Earnings call transcript Q4 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Lantheus Fourth Year and Full Year 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 recorded for replay purposes. A replay of the webcast will be available on the Investors section of the company's website approximately two hours after the completion of the call and will be archived for at least 30 days.

call Investor your Relations. the Vice Mark turn of President now over host, to Kinarney, I'll Mark?

Mark Kinarney

conference on Thank Officer. Chief Lantheus' Heino, Chief full results Financial fourth and our quarter With you good Bob Paul and year morning. President and Officer; XXXX Marshall, Mary and call Operating are today's Welcome CEO; to call. Anne me our financial our Blanchfield,

operational and Anne Paul XXXX will Anne begin an Bob Mary call to turn to then call over guidance. closing for with our remarks the cover the and the then introductory provide provide will financial will update. will and open we Q&A. remarks call results provide Mary

Form we which quarter press release, fourth issued results. the and was full morning year Securities a reporting Commission X-K, XXXX our to This under furnished and Exchange

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

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

Before indicated I those comments and note results from like materially of as we you get change these results risks update a forward-looking due assume a required of may differ discussion to uncertainties. for variety if Difficulty]. detailed Please these no that remind would this to our Please [Technical during risks even and started, forward-looking Actual statements I by uncertainties. by that our refer to or statements, obligation law, materially. except applicable expectations to actual future SEC filings

measures included the our the measures. of call during of these this financial also website. measures discussions to on financial directly GAAP will most Reconciliation section include non-GAAP certain Investors comparable Also, is

the now my is Anne. to to With Mary that, turn call over it pleasure

Mary Anne Heino

joining morning XXXX Thank to today's year banner us you, call. Mark, for Lantheus. and on good a was everyone

results strategic XXX executing year announced who outstanding of the work at and morning, we employees plan. been against the Our fourth our nearly this reflect full Lantheus, that quarter have

we leader. serve, growth, we and to position category the our investments portfolio to purposeful and markets continued diversified our have a disciplined With attention accelerated as Lantheus

fulfill to alone. deliver better to Importantly, XXXX impacted fight lives patients million that in continue I'm mission X we and to the find, than we our of patient And proud more incredibly outcomes. follow disease

Our performance earnings revenues, flow. per with was and simply outstanding, XXXX in record share cash

As XXX S&P the level, Index a value of result S&P enterprise the were creation MidCap we October. from XXX at in elevated to SmallCap the

versus We PSMA number solidified be PYLARIFY to the both key category as its with PSMA continue the Pet for PET one leader our the position competition. market share agent products. commanding with

cancer. XXXX, XX of we by expanded XX% facilities thrilled choice in more manufacturing our XXX,XXX prostate centers, an of PMFs, contracted our academic agent and PYLARIFY Over of is Most lives targeted in PET PSMA with coverage to XXXX. XXX% ensure activating to of PET PYLARIFY the the access additional over than or PSMA capacity PYLARIFY having patients importantly, course with in achieved we report covered are to imaging with PET with was used scans manufacturing

Last market. be the in application for XXnd drug supplemental we FDA our one on-campus February, new to agent an continues enhancing facility. year number the ultrasound its DEFINITY manufacturing received on approval for

follow line This mission to opportunity choice as the DEFINITY exams. our inventory fight was to facility disease, in supply the agent expansion, we with important XXXX, and million into supply echocardiography again, progressively this margin optionality of in And provides for three from us include chain. approximately manufacturing find, patient chain and our

applications. franchise. in collaboration are announced our the been fourth being in imaging In strategic an other used additional microbubble cardiac have instrumental now we for years Microbubbles quarter, and for

have microbubble cause dedicated vector company our combine We in through gene therapy technology partner important its to Our of treating potential and diseases root delivery biotechnology agents development. be non-viral the we enhancing will with the of therapy human genetic ultrasound excited are delivery several this to newest payloads SonoThera, improve to believe tissue part by innovative to gene applications. a of microbubble treatment therapy genetic enhancing the

an our with out portfolio. respect also building year exciting was to XXXX

We in non-small with our candidates, assessment prostate PD-LX our progress our two NM-XX, reported for therapeutic; cancer. development novel agent XXXX invest lung expression and of continue to product imaging under pipeline currently and cancer I-XXX our of PSMA-targeted in the cell

will trial we For year their for one Phase ARROW patients II for prostate patient cancer, XXXX, the metastatic efficacy all for in treatment after our first who enrolled castration-resistant be with endpoints. last followed

began NM-XX, For enrolling and we IIa trial in Phase patients initiated May. a PELICAN,

our current our also advancing announced recently expanded strategic assets, in-licenses we to with addition In pipeline pipeline acquisition. and a

December, POINT Biopharma, rights, from therapeutic two licensed candidates worldwide certain exclusive excluding PNTXXXX for product we In PNTXXXX. and territories

leader enhance radio will experience, product supply with healthcare which the positioned revenue we and Lantheus. distribution we isotopes and with in radiopharmaceuticals potential growth chain earnings candidates, are As commercial two well-established infrastructure the of the significant longstanding extensive stakeholders these commercial believe potential unlock hospitals, uniquely a and relevant long-term for and to relationships

PNTXXXX lutetium where is targeted tumors. a already therapy gastroenteropancreatic had metastatic significant radioligand a for receptor PNTXXXX prostate is cancer. neuroendocrine areas in Lantheus markets therapy with are unmet late-stage will need Both radioligand a therapeutic if PSMA-targeted candidates lutetium with for that address product presence. somatostatin based and approved, non-carrier added

