LNTH - Earnings call transcript Q2 2021

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Operator

Good morning, ladies and gentlemen. Welcome to the Lantheus Holdings Second Quarter 2021 Financial Results 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. and webcast company's available hours Web completion the the section the after of for of the archived of site call replay will in be Investors the XX A days. be will approximately two to turn Kinarney, today, of Relations. over Director host for I will call your now Investor the Mark Senior Mark?

Mark Kinarney

Bob return a Chief with the remarks morning, call Mary XXXX open Chief over will Mary give remarks, will Commission then conference turn call. results the Financial an Blanchfield, launch. CEO; With we Officer. Commercial you update and issued our morning. will to our our Welcome call call will second President results guidance. and Thank give Officer; Marshall, Anne the Lantheus X-K, Securities our and to updated on financial commercial today's and under are then call and which the quarter good Q&A. Paul business closing update Anne Mary Anne on to the Holdings and begin Mary Heino, Paul to introductory second Form Exchange quarter Bob reporting the me with call and conclude a This was cover results. the financial and our furnished we press XXXX will to Anne for release, PYLARIFY then

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

you slide can of tab. site the in Presentations webcast, those Investors on our find the section Web the For under you not the presentation of

GAAP update of on from and as available to results our for will if impact uncertainties. applicable on detailed call assume SEC will of of filings law, financial discussion include results change the forward-looking of results statements. Investors these of also based measures Please even is be to outlook our pleasure get call to comparable Web and statements, directly a section particular, no required information. note expectations obligation the forward-looking or in currently by that, it our you best during my would during Before may those these and we non-GAAP the this measures except site. included certain estimate future financial to to over to uncertainties. business that the Reconciliation a that continues turn risks measures. this our statements In by most risks COVID-XX Anne. Mary Actual started, variety due refer actual to remind forward-looking With to indicated is a call Also, discussions now Please I materially. we differ materially like include these comments

Mary Anne Heino

Thank and successful good to today’s everyone you, and productive second pleased report on I’m the joining quarter Mark, that one. call. us was to morning a

first PSMA significantly the of well and maintained the During than commercial more the TechneLite sequentially. and the and of stable leadership commenced the PET U.S. with FDA quarter, market, launch increased for approval agent has agent cancer. its ultrasound XX% only prostate PYLARIFY, commercially imaging available and share announced we AZEDRA enhancing delivered sales DEFINITY revenue performed market

positive this value for on momentum building to and committed are We delivering shareholders.

prostate-specific definitive approved an PYLARIFY PYLARIFY therapy believe received to of X men membrane are why on box, the the to metastasis points describes PSMA, in metastasis. cancer. the surface is initial or prostate turn PYLARIFY PSMA, positron cancer expressed staging an suspected highlights FDA purple with I prostate provide of are suspected tomography, and/or have approval with addition to update who for with time recurrence or a and Paul targeted treatment where protein the initial candidates of May agent. patients PYLARIFY, call like fluorine therapy who PYLARIFY background antigen, for On the PET, over would imaging Slide on emission I are we the identifies our FDA. definitive XX, Before initial cells to important launch, on suspected prostate by the candidates the Starting for XX-labeled cancer.

annually are category men who currently approximately on While we prostate are in with scans eligible this there suspected men believe diagnosed XX,XXX cancer, may PYLARIFY for metastasis. approximately XXX,XXX based be

prostate Second, on PYLARIFY two rising are in awarded patients These indicated also have indication. the our shown candidates there suspected XXX,XXX blue and recurrence by men, may or a antigen, PSA. respectively, specific for prostate scan a as based boxes, XX,XXX approximately who as are of cancer

the by prostate you offers of see, journey diagnostic We to patient’s As years as and interactions PYLARIFY advantages determine can with physician treatment can a course. number a XX agent. frequent marked cancer overall, believe more is last or a

current as study. First, which versus conventional CONDOR detection detection was modalities. offers in Phase of by to our imaging scan patients modality low demonstrated it respect and PET in PSA metastatic high CT of demonstrated visualize is was levels limited disease the advantages when X size PYLARIFY with even not several nodal rates nodes of or bone with lymph disease not, metastases could the and

greater PSMA, Another location modalities primary is binding prostate detect works are to XX% cancer imaging it a scan PET the metastatic prostate enables and advantage cancer the of to versus PSMA. that PYLARIFY overexpressed more is not on of presence specific that of sensitivity cells than the reader PYLARIFY to protein by a cells. with that of and This surface of

