LNTH - Earnings call transcript Q1 2022

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Operator

Good morning, ladies and gentlemen. And welcome to Lantheus Fourth Quarter 2022 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. will webcast company's available after website, of call the Section the the of XX the the for of approximately and replay will in be Investor completion days. A archived be two hours I'll for call, now Investor Mark host of today's Director turn over Senior your call Relations. the to Kinarney, Mark?

Mark Kinarney

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

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

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

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

Mary Anne Heino

have Lantheus am to And Thank say you, record performance. we increasing I positive by quarter and everyone rapidly to solid us. DEFINITY PYLARIFY Mark. very share news sales good joining pleased morning today. to reported a led

pursue as on follow Lantheus in We and passion and to continue the to strategy disease to our our a we accelerate execute fight compete, positioning category leader markets which better find, to deliver in growth, outcomes. patient

with year is US innovation our of take a delivering and exciting commenced we been minutes after launch, agent further time Paul our I'll on value. which PSMA-targeted including update prostate date on transform transformational to best details objectives for we the on has efforts approvals objectives, community. an to year imaging management franchise, XXXX focused testament in with are to prostate the PSMA portfolio on PYLARIFY alone. PYLARIFY and choice community, both with XX,XXX leadership than the more further we establishing I than executing a and XX,XXX patient the continues, to one our that progress. PET in am for quarter imaged and than launch now and our minutes, PYLARIFY, a a few diagnostics financial cancer shareholder of USA the This will first It prostate men line enhance in our with imaging FDA our believe agent As of thrilled you cancer market less Microbubble provide transactions in the strategic care, in our maintaining technology more therapeutics. as have new in PET but few been cancer advances

let me highlight PYLARIFY. a strategic Now, to take our few recent minutes with collaborations

precision trial treatment to castration use inclusion First, cancer with collaboration the for we development cancer. by aligns of expanded enabling therapeutic in strategy our Pluvicto, advance access Novartis announced PYLARIFY in approved ongoing for their cancer and programs therapeutic to their in in directly trials. medicine for This with a Pluvicto, to include partners in March, PYLARIFY's prostate on builds collaboration PYLARIFY planned PSMA-targeted recently their prostate metastatic resistant

turn, of supply PYLARIFY will As trials. from all selection their for and the patients we part will the related in trials provide Novartis, data with imaging these agreement PYLARIFY clinical with Lantheus of within Novartis,

Prostate AI During premier Cancer research. a PCCTC, on validation early integrate latest to advance is biomarkers development platform. also collaboration imaging research Clinical organization platform GE prostate or with prostate include novel AI-enabled AI-enabled this of artificial The biomarkers. month, their Lantheus' of phase the the Consortium quarter, that this PCCTC into and cutting-edge entered AI-enabled we the intent the discovery, studies for with we collaboration strategic Healthcare is to our And Trials multicenter strategic expanded collaborations aPROMISE collaboration specializes In earlier two or to to intelligence January, we a our in clinical announced cancer cancer. advance

technology GE for access to As unique global a platform this Healthcare an AI partner provide equipment, leading cancer. to supplier ideal prostate is of medical

levels record quarter. market challenges our Microbubble franchise. high agent, hospital Turning DEFINITY, our COVID-XX to Sales and despite grow the ultrasound enhancing in to staffing continued reported early leading and widely

mid-January sales COVID-XX to hospitalizations steadily subsided. as DEFINITY and COVID-related have since pleased that see increased cases have are We

as approval Drug source With Application addition are distributing to to on-campus the before as drive we continuing over our February expansion manufacturer. on-campus for to I'll briefly redundancy, facility was our New contract producing facility at our over long-term in in to margin supply Paul. supplemental well existing Billerica-based to facility, investment ensure manufactured turning to AZEDRA DEFINITY of manufacturing time. driven our FDA chain from and The now in our strategically speak

at medicine centers pleased offering in US. the two have team departments treatment. AZEDRA excellence During joined now markets with network the that are excellence first of the academic quarter, we centers of additional across And centers our nuclear of worked key

receding the access With pandemic physicians are AZEDRA and improving, for paraganglioma. and we consider COVID-XX with hospital will treatments optimistic patients both pheochromocytoma and

our turn products. update me for let key Now, commercial Paul the over a call to on

