Earnings call transcript Q1 2023

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Operator

Good morning. Welcome to the Lantheus First Quarter 2023 Financial Results Conference Call. This is your operator for today's call. [Operator Instructions] This call is being 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 President your of the Mark for turn Vice Kinarney, Investor now over host to today, I'll Relations. Mark?

Mark Kinarney

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

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

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

today's the presentation of find Investors section lantheus.com. and website can the release our in at slide You

that to measures I a a GAAP website. and to Please may Actual expectations results comments of comparable Investors section measures we SEC obligation actual any included even non-GAAP update made would during measures. except our this certain materially statements. Please financial directly Discussions law, detailed of to also assume or forward-looking as most note financial these for Reconciliation call these our differ if change during on materially. filings discussion due refer statements, remind uncertainties. from by to of by call forward-looking or required the risks future our is these and any the results no will uncertainties. could of include indicated risks applicable statements like include you that today commentary our variety those to

the now to call Anne. CEO, to pleasure Mary over my is our turn It

Mary Anne Heino

joining update morning on pleased the our of Thank to I and outstanding our state us. you, am Mark, business. you first quarter results and Today, good discuss to everyone

of to deliver than we million as share report and $X.XX. Find, I better results testament continued revenues adjusted patients, generated proud to During advance of a to with dedication am employees, our which and of to lives more focus X.X the we the million purpose Follow is record of patient quarterly per outcomes. Fight earnings first and disease XXXX, to the our we quarter impacted of $XXX

Our was continued and categories. respective both have DEFINITY, led growth impressive their first performance in the quarter of the continue market strong by which share PYLARIFY leading to

Our in our radiotherapeutic experience have business of to Technologies of market-leading our been of MK-XXXX, superior continue commercial and Biopharma including invest Together, fuel and to growth. created the patients, candidates of have lives shareholder of impacted DEFINITY enabled portfolio recently in-licensing customer will from late-stage value portfolio agent. and PET Alzheimer's us and disease clinical millions an of Lantheus of our imaging hallmarks the significant already to and and continue assets, PYLARIFY radiopharmaceutical product for POINT completed to the acquisition expand commercial Cerveau stage X tens

were designation or with mCRPC. programs about extremely are prostate pleased We as and for advancing Fast we to Most readiness. as partnership the making the excited to commercial in well castration-resistant regulatory the the clinical, metastatic progress granted and are PNTXXXX PNTXXXX, we PNTXXXX treatment manufacturing recently, announce FDA of cancer, and Track including our

the fill an review Fast that medical and conditions Track to facilitate process development drugs a to is the intended serious designed expedite new treat unmet of need.

approximately the treatment by for are the in U.S., men for as encouraged FDA's XX,XXX We every mCRPC. eligible are year decision

quickly our new which treatment the us will with PNTXXXX Importantly, patients to potential POINT to along FDA, has program, require difference to the this advance for make a partner designation the work options. closely allow meaningful with who

line progress, half the the of in XXXX. our anticipated second the including data sharing for top to trial readout PNTXXXX forward look We SPLASH

MK-XXXX well closed of as as disease and to in for therapies. acquisition, novel Alzheimer's targets Our of guide assets. recent in is clinical-stage tangles modifying to and XXXX, second-generation has MK-XXXX Technologies, which potential Alzheimer's that imaging added our PET tau treatment that first agent disease pipeline choices of the Cerveau most aid the staging a diagnosing quarter in

X of continue is we than in to by partnership. therapeutic Over used late-stage the more XX advance months, MK-XXXX under last clinical in more for utilization Alzheimer's and industry companies. pharmaceutical disease XX than candidates the academic being currently trials development development MK-XXXX clinical

Blanchfield scale Dan expanding to and of Chief recently Niedzwiecki scope Administrative promotions the our Paul and business, the With we to announced of Officer. President;

President. in launch with ideal has and notably function, leadership an person responsible been oversee operations PYLARIFY. leader strategic for patients as will very continue team. role, R&D aspects technical of this tenure, and role includes strong commitment medical Lantheus quality In excellence manufacturing all and which and of to and joined XXXX Paul be and for His company's will the he we the our our now commercial, Paul the successful of the demonstrating most serve skills, exemplary throughout to his positions

to Dan grow. functions, Counsel oversee Dan and been and serve transformed Secretary. joined XXXX several as critical in role, critical been has be key will to his His has resources executive and that human to will including continue as communications. will corporate intellectual the property, Lantheus invaluable Dan team now has member continues a a of also Corporate contribution our In legal, and expanded Lantheus. compliance, Lantheus continue General

strategic call Lantheus over now the the portfolio, to key and will commercial Paul I to share an initiatives. on pipeline turn update

