guidance of $7 to $7.20, due to strategic investments and acquisitions. The company expressed confidence in sustainable long-term growth, driven by their diversified pipeline and strategic focus.

Lantheus Corporate Events

M&A TransactionsBusiness Operations and Strategy

Lantheus Completes Acquisition of Evergreen Theragnostics

Positive

Apr 1, 2025

On April 1, 2025, Lantheus Holdings, Inc. completed its acquisition of Evergreen Theragnostics, Inc., a move that enhances Lantheus’ capabilities across the radiopharmaceutical value chain. The acquisition, initially announced on January 28, 2025, includes Evergreen’s OCTEVY, a PET diagnostic imaging agent for neuroendocrine tumors, and a portfolio of theranostic pairs, as well as Evergreen’s radioligand therapy manufacturing infrastructure. This strategic acquisition positions Lantheus to better meet market demands and drive innovation, with potential milestone payments up to $727.5 million contingent on future achievements.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.