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Lantheus (LNTH)
NASDAQ:LNTH

Lantheus (LNTH) AI Stock Analysis

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Lantheus

(NASDAQ:LNTH)

Rating:69Neutral
Price Target:
$86.00
▲(5.46%Upside)
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
Acquisitions and Divestitures
Strong execution and improved margins expected following the completion of acquisitions and divestitures.
Radiopharmaceutical Portfolio
Confidence in the medium-to long-term potential of the company's emerging radiopharmaceutical pipeline.
Strategic Growth
Lantheus is making smart, deliberate strategic shifts to better capture growth by locking in contracts with their largest, high volume customers and expanding focus to smaller imaging centers.
Negative Factors
Competitive Pressure
PYLARIFY facing competitive pressure and its net sales down 0.5% year-over-year.
Guidance Downgrade
Guidance for PYLARIFY sales growth has been adjusted downward, impacting overall financial expectations.
Revenue Shortfall
Revenue came in below expectations, $257.7 million versus Street consensus of $265.1 million and our estimate of $262.8 million.

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

Lantheus Business Overview & Revenue Model

Company DescriptionLantheus (LNTH) is a healthcare company specializing in the development, manufacture, and commercialization of innovative diagnostic imaging agents and products. Operating primarily in the radiopharmaceutical sector, Lantheus provides essential tools for clinicians to accurately diagnose and manage diseases such as cancer and cardiovascular conditions. The company's core products include a range of diagnostic imaging agents used in positron emission tomography (PET) and single-photon emission computed tomography (SPECT) imaging.
How the Company Makes MoneyLantheus makes money by selling its diagnostic imaging agents and products to hospitals, clinics, and other healthcare providers. The company's revenue is primarily generated through the commercialization of its proprietary imaging agents, which are used to enhance the diagnostic capabilities of PET and SPECT imaging technologies. Lantheus also engages in strategic partnerships and collaborations with other pharmaceutical and biotechnology companies to expand its product offerings and reach in the market. Additionally, the company's revenue streams are supported by ongoing research and development efforts that lead to the introduction of new products and enhancements to existing ones, thereby sustaining and growing its market presence.

Lantheus Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -22.21%|
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 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
88
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
85
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
92
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.53B1.30B935.06M425.21M339.41M
Gross Profit
988.29M709.54M581.70M187.69M138.76M
EBIT
456.98M364.64M-13.44M-76.09M-4.20M
EBITDA
515.27M491.00M81.83M-25.00M22.69M
Net Income Common Stockholders
312.44M326.66M28.07M-71.28M-13.47M
Balance SheetCash, Cash Equivalents and Short-Term Investments
912.81M713.66M415.65M98.51M79.61M
Total Assets
1.98B1.65B1.32B863.78M869.82M
Total Debt
619.44M616.95M558.07M174.76M218.40M
Net Debt
-293.38M-96.71M142.41M76.25M138.79M
Total Liabilities
892.33M835.26M874.11M399.35M355.62M
Stockholders Equity
1.09B815.89M447.15M464.44M514.21M
Cash FlowFree Cash Flow
493.13M258.70M263.43M41.78M3.92M
Operating Cash Flow
544.75M305.26M281.78M53.92M16.40M
Investing Cash Flow
-226.01M5.94M-276.55M3.68M-4.91M
Financing Cash Flow
-118.54M-13.06M311.69M-39.33M-21.86M

Lantheus Technical Analysis

Technical Analysis Sentiment
Negative
Last Price81.55
Price Trends
50DMA
90.66
Negative
100DMA
91.98
Negative
200DMA
95.78
Negative
Market Momentum
MACD
-3.49
Negative
RSI
47.59
Neutral
STOCH
91.36
Negative
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 81.55 is above the 20-day moving average (MA) of 77.81, below the 50-day MA of 90.66, and below the 200-day MA of 95.78, indicating a neutral trend. The MACD of -3.49 indicates Negative momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 91.36 is Negative, 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 3 New Risks
1.
If we are not able to successfully integrate the businesses we acquire, or if we are unable to successfully secure necessary shareholder and regulatory approvals relating to pending acquisitions in a timely manner or at all, we may not be able to realize the benefits that we expect to result from the transactions. Additionally, the risks related to the acquired businesses, including the risk that we are unable to successfully integrate those businesses into our operations or are unable to realize the anticipated benefits that each acquisition is predicted to bring, could adversely affect our business, financial condition or results of operations. Q4, 2024
2.
We may not, or may take longer to, realize the expected benefits and opportunities related to, investments we have made to develop diagnostic product candidates to be used in diagnosing, staging and monitoring Alzheimer's disease. Q4, 2024
3.
Potential generic competitors as a result of patent and regulatory exclusivity expirations Q4, 2024

Lantheus Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RDRDY
77
Outperform
$12.84B19.3718.36%0.52%13.26%1.33%
74
Outperform
$12.33B42.5212.43%21.73%-19.24%
69
Neutral
$5.56B23.1424.11%12.53%-45.33%
63
Neutral
$3.61B-3.64%4.33%-4.85%-4290.31%
57
Neutral
$20.32B-18.98%3.38%-175.90%
54
Neutral
$5.24B3.27-45.39%2.80%16.77%-0.07%
53
Neutral
$9.93B-21.25%5.67%-6.88%-6809.78%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LNTH
Lantheus
81.55
2.27
2.86%
RDY
Dr Reddy's Laboratories
15.55
1.11
7.69%
VTRS
Viatris
8.71
-1.33
-13.25%
NBIX
Neurocrine
125.39
-9.31
-6.91%
PRGO
Perrigo Company
26.16
-0.03
-0.11%
TEVA
Teva Pharmaceutical
17.77
0.92
5.46%

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.