United to FDA-approved one which PSMA pheochromocytoma the number which franchise, and in imaging radioligand is radio currently for the will PNTXXXX paraganglioma, our only cancer offerings prostate expand rare therapeutic Lantheus' the neuroendocrine pharmaceutical are by tumors. agent allow beyond PYLARIFY, broadens AZEDRA, therapy States. PNTXXXX PET anchored us

into specifically from Cerveau radiopharmaceutical leverages our our also The acquisition in This pharma diagnostics services announced asset called MK-XXXX to acquired our We neurodegenerative is targets and recently a Technologies. as PET Alzheimer's has of aid diseases. offerings expands Cerveau and well informing that as It products and stage treatment in tangles F potential imaging for staging response agent clinical disease. diagnosing XX PET in acquisition novel Alzheimer's disease. Tau therapy to the expertise selection

and companies around Alzheimer's more development. pharmaceutical XX under for more being world therapeutic hosted currently candidates the used industry academic is by clinical disease MK-XXXX than than XX trials in late-stage

the and global disease of this afflicted in is progression adoption monitoring even agent greater to for and goal its Alzheimer's trials patients. use Our the MK-XXXX as preferred of progress identifying expanded biomarker presence for clinical in

Finally two assets our of in XXXX milestones. important partnered reached

XX to the brings in the one in who partner available XX imaging their first PSMA is commercially step promise Agency marketing Europe Medicines Our based the submitted closer bring of seeking to to for June F Curium approval. Europe. PET PSMA for authorization PET application agent potential men F based This European

radiopharmaceutical diagnostic co-primary endpoints and based that partner as endpoint In as detecting well sensitivity addition as last coronary of met myocardial our with the artery flurpiridaz X of imaging. a PET clinical flurpiridaz to jointly for of the specificity diagnostic demonstrating we Healthcare perfusion efficacy fall trial compared GE Phase SPECT secondary higher F announced disease key XX

made progress As the and you our on are accelerate to to our process shareholders. leader In XXXX, Lantheus we've committed markets we patients, can value position portfolio -- our compete. deliver in continuing see mentioned our and strategy growth as customers, the just employees significant highlights in which we I from diversify to category a to

turn our Paul key I'll the on that, for update operational now products. to an over call With

Paul Blanchfield

you morning Thank everyone. good and Mary Anne,

of year a was significant progress. XXXX mentioned, Anne Mary As

diagnostic agent leading As PSMA we the community. solidified the PET US PET for as market with imaging PSMA cancer prostate PYLARIFY

well continued market. overall PSMA Our as PET growth of fourth imaging the quarter leadership results market as demonstrated impressive

has on prostate with lives living men impact pleased cancer. PYLARIFY the are success We made the of it and with

over sales PYLARIFY patient quarter. from generated PYLARIFY quarter scans third full fourth of up the the XXXX XXXX. nearly XXX,XXX $XXX.X net sequentially of reflects This $XXX.X for year with PSMA million million, with employing PET revenues XX% in

that launch focused second brand of including and half access in prostate since we X,XXX of on of our on activating of manage clinically satisfaction the healthcare of cancer has majority our PYLARIFY, promotional focused much lives have XXXX our the effort ensuring PMF the patients. to XX% vast demand with PSMA network PYLARIFY efforts PET driving awareness While covered to professionals

We efforts delivered existing XX% growth sequential the nearly believe majority as of our have of been driven have quarterly growth accounts. with by promotional effective we

throughout the customers, quarter. add addition performance In continue to we existing to new within strong accounts

pleased TAM perspective, results PSMA the imaging that updated research significant be of was Last primary SEER agents underlying to recently a our powered database. customers. the of we the trends analyzing the after from demand across ordering with statistically for and Overall, new completed of PET month, the are updated both existing and range results and we the

incidence changes, These to There billion, which estimate. we scans patient of TAM average of consideration radioligand a approximately two are therapy revised in expect and for revised and suspected per a up or prevalence $X.X translate with patient $X.X X% prior selection. X% going with namely, recurrence into for increase to from an number billion areas updated considerations specific our the and forward

from scans, the for annual at market potential of current to As now of end up imaging at previous activated our a be XXX,XXX our estimate end XX XX from annual with demand the we PSMA we the sites the expand increase up support To of XXX,XXX sites could believe to PMF result, network for continue PET XXXX, an PYLARIFY, scans. XXXX.

out-the-door half in facilities continue added well additional to and us on-time, network. a our serve flexibility as boxes, second we additional XXXX, enhancements as synthesis manufacturing for adding full customers of in These breadth, XXXX. rate such provide time at existing to the These made XX% geographic to as optionality operational additions our enabled of

our customers. excellence that deliver to we this of believe We operational our all strive to demonstrates

to U.S. and PET us significant continue PSMA for one the cancer remains PET believe about in PYLARIFY PSMA potential with prostate grow is be community. of the launch ensure to the PYLARIFY excited and reception We number the and agent there imaging to-date market

was number market agent, able Switching we in DEFINITY to the one XXXX dynamics. to and which our navigating grow while microbubble ultrasound-enhancing business, year were a remain

differentiation, to than distribution than team. dedicated business U.S. share our supporting continue success greater DEFINITY maintaining quarter, ultrasound-enhancing We and be agent of while and X% grew drivers the sales our in publications the clinical market. fourth more data of Our XX% model,

financial will to update. now turn call the over Bob, a for I

Bob Marshall

year Paul you, good on and provide unless results, of Thank focusing noted. highlights morning quarter fourth otherwise I full financials adjusted and will the everyone.

million, quarter, of the XXX.X% quarter. quarter to year the was the over fourth Turning revenue $XXX.X increase for prior an

the full Novartis XXXX. was year And for $XXX.X in the of QX with number Revenue prior settlement of includes an year reminder, period. over million, million $XX increase XXX.X% a full this year the as

from over XXXX DEFINITY to diagnostics. the was Sales prior million X.X% of year closed higher Now out the the million an turning higher quarter. of prior million, quarter. year. compared to of Revenue were prior allowances sales, X.X% DEFINITY of $XX.X $XX.X precision net increase $XXX rebates as details, year X.X% with and the of with beginning net

