LNTH - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen. Welcome to the Lantheus Holdings Third Quarter 2018 Earnings Conference Call. This is your operator for today’s call. Please note that all lines have been placed on mute to prevent any background noise. This call is being recorded for replay purposes. will audio the be hours company’s of call the Investors in after of XX the of for section website and replay webcast available will the completion days. A archived be approximately X I to host would of Relations for over Communications. Director your and Murphy, now Corporate turn Meara call to Investor like the today,

Meara Murphy

you call. conference and quarter third earnings good Thank afternoon. Holdings Welcome to Lantheus

this Treasurer, and afternoon, with Mary today issued Anne and Heino Bob is Marshall. reporting CFO our the under me release, Earlier Joining press results. X-K CEO, and we filed a third which Exchange our and also quarter our Form President was Commission Securities

find at can of release section Investors our lantheus.com. You website in the the

comments over results Before forward-looking Please results our the to call statements With we measures during filings will I risks we refer expectations obligation uncertainties. measures get these differ include I of Mary website. that, detailed may most Reconciliation due included Mary comparable like to actual to call is of and started, indicated will the future Anne. will measures. non-GAAP of note discussions even certain statements financial Anne? this our this Please statements. found to within our uncertainties. during include on and the for these risks financial turn release materially. would by Actual discussion to directly change SEC Also, a GAAP if or the from that materially to forward-looking that those call variety update forward-looking these no a you assume remind earnings

Mary Anne Heino

broader DEFINITY profitability our pipeline We driving opportunities EBITDA in franchise, microbubble exceeded everyone. for focused pursuing and investing sales and revenue our guidance afternoon and our objectives. QX both strategy growth good fits growth our forward and QX product remain was growing for double-digit by and of We quarter Meara each of corporate of driven in a us. you, external our on strong Thank TechneLite. adjusted that

to will the our sustain call I On value the today, microbubble efforts DEFINITY to share insight of franchise. into secure and our important and

the QX update Marshall who Chief our on will to First, recently numbers, provide I reviews Financial over pipeline joined as Bob? our I our After Officer. well Bob as and the will turn strategic as product reference nuclear other updates initiatives. Bob call

Bob Marshall

Lantheus. you, Mary here to am and I to good am forward and everyone. looking with afternoon be Thank Anne I an exciting pleased future

basis. partner, of prior for increase third Let an and me million, increase numbers. Revenue year $XX.X million totaled opportunistic international similar at $XX.X or move on to XX% XX.X% quarter an post DEFINITY quarter. $XX.X over XX.X% sale a the basis on constant TechneLite up the the an of XX.X% and basis. during generators revenue up to continued supported of on by a currency was manufacture the to solid growth the of Sales an million, ANSTO,

third stemming U.S. to the sales NTP supply shutdown quarter. through extended from the offset million than that our the more and During in shortage these of $X.X TechneLite quarter, the effect business amounted

relationships impact our two Moly limit leverage supply to with XX of to suppliers able been the our to have NTP also We customers. existing from other our lost of

revenue driven the decreased $X.X sales reentry May, by last revenue million by to $XXX,XXX within competitor’s an to on development prior rebates. basis support in increase development research severance last of the profit increase despite and X.X% to or was Operating the and by revenue fees Gross the excluded, that expenses year. marketing points points to XX.X% of margin expenditures recent Turning and same period over manufacturing increase XX.X% $X.X same third activities XX revenue sales Other higher This rises higher were year. for period over favorable When and XX.X%, new offset year mix. customer and lower declined Xenon, year. our basis product recruiting only now executive a net product in costs both flat the XX or primarily result expenses. is the prior of offset administrative at are of was period by and driven quarter favorable G&A XX.X%. category by the of product million period for to same quarter investments $XX.X in Operating versus profit XX.X% million,