Paul Blanchfield

Thank everyone. you, Mary And good Anne. morning,

and in commercial community, execute Beginning teams we the launch, objectives. maintain momentum accelerated During market $XX.X the US $XX.X with the prostate namely sales deliver establish million quarter, strategy, of PET the choice with to with our our in PYLARIFY PSMA our to on our fourth financial Microbubble of to continued imaging the cancer agent leadership PYLARIFY quarter. million our as franchise first PYLARIFY on compared

We adoption. also customer continued invest access to and brand in the supply, contracting, across market

and manufacturing activation additional first PET two the further geographic or which footprint. quarter, supply investments included during of PMF, Our facilities, the capacity expanded our

identified PMF expand new provide existing We and capacity our supplement footprint redundancy in enhance have our network, geographies. and to also

increase As new highlighted synthesis capacity last boxes. our number by of produced. quarter, in us we batches allowed sites and continue to These investing overall capacity our to PMF at boxes expand additional existing

to size, doses selectively able PMF improve while have of local flying advance also in been still our activation. efficiency overall We and batch batch

believe to passthrough the longer our network allows customer half-life broad available XX our ability needs CMS, Within only Medicaid went and with status the continually manufacturing customers. and first meet demand, into imaging We our Our months, sustainable XXXX. for market F us increased with advantage. Centers code access, to with combined first HCPCS both PSMA this agent mover when effect of Medicare and and or for X, XX's PET almost capacity, January a provides PYLARIFY us the efficiently meet and being along commercially Services,

typically have product. access seen indications, We This US in facilitating for XX% and benefit placement point launch. of cancer is have ahead access in at and workflow Medicare also commercial considerable as cancer this progress its make to prostate plans, patients milestone covered well as ensuring of to to an and both PYLARIFY what this Advantage believe continue prostate well managers, the now PYLARIFY, with that radiology game changing is important a lives

We recently and used noting patient imaging or criteria, be for for Society continue to believe In will SNMMI, an use appropriate and important access addition, can all PSMA-targeted have their Nuclear the PYLARIFY this radioligand is to including therapy. for PET step PSMA the patients professionals Medicine care PET ensure approved health including selection to PYLARIFY. that PSMA agents, updated that Molecular Imaging, imaging

coverage customers our payers team and coding, relevant payment-related on access continues questions. and to market Our support

which customer During These place continued announce with centers. also contracts as and prostate targeted of breadth the communities to US to many enabled institutions contracting. and our have contracts, now with generating the XXX% academic our facilities of well imaging activities, demand And hospitals, am quarter, first us execute in have to adoption. customer we treat pleased we on I freestanding combined government expand cancer, depth as

We facilities orders government and hospitals have segment comprised significant of XX% growth year-to-date centers and initiation, XX% the respectively. seen with outpatient comprising following passthrough Independent hospital orders. in imaging X% year-to-date of

of increasing ordered of encouraged multiple having our remain also We doses. customers with repeat by the demand rate quarter-over-quarter, XX% over

believe contribute and reporting. to analysis, patient consistency customers our CT a end reproducibility enable assessments. We impact context PYLARIFY quantitative the of District as increased ordering in in AI to will benefits is a this PYLARIFY execute, supply across We highlights image to and and on provide positive the reader demand of actually the believe sales, it designed XX Columbia on having are impact patient potentially on quarter, precise anatomical fulfillment. PSMA almost efficiency enhanced generation first of product and basis. and XXX have also both these states and As regular of PYLARIFY care the PET Collectively, can quantitative ability is care

with AI centers to country. working and [indiscernible] introduce partner, are We across PYLARIFY have at continued the our key

new PYLARIFY selection the provide market PET on imaging to want I FDA of addressable an update targeted recent approval for Pluvicto therapy. Novartis' agents. a patient PET for PSMA Finally, PSMA imaging The addressable for creates in market total

updated increase around now to The $X.X is XXX,XXX market approximately PET for scans of market TAM MCRPC total year a is PET imaging As the patient annual approximately we opportunity PSMA addressable US PSMA billion. all per this or total XX,XXX for an result, which population. imaging scans, for be

indications. be We market. TAM to continuing this this forward as as increase Importantly, large PSMA look in to into and of agent to choice expand new medical PET and the PSMA continue imaging evolves therapeutics practice dynamic may

further can community. to our to launch DEFINITY. PSMA hold As execute choice of of continue cancer in now even position a recent against priorities we we will prostate And competitive see, you believe we and the availability establish PYLARIFY this the as with Switching to imaging agents. PET

steady saw improvement ordering quarter and have saw quarter and as the in-person financial the record sales, first the the turn case both counts growth we levels and year-over-year and course hospitalizations January. continued update. will of for I of The strong momentum year. And over remainder second believe shortages now in activity in staffing we a over the promotional hospital customer COVID-XX We quarter Bob to amidst call in even into decreased. coming

Robert Marshall Jr.