The capacity high The is Production disease allows PMF, images of XX’s cancer contribute distribution and XXX-minute PET that reproducible quality, radio detailed prostate flexibility clear, F F labeled attributes high administration. XX. the is to facilities, geographic F XX broad at half-life clinical of third batch and monitoring. in or for and offers XX advantage PYLARIFY isotope F manufacturing with

proprietary, efficiency potentially have quantify of can physicians employs PSMA the of artificial distinct context, Finally, deep have assessments. Collectively, that learning PYLARIFY PET/CT quantitative medical reading software of benefits patent-protected anatomical reading will aPROMISE assist analysis automate PYLARIFY advantage to images. to enhanced and of is the quantitative reader scans. a to we with reporting. in reproducibility and the and PYLARIFY intelligence enable device image provide these designed aPROMISE increased to precise is consistency and contribute developed

studies prostate doctors clinical the families an as to candidates managed the make potentially have which how cancer. treat their data of more prostate is cancer, for of of role the our conventional to Based from of the may prostate in likely Importantly, than along demonstrated to believe earlier we more and informed cancer PYLARIFY trials, decisions product believe will spread accurate biomarker. an patients data about we also on with important the treatment from development empower important detection our more for disease, their disease, detect providing imaging PYLARIFY and clinical

will is to by compound name, trials XXXX as PYLARIFY with Piflufolastat such leading Bayer, clinical current included applications, several refer ongoing Along clinical prostate trial Biopharma. Regeneron and assess therapeutics candidate, these companies PyL POINT PSMA expression our PyL. X its XX for F other product in also our For Phase to for or I with cancer

lesions, shown external launch Gleason I of The well on score be with PET/CT radical multiple which and and higher PYLARIFY. common were test cancer prostatectomy node would and left CONDOR in CONDOR an action this equivocal beam an our the This PYLARIFY a side therapy the iliac history retroperitoneal a image to radiation an scan, over on Before lesions to aortic a you to and identified slide. other biopsy. image of is patient image X later This Paul results by same versus XX-year-old demonstrated of Phase found share of conventional the with as from right results with the shows turn lymph PYLARIFY in here, confirmed to-date, as patient X+X, para/peri call on prostate was other study our which I image to details like Similar the in similarly PYLARIFY clarity forms provide studies. results trial. imaging to image

extremely of excited are about We PYLARIFY. potential the

Now, call Paul. to I'll turn the over

Paul Blanchfield

be have Thank a community, the morning, you, today shareholders. to our covered our provider and national It's of approval cancer PYLARIFY, since strong our media benefit months the progress prostate local multiple patient, to maximize launch to the to was the approval potential customer good U.S. by the two customers and everyone. of FDA’s plans healthcare In and interest, share here Mary outlets. Anne, PYLARIFY and and we and seen pleasure

not used facilities, with government will PYLARIFY, approval that projections or post has these current I share hospitals for present of to sales specific image been patients imaging I already and today centers, patients. While data most at PYLARIFY will product sites imaging freestanding multiple

usage closely are and we and tracking metrics of are We recurrence experiencing. breadth are these ordering with of interest the that pleased

Midwest, activated XX well York, Chicago, encompasses now the San Southeast, have three largest as the network manufacturing that the Angeles to-date, U.S.; New and areas in including as in Diego, Northwest. and the the and been metropolitan Southwest PMFs locations Los select Our the

across expand over to of availability year-end. year, broad with PYLARIFY We remainder to continue expect availability nationwide U.S. the the by the

have basis discussing have experience important national FDG our million meet PMF are manufactured network and a partners an with used cyclotron to network XX well PYLARIFY adequate doses and X in to of network, and PMF our to to that scope F the we manufacture understood able we will While diversified PYLARIFY our our confident it's that be scale. at XX add is across manufacturing multiple working Indeed, the with PET manufacturing of almost significant annual and PET demand. our have partners imaging XX. F on is ensure facilities radioisotope F we contracted supply a isotope,

proprietary training prostate incorporation centers PET also team. investing a commercial into and benefits resources, will include market infrastructure, field F which in and well PYLARIFY, advantages our imaging all sales prescribing by realize network contracting of a team, our make access a cancer. as hiring eventually PMF and PYLARIFY best-in-class resources radioisotope, are the of with of manufacturing scans, the As intelligence as should targeting PYLARIFY-specific dedicated other XX footprint, We of of PSMA our which imaging for the with men believe specialists help physicians partners, commercial including agent and combined reading our expands, supported our better home office and imaging, artificial we the access

word a about patient Lastly, access.

community the and believe I'll make the be use that will can men for we laying Our coding, commercial appropriate market and obtaining and and commercial with government reimbursement timelines prostate has status and the cancer, the cancer payers. payers turn lifecycle identification coverage millions important critical a groundwork agent. to to call ensure This reimbursed with commercial teams ensure to and Mary product. payers the related governmental prostate Anne. and available patients of the of impacting pass-through PYLARIFY We progress over to significant PMF with adequately been for this partners, commercial ensure back appropriate coverage remain our of track internal with both of team make access facilities our contribution for and the coordination to is and now treatment on U.S. covered PYLARIFY broadly We potentially payment.

