Lantheus Holdings, Inc. Q2 FY2025 earnings call

• Brian discussed the second quarter results being below expectations and the lowering of the financial outlook for the remainder of 2025. He focused on PYLARIFY's dynamics in the PSMA PET market, including renegotiations of partnerships and the impact of MUC-based reimbursement and competitor discounting. • Mentioned the FDA accepted the NDA for a new formulation of PYLARIFY, which will increase batch size and benefit patients and customers. • Highlighted acquisitions of Evergreen and Life Molecular, which bring complementary capabilities, growth drivers, and diversify revenue. • Neuraceq's expanded label approval and growth potential in the U.S. Alzheimer's disease PET imaging market. • Board authorized a new $400 million stock repurchase program. • Paul discussed PYLARIFY sales, market dynamics, actions taken to maintain leadership, and the commercialization of the new PSMA PET agent. • Bob provided details of the second quarter financials, including consolidated net revenue, gross profit margin, operating expenses, and updated guidance.

Radiopharmaceutical oncology (PYLARIFY) contributed $250.6 million in sales during the second quarter of 2025, down 8.3% year-over-year. U.S. volumes for PYLARIFY were up over 4% sequentially. Precision Diagnostics revenue was $115.8 million, up 3.3%. Sales of DEFINITY were $83.9 million, 7.5% higher year-over-year. TechneLite revenue was $25 million, down 11.4% due to prior year comp. Strategic partnerships and other revenue was $11.6 million, up 32.8% due to contributions from investigational product candidate MK-6240 and the newly acquired Evergreen CDMO business.

• Adjusted PYLARIFY revenue range to $940 million to $965 million. • Full year revenue expected to be in the range of $1.475 billion to $1.51 billion, down from prior range. • Adjusted EPS expected in the range of $5.50 to $5.70, down from prior guide of $6.60 and $6.70. • Included LMI's contribution, with Neuraceq expected to be in the range of $40 million to $45 million and $0.04 of EPS contribution for partial Q3 and full Q4 inclusion.

• Confluence of MUC-based reimbursement and aggressive discounting by F-18 competitors led to renegotiation of partnerships and walking away from certain volumes. • PYLARIFY concentrated in large institutions growing at a slower rate than the overall market. • Competitive price pressures and net price compression impacting PYLARIFY's revenue.

Q: Matt Taylor from Jefferies asked about achieving double-digit growth in 2026.

A: Brian and Bob responded that it's achievable through organic and inorganic growth, with factors like DEFINITY's run rate, LMI transaction, and launches of new products contributing.

Q: Anthony Petrone from Mizuho Americas asked about LMI's contribution and PYLARIFY's share losses.

A: Bob and Paul responded that LMI contributes $40 million to $45 million in revenue with $0.04 EPS accretion, and PYLARIFY is seeing signs of stabilization with low single-digit volume growth and continued net price decline.

Q: Richard Newitter from Truist Securities asked about timing of the new PYLARIFY formulation's commercialization and why it wasn't earlier.

A: Brian and Paul responded that they worked to get it right, with a March 2026 PDUFA date, and it will provide benefits like batch size and production efficiency.

Q: Yuan Zhi from B. Riley asked about the new formulation's impact on contracts.

A: Brian responded that it's an add-on and could trigger a 340B price reset.

Q: Lawrence Scott Solow from CJS Securities asked about contracted vs non-contracted business and share loss.

A: Brian and Paul responded that most business is under contract, and they walked away from discounting dynamics not in the long-term interest.

Q: Francis from TD Securities asked about positioning of the new PSMA imaging agent.

A: Paul responded that it will level the playing field and focus on clinical differentiation.

Q: Kemp Dolliver from Brookline Capital Markets asked about impact of ASP in 2027.

A: Brian responded that it's in line with strategy, with new formulation replacing old and improving gross margin.

Q: John Vandermosten from Zacks asked about market size expansion and replacement of existing PYLARIFY.

A: Brian responded that new formulation will replace existing and expand market.

Q: Tsan-Yu Hsieh from William Blair asked about Alzheimer's strategy.

A: Brian responded that blood-based biomarkers are a market expansion opportunity and their tracers are more sensitive.

Q: Yuan Zhi from B. Riley asked about Neuraceq's growth assumptions.

A: Bob and Paul responded that Neuraceq has double-digit growth, driven by market expansion and team integration.

Q: David Turkaly from Citizens asked about PYLARIFY's 2026 revenue.

A: Bob and Paul responded that assumptions of flattish or down revenue are reasonable given pricing dynamics.