Thank you, provide of first Paul. unless I adjusted on the focusing results highlights will everyone. morning, And otherwise financials noted. good quarter

$XXX.X first the of to was over an an per quarter. was prior-year Turning quarter the $X.XX for Earnings or first the share XXX.X% million of prior-year increase the increase the $XXX.X quarter. over Revenue period. for quarter $X.XX, million,

in morning. results, our providing agreement. earnings earnings comparable per share this performance impact guidance in share note to these million QX Before to $XXX.X revenue on prior to of this the further of approximately numbers is of outlined Therefore, of are these revenue approximately that $XX important of $X.XX million within related recorded our Novartis the XX-Q underlying per and $X.XX. We filed it agreement is details

of to Turning the disclosed primarily impact, per of by the quarter compared from due to mid from rapid XX.X% $XX.X part due from as of benefited Revenue our million as of significantly quarter $X.X also QX exited last continued described allowances, AZEDRA, ahead X.X% higher the an higher TechneLite with details Sales prior-year with as down by approximate sites expectations. were million the last precision sales million year, quarter. the and the year, sales, revenue beginning Radiopharmaceutical care. higher to year were now $XX.X prior-year net sequentially net from oncology of million, the X.X% PYLARIFY, offset over and contributed in opportunistic and contract quarter was contribution includes sales in rebates in ramp from previously of revenue as $XX.X the of $XX.X prior-year which result Paul. This diagnostics. prior quarter. million up deferred procedures well expanded X.X% up a or to DEFINITY,

year. led XX.X% mix and of favorable basis. margin the have approximately for been excluding million, liabilities, noted amortization before quarter for better Novartis contingent basis Lastly, the points The in as royalty. by and acquired investment would primarily followed to $XX.X and million the the Also other part or stock If while revenue both agreement deemed Operating ERP basis Novartis logistics in amount, Of as and the in and growth be revenue, expenses or prior prior non-recurring offset profit a Operating a can the quarter, agreement XX.X% increased value basis PYLARIFY we chain million $X.X million with strategic primarily of contribution, incentive by for been the over in quarter points and CVRs, X,XXX net and the increase drive on is and XX.X%, of adjustments the exclude R&D. XXXX product a million expense related in RELISTOR in licensing an Gross company earlier, by and one-time has $XX.X the DEFINITY, on gross we points leverage quarter driven platform The new in year. event. associated costs. marketing increase revenue or was purposes other quarter to contingent of by XXX.X% related the workflow sales we considered $XX.X the X,XXX $XX.X year to of is an from which for same to XX%, of partnerships is million was driven accounting $XX.X quarter impact The revenue efficiencies grow. remainder $X.X totaled operating Novartis approximately a from percentage is the million by mainly has million due PYLARIFY increase favorable plans profit profit intangible Novartis first was non-cash X,XXX from prior supply margin of period to first $XX.X acquisition, Total Within expensed and initiated similar rights. taxes. by this integration XX.X% sustainable in expenses. G&A, investing respectively. were

$XX quarter. basis, Our effective per $X.XX an on first net million and tax $XX.X an increase reported $X.XX rate resulting the an an was adjusted GAAP increase prior XX% $X.XX fully and were the income million basis, $XX.X $X.XX and in was million quarter adjusted The $XX share for on respectively. earnings from million of and the respectively. of diluted year

approximate due earnings $X.XX a As and $X.XX on $X.XX noted the the basis and agreement, respectively. figures earlier, impact adjusted of Novartis been to GAAP have excluding these would

$X.X decrease prior-year slightly totaled million, flow, to cash cash prior-year compared period. million Now up capital turning operating operating as first from XXXX. quarter totaled $X.X cash million, expenditures, $X.X $X.X flow, of flow in million flow we was to million define as Capital expenditures $XX.X cash a Free less from QX quarter. the which the

expect flows of PYLARIFY begin As balance free generating mature forward of ramping receivables Cash the restricted receipts. stands as net million. month-over-month cash at of cash would to equivalents, significant $XXX.X cash into we to look cash, year, the we and now accounts