Mary Anne Heino

Thank you, Paul.

other review second But products to I'll in results report with speak to to Bob during that pleased prior the the DEFINITY. portfolio, I'm product quarter, candidates actual Now starting prior will compared commercial the demand quarter and pre-COVID-XX DEFINITY exceeded levels. revenue our year. as and

sales on up in-person, still now are While dependent customers, much year. from approximately of the of geography over team’s start very the promotional efforts XX% at our and DEFINITY XX%

representatives positive have customers. trends, sales stable resulted our combined in-person with returning forward DEFINITY share These their looked Our to strong and in reengaging revenue with growth. position, leading to have market

significant. the growth. the deliver anticipate As agent will at approval we to sales sustainable DEFINITY of believe remains this we DEFINITY’s we opportunity XXth FDA for market this the anniversary approach of continue month, end And

have [ph] now for We're and trial second we've marketing AZEDRA. Kate a for functions with roles the Harmony is Kate most have customer centers diseases, long as held patients twice And because President, AZEDRA the Kate available with to customers, patients treatment peer-to-peer up AZEDRA, leadership as we're and to of and two that make contribute Moving single more we long-term AZEDRA the excited across commercial AZEDRA. and And to have therapy to board both the last Biosciences rare of to Therapy important growing. AZEDRA, dose In patients increase sales availability believe confident Vice the recently overall than and Several sales who are Behring. to optimize value as survival increased of hired AZEDRA’s we follow for doses dose. patients. launched June, accessibility in CSL which we this to I'm was broad up introducing to will our paraganglioma. excellence patients. for will our Radiopharmaceutical role, to new to chosen to we has approved her percentage will received is only report growth of leadership pleased for only campaign the Oncology. their pheochromocytoma its pivotal the lead approach, Holland of in begun plans new significantly see pleased from teams positively received awareness Kate education In This new a on AZEDRA who changes year. that as completing

on XXXX, of studying treatment designed PSA are Moving PSMA-targeted therapeutic PSMA-avidity endpoint with we patients who PSMA-avid our rate. our is in a mCRPC. combination In PyL disease abiraterone. study I'll is cancer, castrate-resistant have concept the a chemotherapy or X metastatic naive iodine-XXX for by The mCRPC, of to proof primary prostate trial have product our enzalutamide who determined this of or XXXX scan in study. for discuss the progressed and response pipeline, Phase candidate XXXX multicenter in ARROW, as on

this We plan recruiting across enroll Canada, is as We and have now and planned. enrollment the patient approximately in XX U.S. response, include clinical survival. patients endpoints to Secondary progression-free XXX sites overall and actively study. survival progressing radiographic

from for update. use a to study financial clinical to turn call in proof I'll We development XXXX. Bob will over the of the our data next now our for determine this concept plan steps

Robert Marshall

noted. you, will quarter second everyone. otherwise morning, the Thank provide for good financials adjusted results, focusing highlights and Mary on I Anne, unless

divested quarter. contributed generator by are from AZEDRA, was of portfolio, Beginning higher DEFINITY to RELISTOR. the precision second higher of strategic loss levels volumes by solid compared part similar to other up supported volumes. million, the the to the from at revenue oncology rebates the the year allowances driven were Turning of the XX.X of prior revenue XX.X% quarter Radiopharmaceutical the mainly quarters. Progenics performance year increase has the quarter. sales, with prior that quarter revenue prior the XXX.X promising quarter, run from offset A and sequentially was four partial prior full from XX.X year rate performance X.X prior pandemic of higher Rico opportunistic net the Sales an year as the operation quarter, XX.X% on of revenues for contribution million as impact was prior includes over the revenue diagnostics, namely the Rico of XX.X% tied COVID-XX of well sequential divestiture as XX.X% now Puerto year XX.X and million, year net solid continued comparison in Within in operation. and TechneLite previous precision million by Xenon’s diagnostics, on from up the due the XX.X% quarter to Puerto from to sales. million,

addition in reside As reminder, a this category. PYLARIFY AZEDRA, and revenue within QUADRAMET to

annualization the cREPO, and X.X cardiac solution was software completed royalty. In partner the offset led of XXXX of profit in this spend with XXXX the extended Progenics, the driven current was on partnerships XX.X%, an study the well sale The during commercialization Also of for DEFINITY increase favorable COVID-XX year, Japanese synergy strategic margin to the million, with mix comparable first by at net the level efforts XX.X% to Lastly, the quarter, for in second RELISTOR on but basis, and line impact in Commercial quarter as pandemic. accounted well mainly by primarily DEFINITY in to the by ARROW Gross we as from as primarily the clinical product for offset manufacturing and a prior due by volumes acquired other revenue increased of from expectations. continued due XX.X%, year, Progenics continued driven were a basis. year intelligence to partially quarter the our quarter part progress year-over-year footprint expenses of in the prior expenses increased is in second for an increase logistics a the achievement. XX.X% as market. posted strategic unfavorable artificial the Operating costs investments PYLARIFY year Moly by similar was the a COVID-XX distribution revenue, from comparison.