Please dispositions, of non-cash million. reorganization $X.X certain year. to presentation adjusted adjusted excludes expense with incentive Net flat increased note manufacturing programs, compensation and new interest that EBITDA asset other expenses those related the and costs. XX.X% EBITDA Additionally, to to expenses, million, $XX.X including stock our and amounted prior

share XX.X%. tax million X.X%, rate both the increase were tax quarter was available current quarter and earnings over X.X%, Please $X.X in cash effective Therefore, by year. per the GAAP an of of our of net an be or the liability last offset for note third was diluted the $X.XX, continues majority NOLs. to same quarter increase income Our

which $XX.X continued Third million reduce strong our quarter short-term expenditures in XX.X% risk. was totaled cash year. strategic capabilities manufacturing optimization own and investments and define our This XXXX. $X drive cash brought over of million, cash repaid strengthening flow operating in operating $XXX,XXX cash the equivalents performance outstanding our an to Capital supply expenditures, mainly QX capital cost in of capital quarter. the as were deployable to million $XX.X has cash compared less to same We we and our flow million totaled approximately $XXX.X position. period Free flow million debt due cash prior as flow, to $XX.X increase balance

leverage Our now EBITDA. ratio X.Xx adjusted is net

guidance updated quarter. full for our implied to fourth year now the and Turning

a revenue million the to range revenue of million This quarter. to be $XXX full $XX implies in to year for to expect fourth million. continue $XX range $XXX million approximately We of a

full quarter. in NTP faced supply recent guidance the of having the said assumes on to fourth may Moly ANSTO will some supply quarter. resume quarter, of slow communication, XX indicated not While the in opportunistic level sales does those throughout also on that significantly has depend they fourth this it that in That

profit relative reduce margin the for recent to gross do revenue Our quarter fourth more trends. assumptions

operating expect we marketing due expenses. higher be and investments product activities, expenses certain the slightly development Additionally, quarter to G&A planned sales and in fourth to

are and adjusted the a year-to-date, and our However, to Adjusted in for respectively. $XX $XX expected $XX to EBITDA full performance expected $XX year we given Previously, be quarters, million in to million raising million for a EBITDA year EBITDA range of guidance. adjusted million the we be million range our strong of is to now $XX had million. full to $XX fourth

the company like per would will EBITDA adjusted to we the anticipated We over call Mary I note results now the provide when evolution and transition public Anne. guidance. Mary guidance earnings providing back this Anne? a to entity turn maturity from company believe as growth the I’ll its that trajectory Lastly, of and of reflects share to profitability. XXXX

Mary Anne Heino

you, will updates Thank programs. on and some I now Bob. performance provide our business strategic

drive to ultrasound growth our DEFINITY. continue agent, with market-leading contrast We double-digit

secure underway marketing will the the suboptimal sales, drive a the market, growth with benefits expand and to of new growth. currently DEFINITY DEFINITY. our strategic have emphasize this, in education by We profile, activity a for echocardiography We include use and underlying in addition usage will modified Our our of drive formulation enhanced investments efforts continue These number believe of appropriate microbubble to new estate. an growth, the continued to initiatives indication in and a applications these be complemented growth expand franchise sustainable believe revenue echos. of We revenue product to to engines geographies. patent contrast new

have two me Let patent our March share Our property. greater now United XXXX. composition Orange States, key June Book-listed patents: on of patent DEFINITY’s until matter XXXX intellectual and valid clarity In valid of use through we method the

candidate approval candidate received notice manufacturing up in accept be challenge also while XX Hatch-Waxman his that Under of us would invalid. ANDA Hatch-Waxman ANDA with FDA for using may notified DEFINITY those we ANDA the have either an Orange FDA not XXXX. for Book includes portfolio we delayed that listed patents or certifying applicant the XXXX, must through To-date, patent then XXXX, not application, applicant does notice a be dated our our candidate. Act, process. applicant commercialize litigated patents is to applicant and patents applicant’s we to an the infringe to the generic claiming any be Should an give generic generic court. Our dispute the months and

precluded Accordingly, we, longer depending if how stay from November until So XX be example, in calculation. the to entry patent entering we remain resolved. the ANDA our being and in received the May in a ANDA on also the microbubble and way roll by same by of receive forward of continue that is To XXXX is applicant market full future least notice possibly at the the XXXX would applied, applicant that in else the confident all future, the an extent notice franchise. would date months same, and dispute DEFINITY’s invest we

Having leaving we successfully the the the I patient let Protocol to am in each the have to contraction. of the fraction with and of to ventricular enrolled measurement as announce LVEF with or clinical management those is our investments. you an Assessment ventricular I or percentage me already SPA Ejection the that left like heart agreed Now, program. ejection measures blood pleased update would on critical important decisions some speak DEFINITY patient it left of FDA, first Special on function for fraction certain program.