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

of $XXX full to the for guidance revenue of an approximately and XX% Turning XXXX. million XXXX, second XXX% be in quarter the the the of of second our now for to year. million $XXX range and We forecast QX increase to over quarter

$XXX only range revenue PYLARIFY, now $XX recorded million. the $XXX million of from This as to exit we $XXX also $XXX consideration be not Therefore, quarter, revenue to million from take forecast actual million first the but million the We for range million Novartis updated prior are of rates includes recognized which year. adoption at for $XXX to well to a QX our full-year quarter-end model million in full-year of the $XXX range now updating as of in into full performance, we view to PYLARIFY. continued

well our estimates performance consistent continuation PYLARIFY progressive amidst of Our increased penetration. encompasses as market competition of of expectations the as

be a of to EPS Adjusted Turning now in range earnings. the $X.XX quarter. $X.XX for to second should

in full-year We well as of adjusted relative adjusted of range agreement over expect Anne. for higher of are share raising PYLARIFY call to be let now the $X.XX. range a EPS per turn With from prior of to QX incremental the a We the to $X.XX EPS impact back approximately EPS contribution $X.XX versus Mary $X.XX account to our adjusted the revenue expectations the to outperformance as Novartis that, $X.XX. me and

Mary Anne Heino

you closing, leave In to Bob. key like you, Thank takeaways. with few a I'd

first would was a quarter patients both and strong Lantheus its like a prostate recognize notably, earnings. community XXXX management medical as period with record true to the revenue I PYLARIFY, of driven for of performance the in cancer. by for First, innovation That adoption the and was by primarily with

We solidify are agent patients healthcare with serve. of PSMA further providers to the choice efforts they fully committed in the PYLARIFY imaging and our as

forward quarter contribution Second, momentum in gives DEFINITY's and our confidence us the continued franchise. recovery steady moving growth throughout and the Microbubble of

is it continue objective. year. more towards made information throughout portfolio for look advance you And objectives. progress was forward an to we initiatives the active this I these to us about strategically with Finally, sharing that with that the important our quarter

Lantheus recent a team a play than to this stellar more interim With previous and my will questions, take open Baylor-Henry thrilled and of GE experience, proven affairs we great my Dr. the fight chief welcome month, were science a positions represented our to outcomes. Jean-Claude helping industry current medical like go March, Provost leadership critical the and including XX strategic and life In the now with take resume to Pfizer, the I leader regulatory Merck-Serono, the a to follow added the Earlier vision execute moment officer. please years Lantheus be add expertise Healthcare, highlight to complement deliver Board to find, at I'd your team. Minnie board I ahead. we to ready patient directors call Bayer, will a With Directors. business of of has that, additions, She's Bob, role are as in on by to expertise. the Jean-Claude to to and leadership Paul Minnie Lantheus two better Before to Operator, questions. mini one to board. one disease

Operator

first our And Truist. Rich line Instructions]. [Operator from with question Newitter coming the of

Richard Newitter

suppose, Maybe of that guidance, the cadence contemplation which into off I the gets about kind that it's to Bob, Fantastic estimate roughly Congrats. you increased specifically, of there start was can this penetration your on the about here. to quarters? what remaining I get at to how you think do talk if significantly, would we through number? PYLARIFY Anne, that of bit how to $XXX spread out? guidance to million use that? is revenue and Is And the between a of just that's number. the the end? million just the at think about factors range? about How spread right should could low the $XXX TAM year? approach we – hoping, midpoint end evenly you My Do What range? arrive therapeutic we expanded the Mary kind in quarter little – you get why talk Why the high the of to is would And you us any contemplated

Mary Anne Heino

you've still PYLARIFY. are own But as I'll to get And think range. they're how kind touched on our of still with getting We're it. go. And we're market some is from in what I monitoring adopting of more a launch. thrilled then with signs numbers. and This start, Rich. to All feedback detailed seeing. We're we're Bob a can

there. that. anecdotal continue the that we are PYLARIFY noted, monitor with to has the factors of events the us we intent to, other to you increase The market and as the led see of the what so, is the use factor in Pluvicto the TAM, approval events. a events, adoption some was the of along And And around market further. certainly But

I'm tell you three $XXX the not the in I that pool I'll jump your do sure would So, next what into spread dive with Bob but financial I evenly there. and to model. quarters, over million won't let But other

Robert Marshall Jr.