in drives determined noting a amortization. in expense before increase same also and adjustment is on million CVR and fair of taxes. it's quarter of with Monte is the in counter savings The unfavorability over X.X comparison spend the number year. recorded Also quarter, in expense normalization XX.X% contingent initiatives some Of cost using we million the liability, net period million to this liability of year. XX.X the of was Total liabilities, the worth the totaled amount, contingent associated plans quarter PYLARIFY year stock financials, had COVID-XX as the was Operating acquired X.X driver. company impacts which for quarter an adjustments the million with value expense intangible that Carlo a Additionally, XX.X our or profit prior of quarterly non-cash the the million the incentive contingent simulation. to well assets including prior main which as XX.X and in CVR current

current Assumptions acquisition, is rate. company's in other the of utilization discount The estimate and appropriate the volatility future an to model integration of expenses. and non-recurring related include remainder forecast, then

rate Our adjustments. year-to-date, of XX% and the was for capital the the quarter Rico effective consideration contingent impact operation treatment tax the our of Puerto and and divestiture X.X% reflects gain associated the in with

the tax portion adjusted of a Additionally, million the of information, rate. second an diluted our to XX.X% profit on GAAP earnings shares the which or weighted a a quarter last share year a in closed on and on which a reported X.X UTP average modest loss newly quarter million Progenics The resulting based increase had increase the basis, quarter, tax XX.X per were of of acquired $X.XX that were and income provisions, we a position, acquisition, fully of approximately higher based due basis profit the from uncertain year-over-year lowering outstanding loss of share the was an net of of for released our Notably, impact an on on for June. fully an adjusted basis, effective XX.X%. a $X.XX diluted earnings per prior X.X%. were

cash to flow. turning Now

less quarter equivalents X.X Free an X.X stands operating XX.X million, Cash XXXX. XX.X over expenditures, increase up now cash cash prior period. to Second of cash operating was QX slightly the million. year compared we million and restricted of as as totaled flow, in prior a use totaled XX.X flow the million, million cash which Capital cash define net at of expenditures flow quarter. from XX.X million year capital

have comfortable with bank million continue liquidity strong to are our undrawn revolver We access our and XXX to position.

to XX% Now and We quarter the year. forecast of strength X% of range XX be XXX turning guidance QX summer approximately million and XXXX. the to a of on full increase ongoing impact the quarter XXXX, of and for in the revenue into The takes the well million recurrent seasonality as PYLARIFY for over to an of sales. as of third third consideration range DEFINITY

we million be XXX full Therefore, due business. are to from range updating to million. XXX to forecast core revenue XXX XXX Additionally, we our view million in underlying our range trends a of the now million of year in prior to

it on important this a contracts, to second Lastly, $X of we during is half one note the the impact quarter, to carries which strategic revenue TechneLite made net exit our of million a decision year.

full for forecast year revenue into this consideration. impact and have QX taken Our

earnings adjusted to initiatives. share, revenue Regarding remain investing we in per committed growth

third $X.XX a adjusted to Taken quarter. the of $X.XX be for in EPS should range together,

for investments. pipeline year in adjusted account full our outperformance, raising to incremental year-to-date part are by EPS relative We offset

include related $X.XX. applying now part adjusted does $X.XX EPS be we to COVID-XX programs range of $X.XX term. not of a per versus As near to credit in share expect government range anticipate in a $X.XX for we prior forecast tax of to This as the the such,

this let Mary filed can turn find this XX-Q Anne. morning. the our to over topic With call in that, on me more You information

Mary Anne Heino

Thank you, Bob.

you As see, successful was Lantheus. quarter second for one a the can and productive

informing and deliver With value. the of DEFINITY growth our confident we strong continued to PYLARIFY, launch about approval shareholder and guidance, momentum ability financial strength year performance and are our full

recognize backdrop progress against I global the Before year-to-date, but I the quarter, made evolving this questions, uncertain of like all open continued not the only call to to we've events. pandemic also would

Lantheus is and of tirelessly to trust place to performance serve only by ahead. and their Paul our in ready committed who best efforts. questions. I healthcare employees to their us. now Operator, our recognize, possible the work go shareholders appreciate take thank Bob, guarantee made who always, With and them As customers your continue providers, please that, for I we patients, are

Operator

first you. question Leerink. Thank from Richard from our And [Operator the of Newitter comes Instructions]. SVB line

Your line is open.

Richard Newitter

start or out kind as a maybe impact if the in sense Thanks to you for back the $X contribution million or PYLARIFY taking Is mentioned PYLARIFY, contribution? that us about X Thanks. PYLARIFY contract, what And your What the you anything is parts of now TechneLite right just there. half, have curious million counters into you the from in exiting assuming approval? baked maybe that's for higher just if the give you're coming I'm questions. placeholder million $X light that’s outlook XXXX, of off consensus TechneLite? X see that could that a there. you had moving Wanted little about the to on placeholder million for XQ that The there anticipated to for that a

Mary Anne Heino

Bob here. Good morning, to one I'm Rich. going that take let

I'll range -- giving let Bob guidance some general on PYLARIFY, give guidance As you specific there. not but know, on you product-specific we're

Robert Marshall

All right. Good morning, Rich.

