Lantheus Holdings, Inc. Q3 FY2025 earnings call

Leadership Transition - Brian Markison will retire from Lantheus at the end of 2025, transitioning to an advisory role. Mary Anne Heino becomes Executive Chairperson and interim CEO. Paul Blanchfield is leaving Lantheus, and Amanda Morgan will return from leave as Chief Commercial Officer. ### Business Performance - Executed strategic transactions like acquisitions of Life Molecular Imaging, Evergreen Theragnostics, and Meilleur Technologies, and key licensing agreements. Focus on PYLARIFY commercial execution, DEFINITY's consistent growth, and potential in the neurology franchise with Neuraceq and MK-6240. ### Acquisitions - Integration of recent acquisitions strengthens operational and commercial abilities, expanding patient impact.

Consolidated net revenue for the third quarter was $384 million, an increase of 1.4%. Radiopharmaceutical Oncology (PYLARIFY) contributed $240.6 million of sales, down 7.4%. U.S. volumes were up 3.3% year-over-year and down slightly sequentially due to seasonality. Precision Diagnostic revenue was $129.7 million, up 25%. Highlights include sales of DEFINITY at $81.8 million, 6.3% higher, TechneLite revenue of $21.1 million, up 3.2%, and Neuraceq contributed $20.4 million. Strategic partnerships and other revenue was $13.7 million, down 10.1%, driven mainly by MK-6240 at $6 million of revenue, down 39.9% due to timing of milestones received in the prior year quarter not repeated.

Revenue - Narrowed full year 2025 revenue to a range of $1.49 billion to $1.51 billion from the prior range of $1.475 billion to $1.51 billion. ### Adjusted EPS - Narrowed adjusted EPS to a range of $5.50 to $5.65 versus the prior guide of $5.50 to $5.70. ### Product Approval - Preparing for potential approval of new F-18 PSMA PET formulation in 2026, expecting 3 years of transitional pass-through payment status.

Market Competition - Risks from other PSMA imaging products and agents in development. ### Regulatory/Reimbursement - Uncertainties with Medicare hospital outpatient rule changes. ### Integration - Risks from acquisitions and management transitions.

Q: Roanna Ruiz asked about strategies getting traction for PYLARIFY and Neuraceq and how they could continue into 2026.

A: Brian Markison said PYLARIFY is seeing stabilization in the account base and continued volume growth, and Neuraceq's growth is about expansion and availability. Robert Marshall added they will monitor the market closely but won't comment on 2026 guidance.

Q: Richard Newitter asked about major resets in 2026 and directional guidance relative to consensus.

A: Brian Markison said they're not commenting on 2026 guidance but noted stabilization of account base and continued volume growth for PYLARIFY.

Q: Matt Taylor asked about management changes, why now, and what's being looked for in a new CEO.

A: Brian Markison said Paul Blanchfield is going to a great opportunity, and his retirement is personal. Mary Anne Heino is an expert for interim leadership, and the CEO search is comprehensive with the Lead Independent Director.

Q: Yuan Zhi asked about Gozellix taking market shares from high-volume customers in the PSMA market.

A: Brian Markison said they're not seeing much impact from Gozellix on cyclotron-produced products, with smaller accounts growing in line with the market.

Q: Pete Lucas asked about the competitive landscape in the Alzheimer's imaging market and MK-6240's position.

A: Brian Markison said MK-6240 is a second-generation tau agent with superiority in studies, and tau's role is becoming more important in Alzheimer's diagnosis.

Q: Tara Bancroft asked about pricing stabilization factors and if the market will remain a 3-player market.

A: Brian Markison said the market stabilization is healthy, customers are making right decisions, and their team is driving growth. He expects continued growth from the PYLARIFY franchise.

Q: Justin Walsh asked about potential dynamics with other clinically differentiated products in the PSMA market and maintaining edge.

A: Brian Markison said they're monitoring a copper 64-based agent but are confident in their sensitivity and specificity. Robert Marshall added the market is a growing opportunity.

Q: Brian Kemp Dolliver asked about the Medicare hospital outpatient rule and transition to ASP.

A: Brian Markison said they're lobbying CMS, expecting potential change to ASP in 2027 but not much in 2026.

Q: Yuan Zhi asked for additional color on Neuraceq's growth trajectory and market share plan.

A: Brian Markison said Neuraceq is seeing growth, with the team from Life Molecular Imaging integrating seamlessly. Robert Marshall added expectation of continued growth from expanded geographic presence and bolstered sales team.