seems somewhat out end were to sitting how One, were month just in are by month Every than still terms the remarks of ramp. in more be But the at scripted continue last. we my rates laid the here much month-by-month of purposeful a we look to we that I months month. better is many April, guess at to where exit I comments. This there's go.

forward, consistent So, performance. words for use expectations we that as the I we about thought going encompassed

And think the far. Qs is are half what we first with do, the X we as throughout get continued year, QX math. seen by So, words, can QX of to of to sort we've we continue consistent to the in I what in to, fashion managed to and continue the either then the that the i.e. continue X, expect we to towards the said, other of grow will deliver because we're the continue as – half in competition, second be already we that see to low implications that we've if that range. add were through of higher to market would would same or you that thus balance so able was yes, end If PMF knowing the just X, than penetration,

from a perspective, which Novartis from million full-year thing mind into other just consideration that thing, agreement. takes is keep the year a the that $XX not in The PYLARIFY now full number

think to that you but a your number $XXX in that's one-time as So, million well. million that's as model, embedded through number, $XXX

Richard Newitter

But importantly, PYLARIFY number? the not embedded in

Robert Marshall Jr.

you that that the have assuming use and Anne, Mary some on was market. that you of think, are Congratulations part incremental there. update to But there Pluvicto will approval I some SNMMI the post that guide, contribution you're suggested in market? And the contemplated in that contribution access No. assuming you

Mary Anne Heino

therapeutics. holistically very we're I'm saying, PSMA Richard, consideration comfortable agents targeted What that will really other be PYLARIFY included for comfortable PSMA and the in

remarks, And the short SNMMI with noted as already guidelines, a NCCN guidelines guidelines update also briefly in out practice, within our expect that consider come of to As period. imaging patient for specifically for targeted TAM, the I from include infer our PSMA meant not specifically that guide contribution infer updated total the that the you but we will selection contribution the believe when or that. market as did I PSMA consideration, that those wasn't that. as their holistically considering addressable increased both our include agents trying to We note and in from But sets we numbers have therapeutics. We to our numbers. well we

Richard Newitter

And squeeze if upfront? that one efforts any timing collaboration of would be clinical Novartis I you more, just these with XXXX updates, on could we that in some helpful. Anything expect or updates or highlighted that can

Mary Anne Heino

conducted we versus All the critical revenue use as use PSMA under late clinical scripted when trials have therapeutic commercial I'm really not of well be and differentiate point, is refer this stage transparent in of we all because the to certainly in At driving our that refer for established are PYLARIFY that. source normally, volume. we've mentioned, use. what's will a been will targeted sure tried market, being those that to if again, not But, PyL it's guides. PYLARIFY is that fall about that – so but here, And to we we remarks

commercial medical Our being revenue driven guides are use. for being uptake the by are

Operator

from with coming question And Danielle Antalffy of SVB our Leerink. line next the

Danielle Antalffy

PYLARIFY it on is, what of any run, or what color have will next front sort to you not on could beyond to preview really but, really going XX? might May asking XX about we Day, Mary we to Congrats within then And about one sentiments. what we you hearing. way the follow-up. expect And Richard's I another are the as quarter. we be look to ahead echo have we question product what's Is one portfolio Anne, Analyst Any I current talk should on May the if know I amazing I indication? there's guess hear existing

Mary Anne Heino

in as isotopes, have the the is May We've XX the a Lantheus' is with kind knock a rationale be through take these be healthcare. time or therapeutically, it's products, strategy forefront being Novartis' to approval them on that. now be therapeutic now, our we and really it's intent first now Pluvicto. understand That our truly therapies and to audience that help exciting very of diagnostically for day life we It's a embraced our seen really radioligand call going are as everyone side. of really or of whether first to company for what and is sciences approval exciting with – how will in how

innovation in have PYLARIFY from speaks how last the approval cancer, we the come. welcomed speaks We PYLARIFY I think which of to there's to uptake – to, really of believe, the year, this is prostate and more

the day us. And light so, – topics, that's some hoping hoping among share Day our that's we're really with shed will other what on analysts the what the for help we're Investor and for will investors who

Danielle Antalffy

the TAM. obviously, around going XX% you're follow-up XX% be Based billion. of $XXX the to guidance, be $X.X going of was somewhere on less to your the XX%, on my guess but, penetrated. I million,

guess for stay for tuned May next I what's So, PYLARIFY? XX?