U.S. well-controlled We magnetic accuracy an addressable We resonance complete cardiac prove be could powered standard include XX approximately LVEF at indication imaging. in enhanced Benefit X X studies The for will studies LVEF in the patients. un-enhanced expand superiority two truth these with substantially echocardiography. contrast-enhanced measurement will sites is DEFINITY now The and studies echocardiography. market will and conducted to XXX believe versus

As DEFINITY expansion. will well we from that believe benefit leader, positioned to be this the market

a utility already could will in the We we available currently Orange Another providing modified on offering XXXX our formulation modified were for upon granted in eligible the the shared additional this a be of FDA, which approval. estimate and extends we that Book require FDA our This for Last this component of that, microbubble formulation not matter XXXX. by the does under if patent this approved formulation composition commercially franchise value by the clinical listing alternative is quarter, of refrigeration, through of development. DEFINITY formulation of of clinicians that greater settings. allowing choice formulation extends strategy become December formulation,

physical formulation be microbubbles kits applications. and inclusion Additionally, better characteristics, suited modified requiring indications this other may also in for given for its

signed microbubble an development example underway. program new continues of with DEFINITY, have already geographies include In China two as to our for fact, term are our recently opportunity programs sheets efforts. represent an that Entering we that those in their

is process third-party months, completed in working to data DEFINITY and research a import clinical FDA. confirmatory license the Our After currently with that organization the submit read from will partner drug this coming China partner the to China is our trials. analyze the

assumptions update approach we As our our market partner work we opportunity. will and to of and addressable the commercialization, with refine

previously, and is on be as sterile estimate commercial campus to well capabilities well Finally, vial we able That on early products. as program to DEFINITY product our shared a have build underway program as XXXX. to produce other manufacture we’ll by schedule, we

assets the let’s medicine our nuclear Now pipeline. in discuss

called coronary of Flurpiridaz will GE coronary half MPI patients with as of PET PET XX study with payments, the second follow-up single-digit XXXX. disease the the the AURORA of with coronary sales or to June collaboration XX, sales future The is imaging truth open-label, F primary and in on The angiography myocardial schedule double-digit enroll last multi-center license approximately Phase artery XXXX with standard. perfusion the royalties on is for specificity agreement, U.S. Healthcare patient and second The occur and for for study, first The the royalties our sensitivity, diagnostic progressing sales, artery conducting outside X a MPI. clinical provide enrolled Flurpiridaz U.S. of milestone XXX detection us on international, suspected this trial and the economics significant AURORA trial collaboration in patient regulatory endpoint and of is projected the F disease. Under efficacy,

the market. co-promote to option the the agent have in U.S. also We

benefit Phase our a and may LMI agent based fluorine-XX we imaging XXXX, the other III represents for is pathway. The first-in-class PET diagnostic that believe of asset molecular for useful tool a patient pipeline norepinephrine agent in populations

single the currently risk clinical Phase of stratification FDA are for discussions SPA an the III failure for patients. demonstrate heart to ischemic planned in We improved trial with

candidate. growth development will and on you We of are To external clinical apprised progress keep objectives. exciting our diversify exploring business, we expand and that profitability further this fit opportunities our our

capital of smart we part committed As efforts, allocation. these to and are purposeful

and Bob agent imaging broader the With – ready now to Operator, adjacency. on please therapeutic ahead. your is space go focus current and take I Our that, now are questions.

Operator

Raj Instructions] Denhoy Thank question first from comes with Jefferies. you. Your [Operator

line open. Your is

Raj Denhoy

with maybe What can Hi, – start – if I good afternoon.

Bob Marshall

Good afternoon, Raj.