Paul Blanchfield

the as to I honored President opportunity And radiopharmaceutical future the Thank morning, the you, good the and whole. Anne, am have I'm industry Lantheus excited a about everyone. to role. take on Mary of and

is to and approved According and XXXX fueled growth the with market radiopharmaceuticals. and patients billion $XX to by treated to in over billion products, global of increasing $X by number diagnosed radiopharmaceutical expand third-party both approvals, the currently XXXX, most from diagnostic reports, notably of expected new research the therapeutic,

positioned the be shape to a uniquely going cancer of is Radiopharmaceuticals this in midst and in lead considered Lantheus and to industry renaissance innovations are are forward. disruptive therapy.

focused honed over the our more companies We through further commercial demonstrate our are years. one world we've which manufacturing, and and leadership our chain products, the than radiopharmaceutical in XX supply expertise, market-leading and pipeline diversified of largest

expansion Our success growth category and the exemplified that pipeline, innovation of is showcases our a radiopharmaceutical by truly potential. oncology exciting recent

partnership additional radiotherapeutics POINT track Our puts X us our the our in next us acquisition Biopharma oncology, and years it, Alzheimer's the the of and few to launch MK-XXXX into with Cerveau diagnostic potentially on to pipeline, moves recent of most market. addition

radiopharmaceutical We industry. future about of are the excited the

Our regulatory, reliable serve. we to differentiated in will patients the enable and the of to development, families lives lead, commercialization supply and improve continue most and importantly, Lantheus capabilities

of established PET imaging quarter sequential agent representing market-leading with PSMA PYLARIFY year-over-year with the firmly XX% fourth sales and as the of $XXX.X Switching to first an from operational update. million, PSMA PET growth XXXX. quarter growth remains XXX%

cancer near need the customer we of prostate key in second PYLARIFY's the the significant As continue experience. and to approval, in our FDA for the our innovation best-in-class unmet drivers be market, anniversary community success PYLARIFY's

accounts, our physicians PET The our growth on was penetration to and promotional XX% brand referring sequential increase awareness efforts achieved driven increased PYLARIFY. with existing by PSMA through focus continued in of

modest sequential of new selling to versus at additional accounts, a and the price XXXX growth taken prior contributing increase day was an quarter. addition the beginning the of Also

and most first reliability, Puerto including time our the of of Arkansas. in capacity we geographic Rico reach, and out-the-door to flexibility notably manufacturing quarter, and activation Northern course new the also Florida, the facilities, Over continue increase PET

our DEFINITY year. $XX.X from the up business, first sales For were for quarter million, microbubble XX% the prior

are as the ultrasound-enhancing choice the market. remains solid #X with this We pleased performance in DEFINITY agent

impact and which During the expect office from patient of an second our in XXXX. the we visits, the quarter, to we half benefited increasing continue programs of in-person number of

with accounts from programs. particular made that educational our benefited specific have inroads, in and have promotional We

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

Bob Marshall

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

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

revenue meaningfully with from sales significantly quarter up category to $XXX.X quarter. contributed PYLARIFY's radiopharmaceutical million to $X.X AZEDRA fourth turn adoption. sequentially oncology. beginning in million the of the I'll growth the Now the up and The and details, continued year-over-year sales, contributed due of of

up as million regulatory $X year. net $XX.X allowances, of $XX.X were XX% from Sales of and included DEFINITY, diagnostics payment compared XX.X% prior to higher the distribution million, China a from and Double-Crane. the Precision milestone prior million, rebates recorded our quarter year partner,

grew exceeding this our payment, XX.X%, initial Excluding DEFINITY expectations.