Mary Anne Heino

keep come. and you I would stay eager tuned really to

Danielle Antalffy

of sort – what growth we state product [Technical is Difficulty] once what COVID and is mirror rearview know in this color you in on steady that not can – you the way you way here? you have DEFINITY quantify just do have been sure guys for can is sort we're be question. I given tough any But past. COVID could this any – thinking you I once has as more should if the best one impact I'm and of a

Robert Marshall Jr.

and over start kick I'll it then to I'll Paul.

fact, went through. I we like rebounding volumes quarter. in said, from But would was a were be And perspective, less, in flat a maybe saw robust growth rate My we in prior than just it the the it from So, on what that that numbers was of even guidance we some impact X.X% based seeing. early encompasses we as slightly expected.

digit, note, I our so, previously though expecting digit low-double state didn't view the sense intact, be would high-single remains think what noted specifically, I And for of still we it had even DEFINITY I as that of full in growth. year the

go lift And is X so, where that, are rates be X at that Qs we robust X, to we then and to that as going we're QX. means from in here what through up

So, trajectory. about current Paul? very confident remain its we

Paul Blanchfield

we physicians' in hospitalizations, be As course ability case If mentioned, the look Januarys, did product. we promoting quarter. Bob see and counts at we all-time over at to detailing steady highs in improvement and hospitals of impacted which the our and COVID were offices, the

would turn in saw in-person we hospitalizations we And in as low course coming staffing and customer increased Naturally, counts the expect activity, low. base. quarter. we have As our that activity, quarter, meaning we believe overall saw over and to continue cases promotional hospitalizations momentum the second and remain the the greater of significant utilization saw reduce to monitoring we continue but situation, into remain we we

Operator

And from Wiener question coming from Jefferies. line next of Zach the our

Zach Wiener

on another quarter. great Congrats

PYLARIFY, the second products Just of on there's to other these coming for two the half. about should the we think in speak you Can landscape second competitive market just the year to products coming with how to half market? the

Mary Anne Heino

can the think start Mary or Bob Anne. competition goes Paul question the best. market. I'll welcome we and then this turn to over Zack, into we is where We

there awareness a out is PSMA availability seen There's market. patients. TAM, we've PET to It's of market. the around built this still the a As growing imaging large with be

almost, PET there, imaging are leading confident the it's out us, awareness. we not to have that with but creating good to said there. market, Having for that of us others comments will to that. be we've intent So, that sense, agent Paul results continued absolutely the additional that, post news and in PSMA clear, we in to to it that the over I'll turn only for remain with choice have our it's that helping

Paul Blanchfield

gallium-based always Mary Anne what to months. XX be and contemplated prostate we've imaging advantage focused have that voice to echo additional PSMA that imaging represent for enhance PET raise said, and available and market raise third imaging good The a a remain confident agent competitive and fourth approvals agent do would a of thing is is We that, we recent the isotope F going the awareness. we PYLARIFY the think two significant We as be that the thrilled forward. awareness the and right? to marketplace modality able for almost continue PSMA PET I distribution with out in lead would first the to execution to approved for been match on going to that commercially PSMA given PSMA think cancer to dynamics competition. marketplace only having XX relatively imaging patients, remain We've better new that scale we're US I PET

the community. welcome of PSMA remain interest. continue in imaging turn, We're and, excited that and we confident PET can options remain therapeutic continued diagnostic opportunities in the the about expanding also incredibly choice we to So,

Zach Wiener

areas, covered, that is PMF to One the last now I the the XX% with know comment that I think is percentage covered, the but thought? more country from increased population on moving of you that growth add the high and more about usage. of slow, but cyclotrons ended density number, the you that will that just to the country Is away drive talking continue year will additional side. [indiscernible] you're

Paul Blanchfield

that. take can So, I

geographic highlighted. and we of covered to continue right, to will PYLARIFY coverage. the patients coverage I our vast to of we XX add have continue the So, expand US majority Columbia. I be the think have patients as in District treated to already That addition said, in PMF

a network significant we have so, And that there. covers already distribution

continuing access also access we focused but going lives on when customers combined progress, on with the think our we ensuring increase forward. XX% do and penetration breadth new add of and PYLARIFY, a to I basis, that depth the where market covered to regular that remain we of have

to think supporting we add capacity, using to and new continue will customers focus say I will and redundancy, right adding that PYLARIFY. it's will and we on add So, we