Mary Anne Heino

Raj. Good afternoon,

Raj Denhoy

Good afternoon.

TechneLite there and the quarter opportunistic that business some strong noted very With was think and I obviously you sales.

overseas. I think you mentioned was

So of back what's a come when terms in any online? what maybe African you give terms those terms update us the might and more orders of in updates South in little also that reactor then and transpired happening could in of any with

Mary Anne Heino

Sure.

referenced for an So, occurred Raj, our supply for market they and on asked the manufacture of generator that occur they with own to is partner, Australian They Australia with for their generators line sales it in line. did manufacturing but us ANSTO. the Moly their we their them. supplier opportunistic ANSTO generators also us, and a and produce to issue was manufacturing

will back manufactured capabilities the from that for come up before and own providing to as the noted, communication not use we of in our them. them that revenue as they’ll we're fourth Bob they for anticipate expect to respect returning a our full-service. time service service With and which forward-looking them part them back we only But guidance own forecasts, into That start-up back involve that they also have not alluded, NTP service to Australian we shortly. cite fairly their Bob we have a quarter. shipped come market process generators So, that to their the assumed communication, by in and we is during us, to have sourced their we and recent Moly NTP shipped from

Raj Denhoy

other the question And second that as really quarter. I just so on in was Okay. fourth think to quarter will the guidance, complexion mentioned I it my – to that million $XX in my was $XX fourth teens, the businesses wanted expect understand so I'm that. different do that, we should of in Bob low the quarters couple the assume to of for of million continues to But and Xenon regresses seen you because we’ve guessing of TechneLite two $XX kind Xenon, you that grow Is the businesses, continue DEFINITY mentioned million of in reentrance of to first that stay kind $XX million stays kind low range back of million of and $X in TechneLite that the as how kind in of range the that we competitor the then kind range. total? low

Bob Marshall

forecast, back. so four are that that's key NTP There think the we’re whole I the you Raj, also will, doesn't question. Yes, a seeing then continue there that if hopefully, great continues recent assumptions in have just – this we run basically DEFINITY come of sort the strong year, in expecting the we growth its and rate we've been quarters

rate that the are than QX. to in to sales supply So, we that, been that ANSTO but happens with able our whatever more Moly able available be U.S. run assumptions the that our not to able market would to that in, be offset to had expect through we’re overcome

Raj Denhoy

one Okay, your is as Anne, X. Mary I debt-to-EBITDA that’s so Bob, helpful. down you one, And mentioned, last below then think, again, now maybe just

You are X.X.

perhaps have offer particular? you about dynamic aggressive talked at or deals any in looks in your pipeline you being of acquisition. in least focused how terms more bit You Anything for terms of and can areas are on a

Mary Anne Heino

is offer, specific will Raj. There nothing I that

say will our healthy am something. of very I rest will is As imagine, can as that I is I in it, our to announce ready ratio leverage balance note, you the offer when sheet. you as shape

prepared So, execute do on we to strategy. our feel

Raj Denhoy

great. Okay, Thank you.

Operator

you. Thank

Credit Suisse. Erin from question comes next Wright Your with

Your open. line is

Erin Wright

that new that did can to you from Great. embedded any in other the offsetting how TechneLite to expectations. kind new point offer that the the are relationships aren’t of quantify potentially the Australia? in terms offsets you there relationship quarter in your upside could in follow-up benefit other of And question, – Thanks. A much and be maybe fourth

in figure potentially puts and trying embedded out is elements to there? Just takes some Thanks. conservatism maybe of and

Mary Anne Heino

for years. and will new Moly on clarify actually to ANSTO The to certainly the numbers. just to will not generators Australia They is I relationship manufacture to for new. them. What a then is have us their us with request Erin, several is with supplier relationship the been speak Bob

a interim are out in was line in service they to with the we own one and repair temporary world us We that and of companies to generator while choice their into our to generators ask them. few reach the back for their manufacturing the on that manufacture bring line basis,

some that impact quarter. numerical, do third he to that then reduced more and much service expect in the from noted of Bob continue but the we we fourth As will into quarter, saw level significantly get