$XX.X from challenges. chain supply to prior million opportunistic in net competitive TechneLite from the stemming XX.X% year $X.X million, revenue approximately quarter due was up sales

prior the year. $XX.X total million $XX.X XXXX, contributed million performance, opportunistic year sales which full from During TechneLite's down was approximately of X.X%

and As million, Total modeling for reminder we excuse these and the beginning at businesses were products sales end $X.X the gallium our XXXX in which XXXX, the a thallium third at -- for of not of purposes in will repeat XXXX. -- exited quarter. me the

prior of million. AZEDRA year and sequential oncology continued the Paul Radiopharmaceutical $X.X contributed the million million Full the on in $XXX in year-over-year growth the $X.X $XXX.X as sales XXX.X% sales earlier. quarter, and year quarter year XXXX. of full the contributed sales noted million attributable to up quarter with PYLARIFY by flat $XXX.X from in million the of totaled

quarter, was $X.X royalty. million, partnerships the from primarily RELISTOR up prior Lastly, by revenue the year other strategic X.X% and driven

an with fourth For settlement million. the the $XX.X of quarter Novartis, XX.X increase was the for percentage profit points. full Gross revenue including XX.X%, margin was year

margin quarter sequentially the mix fourth XXXX the product third and PYLARIFY, unfavorable gross profit DEFINITY a increased on Over similar TechneLite. basis, quarter from of from

well efforts rate previously revenue and within points year the investment XX.X% reflect Operating support increases XX.X in to net Increases percentage addition expenses sales prior and were guided and favorable medical in of commercial, in and ongoing research, as and research over sales at operations headcount of market spending XX.X% travel activities. marketing in levels. development the as

expense is expense million remains investing the our tax and our XXX part Other a $X improved basis a uncertain and revenue at on in $X.X of ERP income or rate project, in the the a while settlement UTPs which which million positions result of our swap, interest quarter, a points in G&A net resulted by of expense release target. as gain. interest portion of offset percentage of of in

amortization, of profit is was Operating the of prior $XXX.X or taxes. stock Total $XXX Of increase over million XXX% $X.X the million expense non-cash quarter $X.X and amount period in intangible year. same and million an associated adjustments plans quarter acquired with the respectively. before incentive for million totaled and expense of this

relating consummate R&D the $X.X agreements. Also million [Technical expense to Biopharma together license to the the quarter agreements we Difficultly] in related POINT with of with costs

in receivables by by The company nonrecurring $X.X other reduced and related liabilities remainder integration increased to contingent expenses. quarter. the million is and $X.X million acquisition, contingent Further the

quarter. rate tax was effective Our XX.X% in the

During portion of acquired other released XXXX as the back quarter, on another and a newly provisions, our we through income benefit sales dating information, provision to tax from the an our based expense which as underlying tax influence are ETR period. income, we net the XX.X%. was ETR effective BMS The year net the for result indemnified. distort full rate The does not does for fully UTP but or

$X.XX an profit full of GAAP On per $X.XX fourth share was period. basis, a basis, net prior basis, million fully income $XX.X an earnings $X.XX of from an share was increase the prior of fully GAAP diluted and and on an XXX.X% a on basis, profit $X.XX prior increase of reported over resulting and million year of $XXX.X quarter year. loss a The increase earnings diluted for of loss of were a the of the adjusted adjusted for over year XXX.X%. fourth adjusted the the per profit a a quarter an year a XXX.X% on of profit an

increase turning as as totaled year we expenditures cash flat the cash from Fourth cash Free operating the quarter million, flow Capital million, which less expenditures define $X.X with million, prior $XXX.X period. flow. capital quarter. flow essentially QX million flow to cash $XX.X $XXX.X in to million was $XX.X Now year operating totaled prior XXXX. of an compared

offset company accelerating cash growth the flows revenue to part levered significant prudent by addition investment, financing P&L of in In free in several a by driven actioned activities.

borrowing a C settlement XX.X% increasing carry of share the refinanced $XXX notes million fourth a The to the interest remaining convertible rate During net loan fixed term the a million quarter, conversion $XXX instrument company into and premium. revolving issued with facility newly refinanced credit senior A X.XXX% or capacity notes. the coupon

$XX concurrent $XXX. a variable Also above the current the with million the POINT agreements effective mid- to the believe paid options debt that two below Together million candidates company the rate the top license price remains repurchase, will capital Biopharma market interest during share share for growth double-digit help and in long-term. $XXX PNTXXXX, to we sustain product accordance PNTXXXX quarter, line with in

million. restricted Taken equivalents, cash stand together at cash of now cash $XXX.X and net

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

impact approximately transaction I'd estimate the to partnerships turning EPS will Now its full to like acquisition of to million consolidated MK-XXXX radiopharmaceutical Tau strategic reflect other business a guidance the and our to take XXXX. on booked Services be revenue We within moment company, before for for financials. latest Pharma adjusted will neutral how the contribute $XX for and and of our our Cerveau year diagnostic

We become also next to the to beginning expect the deal company accretive year.

revenue that $X.XX Additionally, EPS and in repeat million XXXX like of booked which $XX XXXX. in for in comparative reiterate purposes will year-over-year settlement I not would to QX with Novartis for a adjusted we of

full for as year to quarter. now as first well guidance the XXXX Turning

We growth the though a $XXX full with single-digit double-digit robust solid PYLARIFY to year. remain prior for comparables. to higher in year $XXX due forecast supported in for growth mid to the expect of by for to favorable million the earlier DEFINITY full million year of range year, We PYLARIFY be growth

we billion in contributors, XXXX to XX% settlement. increase to estimate Novartis revenue XX% full be Taken approximately over other range an to the together to of of the ex XX% $X.XX with XX% revenue and billion, year $X.XX

of PMF investment margin continued profit conjunction ahead be network. in For modeling purposes, expanding in XXXX gross should the incrementally with

well at million over that will development and a added and as and our approximately percentage anticipate as incorporates increase agreements we higher both revenue associated be marketing sales with to associated XX%. the funding investment Cerveau expenses and the This with as activities XXXX operating additional for acquired Biopharma research business. collaboration POINT million of $XX of – continue $XX approximately expenses We

