Radiopharmaceutical company Lantheus Holdings (NASDAQ: LNTH) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 1.4% year on year to $384 million. The company’s full-year revenue guidance of $1.5 billion at the midpoint came in 1.1% above analysts’ estimates. Its non-GAAP profit of $1.27 per share was in line with analysts’ consensus estimates.
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Lantheus (LNTH) Q3 CY2025 Highlights:
- Revenue: $384 million vs analyst estimates of $365 million (1.4% year-on-year growth, 5.2% beat)
- Adjusted EPS: $1.27 vs analyst estimates of $1.27 (in line)
- Adjusted EBITDA: $125 million vs analyst estimates of $113.7 million (32.5% margin, 9.9% beat)
- The company slightly lifted its revenue guidance for the full year to $1.5 billion at the midpoint from $1.49 billion
- Management reiterated its full-year Adjusted EPS guidance of $5.58 at the midpoint
- Operating Margin: 11.4%, down from 35.3% in the same quarter last year
- Market Capitalization: $3.65 billion
StockStory’s Take
Lantheus’ third quarter was marked by a negative market reaction, as investors responded to lower operating margins and significant leadership changes despite revenue exceeding Wall Street’s expectations. Management pointed to pricing stabilization in the prostate cancer imaging franchise and continued growth in its DEFINITY ultrasound agent as key drivers. CEO Brian Markison highlighted, “Pricing stabilization across our accounts that began early in the third quarter has continued,” attributing the performance to disciplined commercial execution and ongoing customer education. However, higher operating expenses—including integration costs from recent acquisitions—pressured profitability.
Looking ahead, Lantheus’ guidance is underpinned by expectations of stable, low single-digit volume growth for its PSMA PET products, offset by ongoing price compression and the impact of 340B pricing resets. Management emphasized the anticipated launch of a new F-18 PSMA PET formulation and expanded access to Alzheimer’s imaging agents as future growth catalysts. As CEO Markison explained, “We are preparing for the expected launch of our new F-18 PSMA PET formulation, which optimizes the manufacturing process to potentially increase batch size by approximately 50%.” The company is also focusing on integrating recent acquisitions and navigating a competitive and evolving regulatory landscape.
Key Insights from Management’s Remarks
Management attributed the latest quarter’s results to pricing discipline in its core prostate cancer franchise, operational integration of recent acquisitions, and early signs of stabilization in key end markets.
- Leadership transition underway: CEO Brian Markison announced his upcoming retirement, with Mary Anne Heino, current Board Chairperson and former CEO, stepping in as interim CEO while a search for a permanent successor is conducted. President Paul Blanchfield is also departing, and Amanda Morgan returns as Chief Commercial Officer.
- PYLARIFY pricing and volume trends: The company reported ongoing pricing stabilization for PYLARIFY, its prostate cancer imaging agent, following earlier price concessions. Volume growth in smaller accounts offset large institutions diversifying to competing agents, and management noted some sites returning after trialing alternatives.
- Operational integration of acquisitions: Strategic acquisitions—including Life Molecular Imaging and Evergreen Theragnostics—were highlighted as expanding Lantheus’ radiopharmaceutical capabilities and pipeline. Integration costs and new margin profiles from these deals contributed to elevated operating expenses and lower margins in the quarter.
- Growth in neurology franchise: Neuraceq, the company’s amyloid PET imaging agent for Alzheimer’s disease, showed strong growth, with new production and distribution sites expanding geographic reach. Management cited rising demand from expanded PET imaging guidelines and the integration of Life Molecular Imaging’s commercial team as growth drivers.
- Investments in R&D and pipeline: Lantheus continued investing in a diversified pipeline, advancing new diagnostic and therapeutic agents in oncology and neurology. Near-term regulatory milestones include the expected approval of an F-18 PSMA PET formulation and MK-6240, a tau imaging agent for Alzheimer’s, both expected to support future revenue streams.
Drivers of Future Performance
Management expects future performance to be shaped by new product launches, continued pricing pressures, and strategic integration of recent acquisitions.
- New product pipeline launches: The anticipated launch of the F-18 PSMA PET formulation in 2026 and expanded access to Neuraceq and MK-6240 are expected to drive incremental revenue, with management focusing on reimbursement strategies and scaling manufacturing.
- Ongoing price compression risks: Lantheus expects continued price pressure in its prostate cancer imaging business, particularly from 340B pricing resets and increased competition. Management is targeting targeted commercial strategies to offset these headwinds and preserve franchise value.
- Integration and operational execution: The successful integration of recent acquisitions and the ability to contain costs from elevated operating expenses, including R&D investments, will be critical in maintaining profitability and supporting long-term growth.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of adoption and reimbursement for the new F-18 PSMA PET formulation and Alzheimer’s imaging agents, (2) the stability of PYLARIFY pricing and volume in a competitive market, and (3) the successful integration of recent acquisitions and management transitions. Progress on regulatory milestones and margin stabilization will be additional key signposts for tracking execution.
Lantheus currently trades at $54.76, down from $57.23 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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