Zach Wiener

can like? in O-US And if potentially – some the that what on through landscape one comments give just timeline PYLARIFY sneak you more partnership. and looks I on could I in it's know a

Mary Anne Heino

appreciation Zach, can can't a through because that to three say is to speak partnership. for is their actually EU, in it before as Europe – agents. is the remember intent are PSMA-based the which confidently launch, and our I for company. And in market they our from can't fact, for comments the There EU. timeline imaging I phase I folks offer modality other PSMA for the is the and the PSMA-based the product other the guidelines reflected in before in guidelines preference agents. the PET with use partner US, in may bring over management I Europe preferred in medical cancer of PET guidelines agents diagnosis reflected in to as here market it can the a the imaging patients. the in major imaging say prostate modalities the Curium is specific EU

a our I look but forward can't specific for partners, So, offer to look, we them. timeline support that, we

Zach Wiener

Congrats on quarter. the

Operator

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

Lawrence Solow

is, question. I much is the on echo well couple gallium-based a to up I I they've answer market, really that my today But of little And guess a will traditional guess Axumin, you gains taking want the competitive just based can some market even other scans, though your part imaging I the agent. PyL your share first have come know have of from maybe most this share agents? like – PET follow F are been out competition on have my you landscape. I if fluorine as CAT quick ultrasounds. look question it are like It on XX having I from also the competition sort What more feels doesn't question seem second side. congratulations. XX of don't been to don't Or from perhaps approved. get you're taking the the know – But nearest is we how the

Mary Anne Heino

that with we historically talk all of of inclusive about image it's clear so the been modalities, had all whether is it's – what those cancer for so we has used been and we've say of talk PYLARIFY, when instead I Just prostate modalities we're that is TAM look about When to have across we or that to about that used talking fair patients. patients, the success everyone, think scans PYLARIFY at when modalities.

But the just them, I physicians, the specific the compare PYLARIFY to intent quantify. you Now, kind and I prostate share them. to from derive one previously other extent it's been each – look had that of to image modalities of cancer, of for at all every think what has it of if if you uptake can't taken used fair to that say

Paul Blanchfield

to were I if on… expand think I

Mary Anne Heino

Paul add to a wants there. comment

Paul Blanchfield

the I May. from received think that think of PET for we're share as so, PET non-PSMA specifically that all we a taking from you is importantly, the marketplace in non-PSMA recurrent I within this imaging metastatic last those referenced. imaging think, population. think share as the indication new taking of I we But Right? modalities, previous indication And modalities, as well

PSMA And choice. expanding taking so, about And been share, marketplace. the addressable the has total it's this see, but increase about market as most as importantly agent of the to can you continues

PYLARIFY continue important We the as and as stress share to to well marketplace advantages this to build modality the of take specifically.

Lawrence Solow

of when My is gallium-based enter it second of there. – on XX at on the question was, when some just seem the the So, that could superior? be you backburner their seem guys. the supply – sort a of with F have Do you outlook better term F [Technical But those perhaps sort compete in winded long another Difficulty] perhaps with brief that market. sort potentially does competition of issues, part near to XX like least of

Mary Anne Heino

was there, would noted F offered. review into another it phase completes, is in comments the a your since under were aware development. not To which submission it which another what our X that before we are to product require we're still would And be offered will Larry. priority based it of anticipate There the novel after program, its XX category, knowledge, is it's that well entrance FDA. We

So, see at anytime from a XXXX, at anticipate I that in we would don't least. think agent we that timeline perspective, all

Lawrence Solow

I've got question for Bob. a

the and strip – to $XXX think compare outlook Just you all, kind if because, on just Novartis, QX you you the guidance, did that of $XX guidance, if sequentially, of million from obviously, million strategic $XXX and specifically, out great like not the hairs, sort we million on split but you mentioned just I said.

quarter and guidance is, what, numbers. to $XXX million is million $XXX And and $X.XX, midpoint use $X.XX. your next round So, like, just

higher any there margin Or like should I or down – cost is there reason a is anything? of going little looks So, kind that? bit, decipher how

Robert Marshall Jr.

of things. in OpEx higher aspect costs It's the slightly actually

funds expenses start So, to one, have mentioned to letting we're the in collaboration really be we Paul we QX. have. – of Those kind that

ramping Our is investments, ERP more here QX well. as in that

think I provided margin gross sustainable. is number we So, the that

technology expectations. But the that And we important think workflow DEFINITY go as but thought for that see of then continue modeling, through And to efficiencies ourselves we PYLARIFY both advancements year, to according for our we'll you slightly was see you should have continuing forward and and more company higher so, grow as set during that to purposeful term. drop investment. from continuing, longer can particularly we levels to to the growth was drive up the also that help drive to