Also investments, the sales and growth is the and development research to support future. marketing base and notably business incremental will the focused in within expect fuel the company and have experiencing

over as those year, are last I noted the expenses G&A, and have this implementation item. ERP in we of in Lastly are the project our captured phase line within

our Interest will adjusted diluted to approximately earnings XX.X%. current normalize be range fully to now tax structure expect be $X.XX of the for of and rate should reflective capital we expense full to the per share Therefore, the in year, $X.XX.

be Fully earnings $XXX For million to quarter providing not $X.XX. which net be the of quarter, adjusted first of I million. are diluted specific way range given to estimate. should informed range of product in views per the $X.XX in the that will be two-thirds the should this we has a through $XXX share revenue

purposes, $XX taking throughout generally the million modeling range year. should XXXX year and with million spread diluted approximately shares the concurrently the amortization be consideration after and depreciation to Fully outstanding into a convertible offering. for repurchase Lastly respectively, share be full should executed XX million million XX evenly notes $XX for in of

let back Anne. me turn that the to call With Mary over

Mary Anne Heino

future. we the our XXXX generating our company. fund And our deliver a to We and priorities we our shareholders. will cash for beyond believe Bob. XXXX can fund capital strong continue EPS healthcare ensure PYLARIFY professionals we the with We have Lantheus. revenue continued leader. you, both quarter the executed year activity established with line year. tremendous M&A Thank growth for priorities and significantly strategic category can we for the ensures to to directly was PET and structure flow exceeded the We patients, as the free serve are also and in plans for strategic firmly and targets and PSMA the that We the into a value

Lantheus' is fight possible. Lantheus my commitment outcomes. not would to closing, every find, of employees and thank they day have better every patient advance tirelessly follow to to none second simply to one The I'd significant and to disease employees achievements like whom our and of each work without In deliver purpose been

Paul now With questions. Operator, please I go ahead. are take and that your Bob, ready to

Operator

you. Thank moment [Operator question. first our One for Instructions]

Newitter from Truist. question first Our with comes Richard

is open. Your line

Richard Newitter

Hi. Thanks for taking questions. the

Mary Anne Heino

morning, Good Rich.

Richard Newitter

a Congrats great on I you? here. are finish How year Hi. the to couple here. a have

TAM First curious once the you step-up previously $X.X for detail off Analyst just TAM. Thank you to I'm there what the for starting expansion indications billion. billion drove in at your radioligand also you just maybe Day, identified some think the on future. incremental with opportunity I therapies the $X.X pre-chemo get had from

you range. one in somewhere million that I had had patient quantified $XXX think assumed I the scans think or $XXX million per there. you And X.X scan

we I'm $XXX is you're to trying And that could where way that just approvals to the the to $X.X scans curious, patients? to sense incremental TAM increasing updated? million add-on I'm just get a headed billion to about is once still the kind that get there. of your million given potential $XXX you be the right think for

Paul Blanchfield

Rich Yes. the thanks for question.

Mary Anne Heino

Yes.

You that know going go pop over Rich, ahead to I'm what -- Paul.

Paul Blanchfield

I'll Rich, Rich this. question. this is Paul. for take Thanks the

recap, at is That to number we're last in per of billion. as were we $X.X we TAM practice as inclusive billion. about year January So only medical a seeing highlighted clinical what well guidelines of the and just as $X.X updated We scans current in to patient. label of

year other and second that the last well was we favorable prostate potential, but as highlighted intermediate you're words an line Day community. patient education the pre-chemo selection What was setting, first the addition for Investor correct, XXX,XXX in of for scans, for May into potential the the both $XXX in $XXX approximately, as cancer initial advancement million had to million at incremental in

for guidelines accordingly, a incremental our approved. that's TAM would new so updated indications potential that therapeutics we update And were PSMA were when or

inclusive indications prevalence just X% at additional forward. point So would this billion new and and growth to upside going addition recognize those and $X.X not in to regular X% update approvals in in the as are incidence

Richard Newitter

that that get was or And per million given to million indications, I to Okay. million increased $XXX clarify to X a your patient scan more to for scans you've to on to X.X existing kind also assume be as there $XXX for on it scan $XXX it could think just though, your assumptions million patient? fair thereabouts of higher per patient the $XXX those is assumptions and floor or just that indications,

Paul Blanchfield

But that What would we we to continues last say be. naturally practice practice come didn't would market don't was that to be. numbers practice your would and we on fair was guidelines physician it's medical evolve. research inform with those then. medical what May based is January, reassess to assumption out appropriate update think But think what certainly In where I shared and I incorrect.

Richard Newitter

I improvement where market your for healthy you you if Okay. double-digit at exiting see nice $XXX And XXXX and if midpoint the as you sequential what assumptions changes the comment And million the if million guess midpoint? what through any $X.X growth. are of bit next then billion that just could on, $XXX in could and the PYLARIFY on guidance, a landscape maybe are cadence I'm on little for market year. on curious penetration your year. also, comment you're into the competitive based share factored And the moving

Mary Anne Heino

indications candidate, first, physician Rich, within that you're adoption PYLARIFY but But areas what's in can folks only address TAM. offer, it different to continues we – just but expand new we or using there continue And that explain information potential across expect I'll in. of not I we either using in we'll us to be would which credibly then what therapeutic would additional more to is from it also with this that, continue will frequently. say, be awarded PSMA to to have our hearing fully PET from So, PYLARIFY market already indications, think as to pop update and the

cycle continue occur we to management outside as prostate throughout therapeutic indications cancer and or areas which of life update in something also that's And year. the expansion that expansion include not geographic does or look could we'll

we don't I – that we leave to impression But creating medical the want are practice.

see practice such brought adopting briefing how and are the We a it. by medical innovative are medical we practice to they to strong monitoring market having but influencing are product

guidance the any quarter. far question your Bob to when guidance first product-specific about this the appropriate of quarter it's year just for offering cadence was give rest the the mentioned, he not into as To for