makeup, guidance understand you been the I the So contract think will, the is launch off as industry if strength is think do I just TechneLite And the you such, of for of modeled QX, as you and appropriately. underway. generally think coming The things underlying the that getting have about really business. that of

see can this pointing to returning doing DEFINITY QX, there I'm we’re well. levels. results And with in is the so to pre-pandemic very from extremely And as We're is it's what pleased progress making. morning's like you

our going lower revenue fourth a quarter generally highest seasonality. our generally bit of course, sort revenue to there’s Of quarter. sales of year. for little is is quarter But QX the be

we some -- had did high because confidence our it is I the we of of baked in do what the get is approval as went feels But been we sort have this considered appropriate in of has modeled forecast it PYLARIFY. XXXX as already we as have for said, We that earlier, forward. And think takeoff underway. is continuously it So think real PYLARIFY. sort

Richard Newitter

we just kind helpful. contract not million $X forever TechneLite? that the for $X goes What new just How have that, That's exit higher, forward? then think was likely that Thanks. curious of million about the would at guidance going else for equal? and all away that reason base? Is And I'm if do your been a

Robert Marshall

address just Rich. The X of the me half, this. Let million is across the second entirety

So it it and -- spread would be But sort of evenly QX QX. Mary Anne between think of

Mary Anne Heino

not back a same revenue the the because in that's contract. noxious it the that on company And stance really a say, Yes, taking that's much occurring a say don't that a These where to market than particular to the will a customer. see And your with of on a we situation of more similar nature saw annual away in this market. within being same We that permanent voluntarily the dynamics the the contract. Back chose point on we enter would question at this, business smaller my the I’ll healthy in address decision I today. I But back larger -- took significant I had issue decision. much a market. timeframe, into stance contract this full as were that go And not XXXX, else. we're it negotiated an the the And and that stance enter the company this would We time, still bigger into for basis. take much took time, we more honestly, at represented in are we almost for we that as anything market see as few noxious at status for what that's quarters, radiopharmacy say more the we was in contracted doesn’t a would of base. contract, we contracts that decision. and about not contracted And it a And piece forever.

Richard Newitter

reasonable, Okay. whatever that But find an from that something of be kind million annualized prior. out to one right? on have thinking you you if terms was or don't theoretically negotiate appropriate Is that would $XX come about 'XX will

Mary Anne Heino

So because not other would market agree players other players going share we the market, with I'm business that in see. up the pick we more the that that that have of with that event might to fluid of statement, in change the means Rich, not is that we market the and and not amount the a

Richard Newitter

Okay, back let in. I'll jump and very helpful. others Thanks. jump in queue

Operator

your the from line Anthony from Jefferies. Petrone question And next comes of

line is open. Your

Anthony Petrone

updates of first I'll there. XXXX? pass-through And next months, the update clearances. looking Any then maybe know of A couple so just evolving would on you. far Thank side. on you. more be there for an be again reimbursement bit PYLARIFY? was PET in XXXX? year to just the on questions. in questions place into heading Hi. secured of six on strong Anne, several get an on into you kind also Thank clearance. Mary facility launch in in My and congratulations PYLARIFY a many so a with had manufacturing just I was there on code, an commercial initiative CMS will How it that And throw lastly, update starting the then coming

Mary Anne Heino

Terrific. to you much I When speak right let that, I'm often me, to Paul. usually thoughts them those to he's it. of morning, closer Anthony. from get hear Paul actually because all Good going some

let them So directly. address I'll him

Paul Blanchfield

question. for Thanks the

two in take parts. it So I’ll

and the the PMF CMS pass-through. related part plans, activation and our rollout The to our to second related was first

first So the I'll take part.

as the metropolitan around more that we sites have to which areas U.S. of our plans which and you'll California, the us pass-through our majority well to out by footprint the As XX country, New I United of commercial mentioned, end, we marketplace year pylarify.com do piece than across Angeles, of footfall Los end by major three aligns would vast to the as the see including for get the than have year, sites as PMF largest in the more York, activated across the We as roll to States segue coverage do cities XX Southern to expand on second status. get to the Chicago.

patient As of September very which coincide hospital X our we we do the effect align our this which majority XXXX, this coverage would to submit January X pass-through the would of important year, with the outpatient application conveyed, activation is PMF to have Medicare to market. obviously setting, of with plan pass by community through of for go into which activation cover for

not this very through are And well so two XXXX. mentioned, in feel we year, on those to but, growth as only synced PYLARIFY Bob support continued

Anthony Petrone

Thank you very much.

Paul Blanchfield

Thank you.

Mary Anne Heino

else, Anything Anthony?