Bob Marshall

Right.

in number that significantly, opportunistic quarter reduce for opportunistic. falloff, So Erin, we put those did it ANSTO say a we when what we to as would to have – saw them million you because sales, going never contribution are expect they so we sales, third that’s are of start which but not to $X.X have the see to we forecast they are, on don’t because they

have we So fourth quarter. the into that’s embedded what

at sort the If you the much second with to year, expectations really line coming your quarter. third were into half in what the of year were for half pretty second the look of it’s of whole

should that your think I question. So address

Erin Wright

can stand And you now X mix other terms but years hires to other with guess sort in only that business hires and the efforts helpful. your kind process a from jump-start Okay, of of X your business the hiring how made not aligns down vision where including could I term yes. have that development and of with of you Thanks. longer road? how this of you kind operational CFO, that speak year-to-date, functions several and to That’s then

Mary Anne Heino

Yes.

Manufacturing would out changes kind role, development. in breaking know, of and title that speaks having HR was switching development for future-oriented capabilities, business certainly continue that expertise really and to I now. and is also company then each and as a of the geographic, be Commercial I new that you I intent but of roles, of the of year not was looking by opening at last that now team where was Operations, opportunities, role that and search and I as specific strategy. one only take integrate added And it manufacturing and it have singular the assess the to added some or that CFO corporate with it what one by a it to Erin, very identify, be the and made Head my Head With think a So out changed and that do that yet I not I actively to intent. is key Head this have is in our have built I Michael have a underway. billed very I it

Erin Wright

Excellent. you. Thank

Operator

Thank you.

Huang comes Fargo. question Lei with next Your from Wells

Your line open. is

Lei Huang

to Hi, thanks I Lei to for taking just clear QX your for not. my question. Larry. in to in guidance want back the guidance and It’s be go on what’s what’s calling

So assume online they be it sounds like might even NTP your resumes back quarter? guidance partially during though production the does the not period

Mary Anne Heino

That’s true, Lei.

our NTP our that of assume we them, positive continue guidance NTP Moly have that third two as the does supply other to the returns we in from assume the not quarter. signals leveraging our in forecasting, fourth the receiving suppliers mitigate quarter does purposes chain. For of despite by absence service It in to

Lei Huang

Got it.

Bob Marshall

bit to these the of sort from tack – it I just margin want remarks. further, Bob. I that prepared comes having the a revenue noted on also because to as this on of just where just if that the kind is – impact is my in revenue gross walk – Lei, to I little And down

just we’re – point that that to so margin, to getting source to from on it gross we’re terms on benefit impact. slightly COGS, would – in supply gross note that’s of hit of then million then that, margin expense sure favorability it new in a would that sort an point thing make in of a also purchasing, part more where of with our is technology based be as that that has formulation, I – But I of reached and is mix not flush is part pressures we’re a because the out assumed batches to one customer saw just as we didn't run going are was temperature but balanced I wanted revenue the wanted in just that the incrementally we of about timing as the I the expensive milestone $X DEFINITY manufacturing transfer the would our to point – need out repeat other be but completely to not and part that whom process the as models not so because have to qualification want fourth different in within And we that we cost course our see because if we – a with line room is out. adjusted EBITDA. quarter,

Lei Huang

it. Got

helpful know That’s to about Okay. really QX, the COGS.

so in sales the guidance. part to the And your back guidance, in and but it of is there's It usually call when some had it's opportunistic, you opportunistic also this in you’ve know assuming some sounds business, not the revenue I those there, ANSTO? the number, but about $X.X what guidance assumed obviously, like in past not going just million you're revenue

what’s clear in So, included I be to guidance? that want just

Mary Anne Heino

we to sales – and for order significantly But that million Bob our what quarter because did included in in ANSTO start continue forecast. forecast that were very assumption opportunistic to specific down $X.X those as that our case, very that QX. question, that right. sales. those is So, we included you’re they have will us fair was a from of past, of significantly recognized Lei, line that’s from to the reason, In we are In we the fourth into been and this the not mentioned, the say – sight have