comparison from included that TechneLite prior XXXX. not net repeated a first quarter $XX opportunistic million, due revenue mainly of down sales in was to quarter, the year X.X% the

other biomarker newly driven $X Lastly, was royalty million acquired strategic of RELISTOR revenue also imaging $X.X partnership but the by primarily MK-XXXX. and sales the from included tau million,

from revenue the Novartis repeated prior comparable year a $XX reminder, the this contained license million year. not As

basis. increase points margin quarter result profit XX.X%, over the quarter Gross a first basis was the an similar XXX first for XXXX of on

in the increase As and costs. the case labor material has volume recent offset to by and mainly led in DEFINITY, PYLARIFY product by been part and mix favorable is quarters, higher due

favorable which clinical basis guided, lower over net year prior of than by at expenditure. Operating is and the points R&D XXX revenue both lower expenses driven were revenue, previously XX.X% higher

and within our sales expansion as an well PYLARIFY dedicated G&A. and support with our ERP efforts in of marketing sales intended invest project expand to to as continue PYLARIFY We adoption force

the we the decided plans life that due for the impacted now pursuing like I changes AZEDRA quarter, in value. and has note AZEDRA management market evolved financial book business the case opportunity, now would to to late in to cycle discontinue which

note impairment the R&D asset goods the within or expense charge of within million $XXX.X financials, million GAAP found of the Within is of reported cost you assets $XX.X and analysis. embedded taken the The IP of intangible is R&D line. have charge the sold group, we currently for the marketed reflective within asset AZEDRA charge required that will

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

just contingent million. for The impairment adjustments, and liability for recorded nonrecurring Also, to asset as mentioned, remainder I intangible an we AZEDRA other charge acquisition expenses. net have related group is the $XXX.X

an prior XX.X% Our resulting net rate was income effective $XXX.X the for on basis, year of was $X.X first adjusted an XX.X% tax quarter and over million for the quarter. The net reported quarter. the million increase of loss

were over GAAP earnings on an quarter. a the of an adjusted of increase of $X.XX prior and $X.XX basis, loss share diluted per earnings fully year XX.X%

cash flow. to turning Now

$XXX.X in expenditures, of million was $XX.X First less totaled Free $XX.X as million operating operating expenditures in expectations. with Capital flow totaled capital cash define cash million, to line flow over we $XX.X increase year period. million the flow, an quarter which as cash compared XXXX. million, $X.X QX prior

and Cash assets. quarter, During restricted equivalents invested at cash largely to we acquire Cerveau $XXX.X the million, stands million. now net $XX.X of the cash

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

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

As as year, $XXX million. take And the quarter performance. noted, while at now digits million first on into model strength, view we will to full DEFINITY DEFINITY to first consideration to its year quarter now for which build are double our average digits in to expect updating such, high full low single we we grow PYLARIFY PYLARIFY on $XXX and

range revenue year prior of from full to $X.XX be $X.XX forecast now $X.XX billion billion. a to billion of billion the to in we range $X.XX Therefore,

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

estimates. year versus We our to adjusted of range adjusted prior raising $X.XX. the of full increased EPS to in now are range revenue $X.XX account per for share EPS $X.XX to to We expect $X.XX be the the

timing net in of to a Importantly, balance year. modeling expenses hiring expect revenue activity, we range of operating in lower-than-expected the of despite prior but to to be and guidance, XX% for expenses purposes, for the to QX of in the closer XX% due

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

Mary Anne Heino

team Lantheus towards to and the make our significant you, progress strategic goals. continues Thank summary, Bob. In vision

better quarter of team families our result patient first a purpose patients to excellent is the passionate performance Fight are for deliver serve. Find, and outcomes and motivated Our we who to Follow by our disease

over both the industry focused of and one positioning largest are We are portfolio as of and with of high recognized to pipeline. a a radiopharmaceutical and innovative the be forefront the at months. on progress the coming potential ourselves in to you proud our and our world commercial companies the radiopharmaceuticals We efforts forward look renaissance reporting updating leader an

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

Operator

Petrone the first Anthony Mizuho Our Instructions] from [Operator question Securities. of from comes line

Anthony Petrone

Utah the comments, strong another the here I'm Paul, Again, congratulations XQ, Florida, PMF intrigued result. by sites.