Anthony Petrone

follow DEFINITY. my be on Just up would

Just ESG, backlog obviously some in procedure to looking that due quarter. of terms COVID. like came of back certainly It looks there in was at the

just maybe landscape? how echocardiogram quantify update long of this there Is into the of And at year what is later tailwind So little or is if a to is backlog sort still a perhaps of that still bit an the way into moment early there on Thanks. 'XX? one? a

Mary Anne Heino

to lull Bob vacationality done being tricky vacation. and have to of usually the being seasonality a vacation this on Anthony, bit staff period as what we year or because both you tend So a that's of tend one a where see on mentioned, patients question bit in either procedures of of a then now, because is little because little we being call

real retrospect, we where we to because is only the the see have what now I in we the the is in until know that's performance. because as again market at are we've underlying they can't rebound, levels. is that. are confirm DEFINITY date But pre-pandemic assume point up that procedures as Are have, said, exceeding the -- data we can't seen is time. really catch for a and see that driving it So we performance data of is retrospect, that say, you not of in seen echo now strong to in what the fact see in We until we with see likely we performance exceeding which going general, less that trying data up DEFINITY see kind trying say, answer to people in we we we backlog? retrospect, that happen? not because to So something what we But to are is in won't

Operator

the CJS And our Larry line Solow of next from from comes Securities. question

Your line open. is

Larry Solow

guys. Thanks,

Just tracer new whatnot, thoughts if drug initial towards you Can you came a just out that they on would going can't just any PYLARIFY color sales? awareness really awareness, any Are just be the on realize I these Are of give level of came sales patient the on docs? or Zoom? Any using great. the doctor have docs and sales, us as out high or feel? on quantify sort you as anecdotal but couple curious questions. initial

Mary Anne Heino

So Larry, think for good call. I morning, Thanks the joining first. --

I not coverage PYLARIFY As pleasantly the say be we specific very mentioned, on with And amount of speak will referring at Paul surprised, a to received let Paul that and were we data wouldn't bit PYLARIFY this. I'll we We can little pleased sales. to on that. were launch, but elaborate

Paul Blanchfield

absolutely, Anne. Yes, Mary

was approved picked PET we're PSMA I think incredibly country. across imaging first available many and outlets agent FDA media commercially PYLARIFY, up the by only So the pleased, right, the

seen, hospitals, majority of the these mentioned, scans. that's facilities, as centers, government centers, multiple PYLARIFY be whether types multiple We vast are already ordered of freestanding at have imaging ordering we've

activation now the significant two is I as have this we U.S. healthcare of sales PYLARIFY as have that we approval, community out ensuring sure launch to that we healthcare Mary seen the out in the more to major but I ensure years so as could building and middle of benefits only that that successful we commercial to to note there Anne marketing with the actively that It July. would professionals in and driving certainly and aware that benefits, and that come. of important this note what making we've centers noted been and building we’re attention. aware community. rolling of where our are mentioned of are out teams are the not prostate and market product we making have And media we awareness. mean are out awareness, specific to There four infrastructure, of physicians, up Physicians our there a dedicated imaging received are year own PYLARIFY, do we PMFs But strong cancer uptake. XX are was the

Mary Anne Heino

it awareness, have all long everybody be building We'd to with to what somewhat where very use about what of Larry, the as tip to what and telling We're use of the be product, is the awareness were think, product PMF treating it's humble confident seriously market, now we very as building like is we're on also, taking classic said, build come that where that's the to that we're are, a a launch in you the and we're will steady I this. benefits of held it. believe that up have the product? the but fruition, this then and classic network how to Paul we product will launch a slow to how

Larry Solow

Can this you're more pre-PyL. in to see XX rate or think sales more it SG&A of maybe would of be years years, help less million to there you million, last fast? just we but of it XXX XX next at terms particularly Does continue clarification just a absolutely. over like I is not great. infrastructure, run go and side? pre-Progenics, on now building Any out that XX Obviously, Yes, your or million, the in couple grow, number? significantly like up just Do the from increases couple marketing of

Robert Marshall

in Larry, thanks. Paul I very a probably me. would the tight fist, financials as attribute to keep

in should of QX seeing you're said how to you ramp I million QX $XX terms that OpEx is, $XX about you what sort to is think of from -- I million. think the remember you think saw

that I and for itself in spend a we should QX activities think close to because to normalize level a As we where ramp. thing, sort back but lot growth. expect kind now it's whereby this were that I to little QX year, terms Maybe going QX, not top bit of to we're the sustainable of XX.X continued drive at of half the sort kind do we we get you would can of more, expect do anticipate you flatten as also in has you But to are are that manifest profitability R&D. peak to very line at really with moment. a hitting we're that quarter. of out saw the of

in the at sustainable support that check, hold making back been pre-investment the help in we is R&D, that were synergies of to to see you to support near longer the we've able growth took, drive of term commercial term. So office to sort be least we which reinvest where to teams, that the sort then able

to -- think but would continue improve, gross seeing expect you're would also expect to to I So do level I margin expenses I see out.

Larry Solow

on Is actually function And that of Okay. fair I just related at of the up. primarily to PyL, potentially noticed -- on PYLARIFY thresholds? then discuss value is a of closer just it's some -- it’s that that, Q the in the strictly that can those went there to approval, the hitting of you least that? CVR some those else got market, or you on anything getting based Is

Robert Marshall

Yes.