Lawrence Solow

sense. discretionary like investments XXX% drive to Sounds growth. future It makes

can a bit Just last expect on mention anything I you've, in I the give terms And sold room of every temperature both. question, in-house you quarterly but manufacturing? to quarter, of you I any think, update updates DEFINITY little don't or on the know two? those

Mary Anne Heino

are I facility. As now on-campus from my remarks, shipping we our offered Larry, in

say, I've manufacturer. Billerica our both now as facility a original two. information well formulation of, as from DEFINITY somewhat noted our offer is intent for two From sourced it's formulations our So RT the continuously, not on supply perspective, our the contract out chain break as and specifics from to longstanding to

out choice Our our to offering for customers of formulation. is

are I those to their marketplace. execute We the detailed our continuing as in split of we'll that leave products at we said, to customers. And will with the future in it I information any anticipate be point on the don't use offering of choice.

Operator

question have Rich a from with Newitter we follow-up Truist. And Instructions]. [Operator

Richard Newitter

prospects passthrough kind in on you amending moving transitional as is that modifying for for PYLARIFY. that then sitting FIND radiopharmaceuticals, for on in or also, to I pricing right just Is The or coming updates all for when? comment legislation Act, views Congress And expected? wanted any that can ask all? and there potentially at I of Or on believe now, just through

Mary Anne Heino

it expect say I pricing is will to where be. we

certainly which be. like I name we The is As you It forward. it Act, but be. to KIND to is that. It The actual okay it we The am sharing move FIND I Act, know, would don't pricing expect speak But to with Act. the continues On FIND specifically, where

want with We know, to add don't I to progress to on support. support We continue specifics any you and we that. add our continue additional add to if work advocacy with comments see Paul, there.

Paul Blanchfield

be you This organization, is sponsorship. as Act House on the been Senate affairs and with the support aware, for government and an our involvement may introduced active the now both The source has of bipartisan FIND of significant floor

would then to we so, will forward. that that to on coming CMS become going year. ensure the a the And innovative or months for dynamics that And reimburse hopeful impact are continues have this radiopharmaceuticals passthrough in law notable

Richard Newitter

follow-up that, just Paul. I could If on

let's away and how of just and done what through is the goes impacts with, it say what are that market? that the for it does you and mechanics passthrough traditional price So, and does what

Paul Blanchfield

We are me But talking be more going Day. let Investor this to here. information provide on about more some

in First it's hospital think to payment and the foremost, I traditional applies dynamic that only as important outpatient a payment to understand segment. Medicare passthrough

imaging and when XX%. having you increasing whether whether we've of alternative for freestanding about Advantage is they're minority cancer. that also payers, to rise treated expect is a or you are you And the so, years number share that that they population and really when seen sites of and note the the almost facilities in Medicare is centers government be prostate coming that think commercial being patient the of think about When care,

actually So is and care a through of in the patient around their quarter a population. their It's minority. population insurers the site that of

the in I that important XX year, is overstate not is end Act hospitals. payment so, way. And if is of Medicare there a is do then at the outpatient traditional what the you is or Medicare But I passed, does hospital a then clock, adjusted. to don't any strictly impact would for coverage This from impact This importance. payment want not three payments The CMS will, month to if FIND think

going passthrough ends The the about not the continue in desire speak use construct. novel Act I'm current hospital influenced to a radiopharmaceuticals so, even passage of specific the to financials positively And But to their after FIND system. of could

Operator

I'll Mary Instructions]. call closing turn to the any remarks. Anne back [Operator for

Mary Anne Heino

on on will remind well you for everyone, us we you, to May Lantheus our including Yes, of XX the like thank members today's inaugural be webcasting as joining management call. Investor that Day myself where team franchises I what leaders our key our as see think concludes in-depth and well for as an I strategy. and overall opinion will financial my cancer Microbubble prostate remarks is as of business that we'll provide today. review And would

Operator

our and ladies you, That for you conclude your Thank gentlemen. conference for today. does Thank participation.

You may now disconnect.

Lantheus (LNTH) 29 Apr 222022 Q1 Earnings call transcript