X You sites, new PET facilities. opened manufacturing

on and Maybe just many hospitals guidance. sites those bit can are little how be? on in how X large have to a I'll impactful those And were PMFs, how volumes one their networks follow-up

Paul Blanchfield

question, the for Anthony. Thanks

we've network, highlighted, PMF flexibility need well as our where we So to we optionality for expanded as and customer base. the additional our as do see continue expand geographies for

have so more Florida, demographics naturally, large recently in expanded which the a given relatively We market. is

We have the supply able to the past, been various PMFs. through in including market sustainably other Florida means

addition updated those of reach customers. able to flexibility closer out-the-door the PMFs transportation for of to allowed But times, be

area. number specifically not commented have We on the hospitals that in of catchment

to that experience flexibility we further PET imaging and our PMF to the network consistent market. leadership PSMA to best-in-class the expanding in specifically cement deliver our and with customer is continue ensure optionality But strategy

Anthony Petrone

And almost for at end, $XXX number midpoint, PYLARIFY by I the million the That's PYLARIFY, looks $XX raised upper ahead $XXX was it million. million helpful. of guess, here, right like math, on but the guidance million. by $XX then And our at north on certainly

continued the acceleration. is for So outlook certainly,

of And the on activations, volumes a PYLARIFY. complexion the the maybe bridge bit growing on range new is maybe that What site a we so just on of mentioned and a little price? Certainly, number. a have guidance on here. bit bit You are price the bridge just for Congratulations. gain little little

Bob Marshall

in. we helped look-forward Paul, here to a about on looking when talk has you in So and jump From sat I'll think as extremely about February start, ahead, Anthony, an And inform basis. had and we're March. we is that way strong it then the the then strength can I to

of look half price Paul strength. first the the versus modest that at through handful But it obviously, mean, price balance I continues the of the factors. are When a increase there really I continuation second half, roll of has a noted, -- year. the to that is

in I look of like something looking half, as half, high midpoint end, the first second XX% a at sort second XX% high half I'm of that first growth. somewhere sort growth half, But of is at -- on sequential

is, to the and I of we've the in of about important the doses as things that's go-forward note One on other of cadence think on learned Thanksgiving, into July about holiday what terms basis Christmas. holidays that forecast. sequential we a Day, thought terms I'm do have impacted I things those -- doses. weeks, And have Memorial of by think, weekly talking like Those the all X, Labor but impact numbers an Day, kinds in cooked been

Paul Blanchfield

just Maybe I’ll add.

So increase activity, as shared a was through believe result activity which existing new mentioned. primarily XX% lesser prepared modest price accounts, efforts growth and penetration my but continued promotional increased contributing, the is we adding in within our I achieved with in physician also the that sequential referring I to remarks, extent, a accounts, a of

increase believe trends across and and is deliver to cancer to that that value while price we our the And we I don’t with patients to discuss continue consistent professionals aligned pricing strategies, health prostate specifically care note our would landscape. we the market

Operator

question from Securities. next Our Richard Truist comes from Newitter

Richard Newitter

outstanding to second. Congrats quarter. -- one I'm more PYLARIFY, you maybe on a be wanted break actually, on sure another plenty a there'll from give questions for that I

the digits. double DEFINITY expect to maybe I to but a there, year outlook had quarter. appreciate Just that you improving. It the solid in one-timer still you like was back this standout be sounds for

assumed is I is double-digit guide for of one a follow-up. And to DEFINITY? from that love on And grower your kind then if sustainable Would had think you just hear here -- in what's out? this

Paul Blanchfield

question. Thanks, Rich, the for

through of to the staffing to enabled in new to and been mollified be largely the and we've level the quarters the that in have we normal. about them handle that of indeed due lingering of remainder have we've number sustained a the improving increase I years regard in talked that first entered really saw hospital with constraints think which So we some expect of for last patient last With DEFINITY, to couple volumes, would year. the efficiencies quarter

a dynamic terms you spiking, hit we Alpha quarter, first Omicron was of quarter in different in impact we first of where, XXXX, few in of patient saw also visits similar and recall, the than last as think an in variant the to it's very XXXX. years, the saw the I

add see patient so over think continued will to DEFINITY I'll growth we Bob growth And support continued anything. we and going leadership be to to forward. wants it to able sustained turn

Bob Marshall

part that just to probably, out if also was adoption Yes. noting, of really the to on Rich, team was due to point I and year driving it then last importantly, in performance, evolved able just different continue easier an the drive sort year's and year and that more the year, concerns get in-person Paul But mean, comp. to the But early where I strength. first last of building the of programs on growth, was as was as the reflects COVID utilization. half mainly sales

low that So being an it's that year accumulated exceeded. point to it the has year effort the average -- to been benefits I the terms we on sales with into is and really the the reflected year. of said for balance expectation of the comfortable single-digit what I for just came forward with think And balance in double-digit the of we high to that now the feel of

Mary Anne Heino

both we as their been think, and a here. say the a seen, rising normal I comment and And But had And sure procedure for returning a well, is has returned last of, tide. been there just X years. that which DEFINITY. And science true also with have negatively that life theme impacted is earnings, have tide, for the volumes I’m absolutely to normal. sector I’ll you course, been I’d to final of returning. reports of have patient kind is I Rich, consistent add back think as one a It

Operator

from Our SVB next call Ruiz comes from Roanna Securities.