Monte embedded as run liability through of like derisk or so So and appropriate volatility to, the discount perspective, then is you current way volatility kind you approved, of where Carlo which it. is there was in this take so internal still things an approved from in discount and now it's it that event what did do the that as you fair also determine aspect you the think attribute I it well which it value, forth And in embedded on, is And rate not execution or continuing case, risk rate. really you potentially forecast. assumptions has simulation,

So type output, -- multi-factorial input, it's it and function then is of a output. a

so And it think one, I determined is people for here quarterly. the key gets

of change, contingent then can of so any value these So as the liability. this inputs

that is different what mechanism But we're forward. range takes sort forecast accounting it all is of look as long people that these So consideration an some inputs invert providing. into is of should we not this or guidance

Larry Solow

Okay, great. Fair enough.

on few return growth, for believe from the last know, years, -- market as any double of -- but still that's maybe to from sort won't continues reason to that to down, obviously, reason and whatnot we Just mentioned wane, this a I DEFINITY. last double can't opportunity obviously maybe significant. -- saw starting we some that you as Is to XXXX, begins remain digits. hopefully COVID, its Any assumption? question not settle wane that fair digit but that we DEFINITY XX% be noise

Mary Anne Heino

as pre-pandemic I we're levels. said, exceeding So, already

we we're But you as at already think were realistic were we're And were sure what So not digit, now performance because seeing I you the Pre-pandemic, said. there pre-pandemic. being already I put that here, XX%. range -- we want double seeing matches make to We yourself.

Larry Solow

teens. Right, high rather teens than mid

Mary Anne Heino

our relevance want do [indiscernible]. revenue, we And as forecast this to to our the we out is to of DEFINITY report that of because something of and do

the see quarter. this DEFINITY you'll So performance through

Robert Marshall

so. stack, just I is When at XX% QX, I number look that the think Yes. two-year even for or about

would expected, get of So growth environment. it market back But imply have we it backlog, in performance at of this about talking -- this a looks we of we Anne was what for while. Well, a the Mary team's that normalized know won't which that is terms the would sort are more confidence could that of have a we of saying, put in levels? like where kind pre-pandemic sort

Mary Anne Heino

can in and say It's Paul a us. weigh for well. here I'll as asset And significant

we job as did a great year have and business do dedicated Paul to resources are continue looking what needed team team at asset? earlier year a the to this We support too. every this

Paul Blanchfield

remain choice, DEFINITY’s we we're FDA number the as the of optimistic future. an DEFINITY of could contrast coming agent grow we maintain the as opportunity remains agent. future on believe this are to but agent think the from at still sales of up for about DEFINITY’s this anniversary the and significant. will we believe very suboptimal month, that significant a approval in ultrasound enhancing end of market use benefit of marketplace There our that XX% echoes And the I continue out market the share XXth in

Mary Anne Heino

[Indiscernible]

Larry Solow

color, guys. all lot. a Thanks the appreciate Excellent. I

Paul Blanchfield

welcome. You’re

Operator

our from from next Suisse. Credit the comes Wright And question Erin of line

open. Your line is

Erin Wright

approval that for from that are associated that about scans some tailwind of an prostate then to How well. you? just represent be Could all question here, you therapeutic? opportunity Biogen’s potential Thanks. PET the given Hi. Novartis’ of thinking cancer And meaningful for could you as increase the tied approval kind protocols Alzheimer's with a second potential

Mary Anne Heino

So, Erin, This good Anne. is morning. Mary

product larger I we products which that involved strategically -- the because use about and speaks to an of market a the that and that's in Lantheus, great the area isotope-related market, -- future isotopes PET scan the and market that point and treatment, in scanning be the is for very is larger Alzheimer's market. where bringing companion but in area the particularly that's to think therapeutically. we the overall role and thrilled Alzheimer's, a isotopes of intend you're role not diagnostically we're the of up in and of PET Certainly, about diagnostics the

it demonstrates also Specifically because similar pipeline for in that comes that we to thrilled in that there and products the role our fashion, were Novartis to associated own see product, diagnostics had market readout companion and we will have the the think there, again while the we have. positive efficacy our

the That are really choice which clinical for going such You lot a as being Regeneron, types heard thrilled made we to chosen Bayer that's as biomarkers earlier has that really development, been being the and only more are that. our companies doing of likelihood diagnostic part with of me work in mentioned ensure with and PyL development And partner we're make in becoming earlier what development, of higher on really getting is POINT pharma that be used and companion Biopharma. of clinical is earlier clinical the not therapeutically group, them. of services being to but to valuable decision to efficient, have that patients these that are to where drugs a points

Erin Wright

an roughly Okay, what XX% in of could DEFINITY, now Is range? sort the Thanks. great. share And it that us give where and landscape, you you're stands? seeing on on still then update competitive market

Mary Anne Heino

it. closer let Paul speak to to much to going because he’s I’m that

Paul Blanchfield

Thanks, Mary Anne. Yes.

We see continued on see as the competitive ourselves dynamics, XX% of still marketplace. share growth. market the roughly So with the U.S. we leader,

across leadership contrast the remain our and have position maintained agent marketplace. of We choice the

brings grow their years and remain continue and around customers be the preferred echo the our DEFINITY country they XX to And labs understand as still partner we so pleased that we across practices. to very after ensure support the be benefits to to able

Erin Wright

Okay, great. Thank you.