I fair or to time, for be year. products. of think guidance we you'll our for as at well grow cadence-type any continue it's But specific end see as would to PYLARIFY products not say, other this the offering

Richard Newitter

one your in if guide contemplation and I color other just like could and And Thank contribution of for in those if expect in curious, you. from for squeeze we we from last in. revenue revenue And any should I'm $XX kind of you Cerveau potential sales areas one assumption royalty-driven How Great. Thank should Europe. product about the Flurpiridaz on revenue in Curium there is this contribution think year. the is the of any for revenues guide? the if million or some PYLARIFY XXXX? there contribution of

Mary Anne Heino

that process not you Yeah, for going if you the we've what you flurpiridaz, lead both revenue back approval seeing to for in royalty either by would XXXX. I to would general offered or forgive pronunciation. timelines for Healthcare us think, look the for anticipate And to I'm product what as GE at any

revenue partnership For – use the the with piflupolastat our Pharma Services in do clinical of rest of we trials. book for

is our into PYLARIFY So up rolled number. that

I would not course to aside any other potentially this And you a our or the asking purposely not have time direct explicit pure you model about, at Bob which been try revenue. fairly of to from stream which for model or we're is rest royalty it separate So of it. RELISTOR, has partnerships

Richard Newitter

you. Thank

Operator

question. our moment One you. next for Thank

comes next the line Anthony with from question of Mizuho. Petrone Our

open. is line Your

Anthony Petrone

And the and today. the congratulations a strong to name acquisition where we ago back build-out Thanks. are year years just of – on covering going Progenics the as

TAM Maybe Paul on the So $X.X expansion, congratulations one to billion. the team.

Richard's we also testing intensity questions, with some up hormone Just a to therapy. intensity about think we seeing follow-up are testing picked you that when actually

there. radioligand We different. number is I also each therapy the therapies for slightly have of think scans And in

then So it monitored then going when about hormone Is couple a How with have patients with therapy sort is therapy? we with does think radioligand? of it intense more Thanks. spread PYLARIFY, follow-ups. how of being play actually And out? that I'll and into

Mary Anne Heino

Sure.

start monitoring to us turn because and these are market how So be the products. want to again embracing we in Paul clear I'm going going to I'm continue then to I that to is

Our indications of pending Radioligand therapies. therapy uses approval additional additional put the aside Radioligand or in potential

indications prostate really cancer cover treatment its the spectrum two Our and in do full of men.

other for seems NCCN However, professional how practice what practice emerging these are bodies so be out you yourself like is opinion that is be guidelines in regimens SNMMI similar true. use products what you we encapsulating their it as And that there that and put different the and to to when used. as should say

value PSMA Our specifically physicians continue is to learn where for the imaging and imaging for with PYLARIFY.

practices to and practice which generated expect those solidified I'll science has our see enough medical get changes there. spoken When practice into enough physicians. then the We say loudly has guidelines, then become guidelines for

skill. give-and-take a of bit a it's So

you going on now are therapy, So that not mentioned to specifically hormone usage for rest therapy I'm for that. our assuming we within purposes

parts undergoing annually. But patients Radioligand will it at to using to of those therapies. that approved say broad information the for application estimating scans yes because I But continues practice [Audio least to-date those therapy are X.X on we patients per and the other are Gap] very evolve evolve. our this patient continues In

Paul Blanchfield

add maybe Anne would Mary said. I everything just just in. add Yes, agree in Anthony, to Mary -- with Anne

courses research we're speak. We are this be third-party assess how be a four and what range six a many to therapeutic certainly how scans mentioned across on depending is out as how course there physicians think using assessing oncologists imaging or market, radiation is the PSMA there's to going and used specifically thorough courses. of oncologists, letting you PET Anne Mary they're could the I treatment mentioned whether PYLARIFY, how for market therapy Radioligand a as conducted market urologists,

had where is less that The out realization on of year. practice in clinical early in for estimates evolving. still Radioligand current that the therapeutics only rolled market we're PSMA a marketplace We've a but PET very the we after than

we And the have to But going continue today. third-party so nothing market the to we'll to significantly practice we there's seen through to could see said guidelines say, and see evolve. medical enough it a there still approvals when is we've X.X FDA guidelines medical number to incidence we've or we research. when practice that when and and the forward. going through total indications new update increase that What of say merely suffice prevalence And continue grant we change, of see already patients substantive will evolve TAM addressable additional

Anthony Petrone

Very I'll helpful. in. quick hop Two follow-ups. back

market is coming of investors any We in Maybe two over a this does can get competitive secure market can update How that. So going the later year. forward? And from update today. to on the initiative competitors questions if on congratulations. on you often PYLARIFY just an play one the competitive for out the competitor just is on that another landscape. provide you quite J-code There's Again -- time? dynamics,

Mary Anne Heino

start is because Thanks, do turn We And before. and to additional way Anthony. market over we is have to voice But the the to welcome I'll grown. needs more best I again. this and that have I'll this activity in competitors raised market we've Paul into new more be to it then think this and said that a market.

F the of market. with We presence in commanding the look player also will and PYLARIFY. Earth into Blue will based our I to year, that the market products general on in the But that, forward later come having continue -- to entrance referring just said would other product regulatory sure the can category into timelines. you're XX to we another this may market having say, the the I'm hold market leader as Now,

view as very commanding it remain We there? -- view in market. with that in I that different PYLARIFY because intend markets, to want to we to prepared As market. anything it add we in the you happens those do be in leader and many our intend ways, Paul, for said, however, that we

Paul Blanchfield

that, Yes. Thanks, Mary Anne. I would echo Anthony.