Roanna Ruiz

me. most patient are seeing was you And on patient are assumptions PYLARIFY there segments? any curious, updates one where quick a for the new for So scan guidance? per different I across PYLARIFY given growth your the

Paul Blanchfield

Thanks for the question, Roanna.

as we $X.X market, prostate imaging TAM So or patients addressable updated to PET January, agents XXXX we be our in or in an shared TAM, where the on PSMA provide update XXX,XXX for we cancer, approximately billion. did total

We have formally updated not that number.

guidelines. in note evolution I have we would However, specifically continued seen

Association for And at we And so Urology imaging. reinforcing scanning a would a among to monitor the benefits of guidelines as PSMA to of need what to the to prostate for also recommendation disease preference further monitor patients’ the American an with example, update, cancer advanced updated intervals, recently sequential XX-month X their disease. progression PSMA call progression imaging and PET other

oncologists where in are I PET across a seeing think refer both, referring we activated PSMA growth benefits urologists, further terms radiation to to patient by all we’ve with of PET PSMA specific oncologists PYLARIFY. patients PYLARIFY. physicians, In of increasing turn, continuing driven them accounts, are and seeing seeing take we we’re where with with the understand to existing segments growth, And

say, we would seen patient the ramp-up, earlier end a for I had at selection. think this year year, I radioligand of therapy last and specifically

some with at beginning patients, temper. across adding be naturally they March not new we’ve have But Although that seen growth overall, the seen the of would Novartis’ announcement that board. growth of we

Operator

Matt Taylor from Jefferies.

Matt Taylor

on start following thread. to up by going that I'm

I mentioned market change you -- research, lot guidelines. you of do wondering was the and a the I Paul, So know in

last patient. think for and came update I was per assumptions, so the recurrence scans of or see your X.X to One key

would world. little and scans recurrence And grow in the that that here radioligand be to expected bit more the I evolve group, you'd in expect per in see real guess to to patient future, therapy able a for now you how with

Paul Blanchfield

for Matt. the thanks So question,

I a is from right? we’ve we in So I what total certainly number some of addressable the shared, of suggest see that pieces, expansion think mentioned, would room for you as which market

therefore, First more medical scanned frequency scans with comfortable, become patients new and regularly more into practice their that are would as baseline. of be with the of the expansion PSMA PYLARIFY becomes PET physicians

continue we evolve. see do so And that to to

update or months frequency. those X in see it’s PYLARIFY note, But an numbers further a we embedded PET PSMA X upside with we too soon, shared the after from probably marketplace. would update I becomes scan as to further do

first over the together which with as potential would POINT. we’ve think radioligand approvals, patients to our second that be applicability would set you therapy, into monitored we’re and for upstream an highlighted the referenced therapy additional including partner piece I assessed create be of with of and second PNTXXXX, further radioligand addition time. over line who need for developing was That their well time, as

not And who will evolve continue the the scanning. as that frequency number know, of of be impact patients we only could potentially to see scanned, and but so you

is is within finally, we potential further currently favorable, then also And with population, for to in the not evolution being see regard specifically the staging explored. which guidelines, intermediate but

space. I think cancer see for years for naturally that continue over the PSMA to in prostate to imaging continue in States overall, coming PET market And so PSMA runway significant the the in we, and lead meaningfully with PET PYLARIFY United grow to to

Operator

next from Our Yuan comes B. question from Riley. Zhi

Yuan Zhi

for solid quarter. Congrats another

centers, many using centers, are versus more value feedbacks and follow-up Can using question. and are why can a in PYLARIFY us imagine And PYLARIFY? the remind Then imaging that from PYLARIFY competitor's they imaging hearing what's the the they So what both doctors you you have are are of I ILLUCCIX? proposition ILLUCCIX. we