Lei Huang

it. Got

the then TechneLite or you it to that helpful. would similar sales of different? margin rest of to And That’s is very the ANSTO, in business Okay. terms your is margin say the and

Bob Marshall

slightly different, very it’s say wouldn’t it better. but is I

Lei Huang

it. got Okay,

mean, still just on I the and DEFINITY, little but terms numbers obviously bit see the anything call certainly dollar versus first year? would changed have of quarter year-over-year in market than anything that share, to is a of terms the bit the then in growth, half in of the a I absolute And good it helpful. out penetration, a expected number growth. the lower pricing we XX% both that’s Okay, Was there might

Mary Anne Heino

No, Lei, is not. I’d say there

We continue the growth to see of market. underlying echocardiography

continue contrast share which XX%, reference to in at and I've we penetration. to in the see We hold is growth above that the continue offered past

especially to a time You XXXX we growth growth DEFINITY which on around very or are correct that that compared forward down and XX% as slightly, perhaps XXXX, basis. at consistently to it the is still think close held XX% positive but of overall I see

Lei Huang

Got it.

just And color. one that's one and the by helpful. Okay, for then That's way greater really the quick pipeline thank on you your helpful.

LL move XXXX, could kind LMI it year start in III would to discussions the – next like you you – or you’re On this XXXX with that Phase on still of sounds are into the expect still so year? FDA,

Mary Anne Heino

don't but this to never, I likely that XXXX. patient enroll in won’t say – never will able I be first see we’d

We it’s our it a enroll actually had had had mentioned had somewhat quick agreement with we We other and FDA what to patient. DEFINITY. we go. site It contract. until enrolled trial Our comments, easy ready would today, once but the until first bid into call my we trial our as design just we fact, the for that SPA. We our enroll process patients before waited SPA CRO LVEF we was that stand with meant actually of had our our wait agreed have in already, selected, to an referenced and SPA first in SPA to hand for on come activities we the in agreed went we that our will up one the commitment we’re but to the upon the I to and get not I and from patient to of that on three with FDA, is agreed we is

Lei Huang

it. Got

Okay. Thank you very much.

Mary Anne Heino

Lei. you, Thank

Operator

you. Thank

Larry Solow comes question Securities. with from next Your CJS

open. line Your is

Larry Solow

Thank Great. you.

growth year-to-date quarter Just much a Mary the pretty I the it On few Anne on actually line follow-ups to of XX% with the in was handful that. DEFINITY, think – in sales.

sort sort situation? next slowed forward It a are sustainable. patent going of has little to low but from of few growth comfortable over obviously specifically, probably numbers not that trend mid-teens years with pretty But barring there. the constant whatever weren’t maybe you So, any bit

Mary Anne Heino

I think suggesting the We property of should that an Larry we revenue. and Hatch-Waxman status with what the filed. DEFINITY the of that see the And in have be intellectual we remain the is process was I DEFINITY growth sustained to confident Absolutely. with ANDA of assets

Larry Solow

does don’t if all on that, patent I come separate but Okay. the a have, And patent estate one as and out how guess, that that you VIALMIX on I of I the you into also play, believe called that, know patents, other –

Mary Anne Heino

Book Book of are listing, listed, also for was cover violation protect They apparatus. Orange they definition someone where not because Orange are they the would that that be We do addressable – in but by our have defined separate litigation, we not that VIALMIX also VIALMIX. patents our patents through eligible

Larry Solow

is of just And a horse not guess as your the soon their down limited on is right, and ANSTO. here, – or as just a gets is Okay, – sort fair sort then switching on I get visibility enough. own sales – much to that gears Is going based don’t being facility dead that sales as then of facility to forward. be opportunistic then you repaired their maybe

Mary Anne Heino

continue have orders already orders quarter. place a them the is the of from fourth with level certainly So, sight might short the period for throughout into in but that potential, directly of actually visibility line certainty our not forward that some

our forecast guidance but third recognized partial services as significantly in for revenue in for are we million I $X.X Bob that ANSTO So from sales as the and again in forward, reduced those we from shared, allowing we in move our quarter. and