I is, market in sustain leaders market, go that to you've think, history aim Lantheus that a seen as the of leadership. we in and us market into when we to aim we be

breadth, now out-the-door advantage I ability and the mention half look out PYLARIFY, our the with not we PMF we to network With first-mover believe at different. advantageous geographic appropriate of think a When anything think on-time is XXXX. of that's sustainable in XX% don't and manufacturing build second what we full XX, times, to and significant

and that contracting year XX% on we've to access board. market early to able been the the at to We look look coverage unable of lives. being achieve covered our at customers of that we're We last do bring able

lastly, seeing I you're commercial into of then, results physicians. out do demand of to excellence by go educating being the our to out And think the generate marketplace and --

incredibly think, I the bread markets. these butter that's really what does Lantheus well of and in

able would And be continue. that so, expect we to to

expect anticipate competition. And mentioned, as we Mary and Anne we

PET to think whereas we would and can We expect Anne continue leader in out that leadership continue be fourth and market continue. that that we to to believe quarter, the saw the we PSMA had Mary play we in we mentioned, commanding

believe we Now, J-code eventual and we presume, question, this pass-through. current There's transform we the with Act, to I which of on trade associations passages new a earlier status. about would supporting think in the is transitional around of pass-through, the point pass-through a that reintroduction the broader number Congress your which are comment, of regards more FIND that in to things

mentioned, by J-codes CMS updating, to scans, continue for different they potential you work they they out or categories what and marketplace how break group regulators and as the whether We interpret, CT holistically. group and really with PET on

then, number also to commercial we our available us, levers advantage. of believe mention, a to not And there's first-mover

for on this continue continue can we all to of and market expand come. And ensure working we're years that to those many can to be we that to so, leaders

Anthony Petrone

you. Thank

Operator

with Roanna And next you. from Securities. SVB Ruiz our Thank question comes

is now Your open. line

Roanna Ruiz

everyone. morning, good Hey,

So of a -- couple questions on

Mary Anne Heino

morning. Good

Roanna Ruiz

the Good any And PYLARIFY you this among you fourth saw A questions quarter, to used Pluvicto. sort are that determine of couple PYLARIFY. level that on to of demand-driven pent-up eligibility the coming for on it's hospitals growth particularly in about in through segment patients demand of sensing year? up where ask to read wanted morning. might I Pluvicto getting

Mary Anne Heino

answer let Paul that. I'll

Paul Blanchfield

Happy Anne. to, Mary

quarter, think to additional accounts HCPs So That's fourth question. I the saw for meaning majority PYLARIFY third demand but growth, we're that growth I seeing think either existing you One, nearly from we where scans. the me two the comment, quarter referring of generation. referrals from increasing XX% parts coming as and or sequential, heard new

refer regard PYLARIFY to the right PSMA apologize. of choice. those able where types to imaging, expect of raise be imaging were middle the majority awareness being to could and account, we mentioned, who adding really your patient PYLARIFY imaging centers keynote to last agent With for clarify the a to to from to question? we've so, as are And receive of come since you then growth the on continue new PET to I -- our we the second right year,

Roanna Ruiz

sort with the requiring any of Pluvicto therapy just scans I curious read-through demand if to positive for was radioligand from PYLARIFY. there's

Paul Blanchfield

I appreciate Thank the you. clarification.

our as to patients So indication, recurring, overall it. which across encompass sometimes we those prior call initial well as as current both see as or I therapy definitive selection would we think as growth patient well staging, the as in broad are

I still the coming at the stages think market. early into of we're Pluvicto,

can You public Novartis' refer to comments.

into what single being versus back think you the approved therapy marketplace, market regard still treated its digit, the to in with when as patients seeing But total the of number and size I we're with today, kind that the radioligand are of in realizations. the total we're

And back you at less what TAM, I the as PSMA-targeted in currently XX% for was refer it than indicated. therapy, annual so, radioligand of to potential our looked we scan is if

over that other But populations as settings, expands, grow the think into overall Now date, time. question impact. and the of relatively pre-chemo we be earlier but small, into more to or a grow impact to have that it can that view those optimistic I meaningful

Roanna Ruiz

Super, any first that it. Got to comparisons should ahead, dynamics we we quarter? trends Yes. I And in or the any quarter can happened to, what looking there And first check consider seasonality PYLARIFY payer make last for wanted are year? just into helpful.

Mary Anne Heino

something have and third any product we yet, enough may quarter. just don't that the seasonality that seasonality So, date, and in the we but [Technical It's span not identified Difficulty] PYLARIFY. specifically identified in have past we about but talked But, we that's not with not have have trends. that any to be history DEFINITY we mainly associated with with second the have it

Roanna Ruiz

progressing it. And really and sort US. benefit in the depths that well the more and Okay. Got that for could from reaching I Do you're just as coverage wanted most, the capacity with you're expansion redundancy across US.? areas into to of check, you more of the PMF think how

Mary Anne Heino

then this -- So, had capacity, the XX already that half XXXX, address is ideal to and full Having and XXXX purposeful. network was. used completely we to demand back ensure of wherever it

and -- to selective, look to permanently. capacity on either out site. down it tweaking, additional double have we Now serve, all us that and we be single we get of behooves or of to doing or now in double see physicians the sites patients down be and behooves full is additional have and the where kind capacity will This

Paul Blanchfield

it's add our Mary customers on When build-out, Anne, remarks. commented I and serving just to and my that at XX It's this breadth, around point. we at of things three in maybe XX in PMF prepared we're look to around really states. geographic

So plan we capacity. build across breadth, We've still good are markets. few on feel Northern still if the about out on geographic and to the pylarify.com, a map very additional There you Central marketplace. we our noted, Florida, look

are and significantly. really the is, lever and with PET centers piece around morning, and PET grown key second PYLARIFY workflows their in this want the the think to afternoon. in PSMA have I late as PSMA PET Imaging to PSMA specifically PYLARIFY market, afternoon with scan, hospitals adjusting And is the times. out-the-door the

And so, there grow. customers to as XXX-minute half-life their continues with do the F half-life, meeting tweaking still continue meet needs given isotopes to as do have also continued of out about radio even evolve means, to to that they And and it's customers continue their XX we volume to having overall, evolve.