Operator

And from Richard Leerink. SVB we from Newitter question follow-up do have a

line Your open. is

Richard Newitter

Hi. follow Thank the you up. for taking

had just I'm out the guide to The what spread gets XQ, back I'm want between for TechneLite asked more? raising getting other I as Just question, headwind that, words, just TechneLite gone creates? underlying roughly by $X baked full guidance, your still to other year impact that offsets would and million momentum I that given XQ asked that up of clear. if you're not sure into evenly if make backup I DEFINITY’s because In the earlier. not that for I'm of getting guess continuing your have is even guidance marginally your going that that. and In words, some therefore

Paul Blanchfield

are It of there Rich, better more is what and of And more things, yes. the lot Neurolite sort so and up is so and but less, moving timing making parts a trends taking or seasonality it within, really forth other on. difference or the we’re yes. less, of ongoing of is into and we pieces account Cardiolite that DEFINITY in see

guidance? news, some higher a we is opening It external variant well. business. lot out want environment Mark’s that's baked causing it again, have an what also but against potentially. course, that a even marginally necessarily guiding in this still DEFINITY’s [indiscernible] not Delta into had -- are which remarks we have is that we to But as been headwind. we as have have there core a of of function would So But into of But, underlying different PYLARIFY there's

well. we're So The about is underlying core things, we the embedded very but business. the our time business at we results. same in doing extremely the are confident in in cautious It's way think

it. the then, performance You of guidance to through And this to that's us year. for see of we see our where the full have of year and over can sort our ability what business move the for that balance account to relative range course, led year-to-date going

Richard Newitter

Thank Okay, And and you. questions two product that's RELISTOR. other just AZEDRA on helpful.

about we or with this in going the run the But It be a product? you way like And thinking AZEDRA year XQ much for rate? much is really setting a or it? said AZEDRA, is had think building for through sequential What's should of XXXX of you ramp thing for steeper to steeper a Is XQ. the a 'XX. sounds And XXXX, of in much about promise contributor moving sustainable to of you're right you lot that in the stage a a on kind RELISTOR. same how quarter kind going First into forward? performance saw a stage be really by

Mary Anne Heino

felt, AZEDRA didn't have were I When with and want I'll Yes. steep would I've didn’t was was because off what kind hear. really customers. I was I what I'll ramps, the relationships you and you before. we access of that the really from was do [indiscernible] really to the it those first, the -- because made think you off perspective to hear I clear had. blocked That we Promising understand only to own the speak Rich, that said. been to comments very, customers right have relationships need jump need historic and you But have the relationship throughout we say, those to what acquisition. were is we forming pandemic word they already before a about base. kind young of talk Lantheus to And jumping built with from like coming didn't into we're true, pandemic from I've your

more And was that start relationship a you reopen. pandemic. really is customers poorly me really we've today, the something seen shut that to heard accessibility recently was by those that that say So now to as down

said treaters, for be we an that And patients some bring what there. and for This was begin of kind and we're we've to that's been to on the caretakers the now and quarter. how really to that possible interact And of the to along with But see is that what's not to necessary I what here. what we of with model pleased all the we're the acquisition, second which really particular executing It to -- awareness of would beginning really the community, from really able of so results, what we we've do with are change product. bring PYLARIFY the asset starting is to promises what kind magnitude optimal And of clear. disease. see need orphan that for saw in is us is optimal

not revenue from when what what we an team possible been we of as we are -- have we to But always committed as executive about the to AZEDRA. and that so magnitude entrusted a perspective we PYLARIFY. And us company, is about do a assets are is talk talking that the optimizing are and with will

we want So you, from is of the ramp talent especially, the that great able why have tell she's is be Holland company. to that about base ramp do And add But right promising that's some the company. perspective before. right will Ramp a and her with up. And our treatment. I the think I you is how word. with worked team the Kate right we we a resources that the also with add I've is what now a will and I to under is confident talent our know to modeling and great to right for word. to are that for patients of the AZEDRA

who as decided the Bob the great I said, centers, at AZEDRA have I’m promising need I also which think let treatment have we see part patients there RELISTOR. going their signs it. to treatment is to is now for more speak news centers of offering to

Robert Marshall

can recent steady size AZEDRA ongoing revenue of perspective. total at of noted. $X end million. have between trending range pleased our which it. we has higher and driver pretty you which this contribution the oncology in And with people that from one, don't level control continuously RELISTOR, our we're where toward able Yes. a the At sits $X.X at tell main look stream, too that at number, contribution we We're a is juncture, million more partner. that And which and very quarters, radiopharmaceutical ranged seeing just the set and to on from have It to be is I we're

but what So is speak we we're very pleased and solid future it. experiencing with what of trends to now might sort the be, very can't

Richard Newitter

Okay. Thank you.

Operator

you gentlemen, participating [Operator no This Ladies for concludes Instructions]. at today’s further this showing questions conference. thank in time. and the I’m program.

and now wonderful may day. disconnect have You a

Lantheus (LNTH) 28 Jul 212021 Q2 Earnings call transcript