Larry Solow

it. Got

recurring, sales So are inevitably to are have the to – abilities because – their own the set capabilities these at they but impaired meet right, their moment,

Mary Anne Heino

true, that’s Yes. true. Yes, Larry. That’s

Larry Solow

fair Okay, That’s enough. great.

other down to drivers sort quarter. so just of of the the – the Just of in are I’m beat break – the what some trying

right gain I as So, think right your would and right. excluding in sales in sales line DEFINITY obviously, had have one-time been you are line,

little had discuss how lower trials projected. that So, going lower of number a you that forward? the was timing your R&D of could were Maybe not – should we look trials what than at because and these obviously just bit we some and and there, is

Mary Anne Heino

speak the R&D I of up the quarter to next some to margin and strongly than we products fair think Bob, QX, product accretive that in timing some its closes year mix. the XXXX, as of as a post add? close actually more other extent may the mix to DEFINITY as anything we’ll that is perspective, it’s of more you’d out some into revenue in to our may to respect given out. like with catch think always From that sales addition

Bob Marshall

of those an well G&A as the and unfavorable that year Mary with flu referenced to work P&L, Yes. for of the percentage I the the pipeline it was of from of we has net in actually research mean, pipeline actions as in a the see that did percentage in talked third quarter I that do mean, because from – just I as relative in net increased looking mainly mean, the a quarter and revenue, perspective. headcount about, had at prior support to of sales as we development revenue Anne costs, the and quarter the development employee thinking same higher investments.

Larry Solow

Right.

Bob Marshall

based are And those further And Anne quarter in some the same to planned of into things the the growth has that just – have between the Mary timing business. in that part items that will some recruitment going the slipped fourth at supporting some that on time, sales of be so of referenced. just quarters. QX carries were from overall did But that there be and marketing also of there

really it slowdown you coming is when from is So look at it, it operating the more from margin than really gross a expenses.

Larry Solow

EBITDA write-off write-off, not but like inventory know sort your you how EPS. out looks And number, adjusted you for write-offs Right. I your that’s some an on of asset in

goods So of cost is line, your impacting gross your I assume that profit?

Bob Marshall

was to what more the run honestly, Moly was cost on materials quarter, the overall of mean, with is and margin to by I of do the were In completely raw we it able performance of terms gross accomplish has in really are it being that products. From volume main through the the the write-off well enough make any difference. an been system wouldn’t overall of those – really that material have a opportunistic for two basis what to perspective working was different drivers as

Larry Solow

sale are the far margins inferior opportunistic corporate And is average. know TechneLite on the DEFINITY level? normally to the the I and to that gross

bring So occur actually did this normally your mix your that but impact margins sale and not would quarter? bigger that down,

Bob Marshall

the from having think what higher Well, that’s and U.S. about quarter about about. why perspective, sales when reverses that a actually from fourth benefit sales relative suggesting am perspective a I gross think versus are opportunistic talking margin TechneLite exactly is contribution that a you to pressure I was you because it we are what talking margin

So you are...

Larry Solow

related in EBITDA, of to is that, lot to I mean related of little a the on the in seems that expense of takes is the puts is The line? right, it mean, quarter a the bit majority beat and I quarter or like that beat the

Bob Marshall

has good the DEFINITY And we a well. also contribution as more that margin outperform Yes. obviously, on

Larry Solow

okay. Fair enough, Right, Thank great. much. very you

Mary Anne Heino

You are welcome.

Operator

the back showing And to like this would am you. time. I questions Thank closing call Anne at Heino Mary remarks. for I over turn to no further

Mary Anne Heino

In our business you. we status with strategic Thank date pleased initiatives. the to of closing, our results are and

new and I updating we look our about plan believe are we the XXXX, As conjunction with in we team and forward prospects to quarters. out members for coming are well you executive certainly the we excited in of positioned business the

off. So much, with that, we very you everyone. Thank will sign

Operator

and Ladies the have conclude This conference. you program Everyone may disconnect. wonderful a today’s does you day. all for and participating thank in gentlemen,

Lantheus (LNTH) 31 Oct 182018 Q3 Earnings call transcript