of XX% and And time full. believe able time, that's be We then half incredibly that meet to grow. with able second deliver market that's continue important continuing lastly, as seen we to the just do PYLARIFY customers to specifically think in And growing the customers. optionality, we've to in the already and overall needs our to demonstrates at that us over it on for adds important PSMA to as we're of XXXX,

Operator

question. Matt Thank next our you. next from comes Taylor Jefferies. One with for And question moment the

Your open. line is

Matt Taylor

good taking Thanks Hi, question morning. and for congrats. the

scans, about number about the for, I was question there in could of you considering could help TAM. first Do PYLARIFY differences be the what there? Could estimates any have you hoping, was the my specific think TAM think be for pricing? you might and be you So for PET PSMA there European us

Mary Anne Heino

Anne. Matt. is morning, Good Mary This

PET any imaging on guidance PSMA would time. for what We have not at be this offered TAM the European

at market, into not have then but their of our I we get are, that may it's are the that Curium again, expectations say what think it's just this actual to entry and fair we as closer to we to time. sight through offering partner line

Matt Taylor

advantages you year a then could Could to first-mover in coming follow-up, hold of the XX can What things done with that? I'd and like additional basically and agent in. another PYLARIFY competition as F solidify a you illustrated address a being down the of moats coming about you obviously are we up already XX in can that competitors? additional lot just your have you've of to you some you've think talk to how lot do have And that this and just a key between Okay. here I so you or know infrastructure. laying F

Mary Anne Heino

that to think that Paul. over I seen will I'll again I date. product and Matt, There physician prevalent of patient's images PYLARIFY. Healthcare is that which already serve. we essentially in larger it proposition very experience patient disease. and two is one turn a the with start -- we've the start past give product a patient DEFINITY. a had the is So similar, in lightly year two allows the and market again up part of is the positive this here it to -- was has yet with we But already to is an it There experience the decades DEFINITY. that example then for produces satisfaction the competitor the very what and We value physicians market not is from physician experience any don't GE competitor right That with XXnd and using That do huge the because for been preference interpreting bring

have force. to We the sales dedicated continue largest

that when And DEFINITY. decades scan. or has with as is satisfaction in tied something I that true ultrasound strong intent have an a PET they're Now a ensure is and That it for to now is what they performing to been think that it's either two PET true customers our our again customer need PSMA performing imaging moat.

As we happen that welcome patients have have that noise intend to that with and the describe market. reputation best more PET but The a the bring to we market we physicians I our that huge we proposition is and said earlier, imaging, this to into is now is for value to to and also innovation strong will thing do. brought This available competition. tied PSMA everything voice

Operator

you. Thank

Paul Blanchfield

just build just to These with bit the Maybe We've look been I you Anne we to the have number think market down this PMFs customer because out XX% well. meet teams of think We We achieve some able partners largest we've and one think XXXX. that times Lantheus access capabilities and a at PMF I to everything what to said. our with with preferred achieve really our able But through comes have needs noted of complicated do incredibly if reiterate larger takes the our of Mary we agree time. time that and We coverage. access access, that the demonstrates been specifically -- and are scale. nuanced markets. to appropriate we've our today what out-the-door I'll through out-the-door and previously does market not

which the of ensuring in. think going We demand the are forward. to that leadership we've to granted. We be Lantheus going coming serve daily academic And We're basis has time cancer differentiated maintain marketing we for about PSMA been amount do on, And where benefits PYLARIFY. understand a provides prevalence and take really don't the patients of be us PET reach what repeat of seen and with and differentiated think there physicians we we then and that stickiness on the to XXX% that to the of opportunity driving look full. ordering on I accounts able think at and execution customers to think for anything market an with out sales contracting prostate quickly quite focus able the

and forward. physicians not the we then they also on going level, to when and physicians we we believe And happening to only will confident physicians place leader not profile Naturally, we to change continue we that share speak going but feel forward. think a our this referring those we competitive the in going going the patient and about I'm to that's benefits position all differentiators that that other in opportunities management would that in about ensure and the clinical see more have are remain assess forward those But perspective. there's we a point. at from imaging

Operator

Thank you.

Our next question CJS comes Securities. from Larry with Solow

Your line now open. is

Larry Solow

a and Great. congratulations morning been covering Anthony's the I And good on on Thanks, good comments year. -- since you echo we've guys XXXX.

the So I it's on but more five time. my answered, been going look a mentioned out question are know improving marketing fun fun just PYLARIFY lot a just years forward, questions of another the building PMF out-the-door and and -- you years first I to forward. facilities efforts going efforts, guess forward promotional five

doctors there of maybe out areas Just great to to and expect? isn't you spending one in the -- regional marketing of are you're -- promotional where as are that about is as just more terms or what local out your doctors towards? reaching awareness reaching out where trying figure still local some spend might Just going

Mary Anne Heino

so just answer, the question, to a sitting turn going I'm to but he's question. one it for After ask Larry. here Paul to has [Technical and morning, Good going prepared Difficulty] no I'm to over favor. asked financial him then

Larry Solow

hit I'm Absolutely. question. with going him financial Bob. going Get up ready to a to I'm Bob. ask

Mary Anne Heino

much. so Thanks

Paul Blanchfield

and Thanks, Anne, thanks Mary Larry.

receive to hospitals the the we that you in could in As that they the in it XX really imaging the serve be set. call with I whole and contracting they could marketplace product through months what year to earlier, PMF time ensure we satisfy educating we of demand centers that and could frame order that to to first able up mentioned highlight setting ensure to used launch

we up patient physicians physicians perspective majority really to to benefits management from XXXX, that second second sales the they the promotional the understand make ensure to of of the in of prostate of half half a X,XXX-plus middle -- PET In in referring the classic and PYLARIFY. the year shifted focus the cancer marketing of our with PSMA

with results, highlighted XX% And we approximately it's still quarter-over-quarter, quarter. with with the is including And growth our XX% while were opportunities we've there's We've opportunity. TAM very as fourth we penetrated significant results to growth seen pleased billion of results $X.X what the are a forward. almost of sequential if the going competitive annualize

significant that patients. a using PYLARIFY prescribing are that patients of who cancer still PET are number there so aren't prostate of not number PSMA necessarily physicians physicians for their are a with see PYLARIFY. There all of And significant

to comments Lantheus that's even educate really And the we so, growth mentioned continue benefits of specifics, to is what Bob, of on portion before what Maybe the have sales for answer. and can that's marketing remain would to TAM to we well invest, piece, some I ensure I on overall we to as continued with does under And what PET but PYLARIFY greater the and there where of that don't out really this that's and the PSMA you can we see our that I referring do community, go come. the an any market leader. know on realize if what

Bob Marshall

to that. really nothing to Paul, add No, anything

Larry. So go ahead

Larry Solow

short-term impacted you've this in POINT more investments little on it I mentioned just that think brought pretty down. or Does that thought a also line, operating flattish is year I or -- be this which things, good more down the Maybe more -- I by under and it year a expense more guess this leveraging will and XX% this there -- lower piece is expense marketing of at 'XX just leverage that or leading is that Bob done in a even you The 'XX, on R&D least or feel. is or other sales to a just the bit line POINT is job quarter forward, in quarter. into the on that than or going thing you margins kind actually maybe

better really expenses how the go -- R&D? versus where are for And get year a to just SG&A POINT I'm trying up going next sits fills So, to there? in at outlook

Bob Marshall

Thanks, Larry.

So, expenses. looking it annualize those I guess operating to kind as kind take to instead is the and really of a best QX way of at it full year characterize of

it could well both, bridge going $XX readiness, what R&D so, million it we're neutral I and the we between sales and I and so forward marketing that work mean in will as it's collaboration, as million doing be And be. that effectively the if work $XX doing kind you if I piece where to going to will with be marketing mainly is is and to is sales POINT, R&D. of what to both from you spread in Cerveau, gave the earnings mean being and math between biggest

would year. expenses then R&D that also this We have expect we additional

that additional over what have expect to through do drive think you drive thus So expense we additional life of key $XX million our some far. will portfolio, products that seen as management of particularly you investments our cycle of approximately

higher The inflation merit in company. case prior little that fact supporting too investment and normal, it we made that other of see of parts than will in putting this really from which G&A, a growing sales are in the also little into we you decisions the piece the kind headcount. annualize XXXX are additional our bit around But years. different what another there's R&D, spread marketing well as amongst of as throughout And

that accounts to are that's the we of investment the sales, so And places majority supporting and I can areas be. just just will make grows. parts accounts where the that forth logistics point it like receivable, to payable, sure business as of

you in free decent generate is clearly as always goal can deliver certainly as can to continue And see as XXXX well that be really driving that able result. And we to by Our forward. will cash you a see the flows business levered to P&L. guidance profitability the quite are the

Operator

moment you. question. comes Yuan Riley. B. One next from for And Thank next our Zhi question our with

open. line now Your is

Yuan Zhi

acquisition the quarter. one Good into step our see Thank morning. on taking another CMS. questions. for to you of small great Cerveau Glad Congrats

about relative to positioning how of So the we amyloid-based imaging? think imaging Tau-based should

to though drug. The get latter the is approved, disease have hard coverage couple to Alzheimer's questions. time amyloid is even Then of directly related follow-up having a a CMS I

Mary Anne Heino

because seem So different you're scientific very more sure a the the can I I'm interchange. that, is being for if that application a answers predictive about would a question. Tau Alzheimer's there role common versus we're is not use that small progression distinguishing it loss think of of lack scientifically negative the stronger on take imaging understanding breadth the disease, our of of think but in right cognition and Tau But to like different we progression, currently I that's here -- both of that amyloid talking they're scientific loss in here imaging today mental plays -- functioning.

because but emerge determining so And then they whether images might significant is determining determinant aligning in our only Tau disease, their and they with patient's belief where more in responding to it's Cerveau importantly tangles strategic not a the MK-XXXX are for be choice important, they as status our of that in a therapeutic intervention. -- which are more clinically will more

Operator

Trading. moment Walsh from question Thank for Jones with you. comes One Justin the last

Your line is open. now

Justin Walsh

you're anticipate pile. is in congrats question invested my, PSMA-Targeted how all. the this the to, Obviously at therapeutic related the My Hi heavily radiopharmaceutical I'll you developing. market space add to point.

with on, out-licensed bear. Specifically, given landscape affect directly Pluvicto, XXXX PNTXXXX compete but next-generation that pipeline in about also I'm assets your PSMA the curious thoughts could the have to intended and LNTH PET you to iodine-XXX-based how actinium-XXX-based

Mary Anne Heino

Yes.

your you've answered because -- prevalence of we're think is approaches. ways you've seeing some question a seeing different in already right what I we're

cancer. signals a more have and based product radioligand this but of lutetium-based you the in it product in an actinium-based diseases what you the consideration you for have product, much an have case, is treatment prostate mainstream broadly acceptance Now therapies iodine-based

we've many this times is. broad patient about think how talked I population

stage in As and is studied patients. are first being introduction discovery typical very they with later

discovery products forward third continued think science with -- And as with applications oncologic earlier investment of terrific. in castration-resistant you we use with metastatic but these line have the do cancer that's see moving to post-metastatic into you lines. other So could good treatment

on to I still Difficulty] of we're to of might a understand precisely goal cancer the even because more Having is variety drugs think different trying which prostate determine patients the shots of [Technical kind important, genotype here

Paul Blanchfield

[ph] chat. the Disconnected

Operator

further questions in This program. time. the no are this there for Thank you gentlemen, and today's Ladies your participation conference. concludes at

now disconnect. day. Have You may a wonderful

Lantheus (LNTH) 23 Feb 232022 Q4 Earnings call transcript