Mary Anne Heino

I imaging market's XX% cancer had marketplace, we about the out PET itself imaging at estimate answer mentioned we have by start and PYLARIFY prostate for the what that what question. believe And is had we to think saying quarter which not there believe But PSMA in testament I'd think and share the best for as the and is this might the we marketplace, I last Happy choice specifically. folks patients. we look we we product to think share when of

done need that is key times ones at about build XX agents. patient product we I isotope. the the advantages the much really with to isotope think not that need, with here. available we've large-scale built to Pan-America other of then able point the network, PMF as what And of the suited to we've and we've matches work see PYLARIFY meet of about but versus our geographically, choice We've talked which this is F an the profile better as the many And that been out network one out. population I production, this think only

also that is We clearer [indiscernible] leads spoken sensitive certainly that targeting think say, disease. again, our and I'll underlying stronger well. and images of more choices think market about it specific the to the as are to that has And that I

Yuan Zhi

And Paul, in long the provide how Lantheus on long-term, Do there is to a radiotherapeutic diagnostics. to higher in more growth updated you you Can potential thought wants late-stage an play for term? assets? radiotherapeutics maybe than us the in-license intend

Paul Blanchfield

market, about say the incredibly we're of prepared including therapeutics my as diagnostics. I would I radiopharmaceutical the remarks, future potential and in shared excited

now, PNTXXXX POINT the for a assets second We prostate two with PNTXXXX therapeutic incredibly in development exciting space, have cancer neuroendocrine one and tumors. in right for

And a so active we therapeutic perspective. are from already

space diagnostics that We radiopharmaceuticals as space, acquisition the in in significant the by incredibly which Alzheimer's evidenced of opportunities to becoming there's see also in the is look MK-XXXX exciting.

is a both so look think differentiated chain naturally believe execution, access we regulatory continue as And truly in position to capabilities lead development, diagnostics it lead in market and and innovation. in us supply in and we what well and therapeutics undertake and those in at we to our continue capabilities in indeed differentiated when commercial going renaissance of in radiopharmaceuticals, to I incredibly forward

Bob Marshall

access as clearly sheet nearly credit the capital strong tack in with balance company liquidity very to business a just relationships the as a markets. position liquidity in development. further from that I’ll $X.X on billion well built, lines The our through we’ve mean, from I perspective in And is cash,

create shareholder a in of commercial of certainly balance ability pointed drive patients and the chain And have is capabilities. built leverage are we capable Paul has value and market supply caregivers. team that and as diligence that solutions bring robust for can create and that out, But we and the to our growth to for manufacturing those are going interested decade beyond. company stated finding The assets continued to that

Operator

Our from Jones next question comes from Walsh Trading. Justin

Justin Walsh

think kind point. player to commercial and this expected on pharma revenue of of diagnostic like to looks is growth of continuing big PSMA-targeted least is at at I a and the core clinical with dispute therapeutic it evolving And as investment hard their driver proportional success radiopharmaceuticals sight one part. radiopharmaceuticals

So big it be expecting such which point, next lot imaging I people know pan-cancer guys agent a target expression there. or in with I protein, And might as think of more the fibroblast are something wondering at this have is. CAF activation what you the PET that a pipeline

that yourselves how are Are assets take the taken good of you on are And you oncology? next exciting the particularly there targeted for specific targets in generation have seem of to positioning you think as to as PSMA advantage side? that

Mary Anne Heino

about going. on what always, targets you’re next large be. certainly your well And insightful might versed echo what’s I market is this and very happening thoughts think as market the Justin, in very, also very the we about where

to of can diagnosis innovation market. the Certainly, the I an be think make breast exciting, we treatment for if again, an cancer, would important and that contribution

at pan in are with both well. say, our NM-XX us have that also allow you we as pipeline These really to cancer. look products. looking But our specifically pipeline Remember, our as and targets FAP

of that specifically said within having Now, cancer target we ultimately will that. types

are We have released we Those early. not choose what released specifically as not that products. information. targets also But specific X information those for programs have would to we

Operator

question from next from of Securities. Our CJS Instructions] line the [Operator comes Larry Solow

Larry Solow

start a good year. the Congrats on to

gross quarter mix. should XX% of operating we up the kind going question, profit this margin and respect better continues margins, Just your with I forward? Gross of same on How couple a getting Bob. And creep quick hit sort obviously leverage financial along that for to almost some view there. a think you

was the right, significantly of average So higher think, last even operating in quarters. XX%, I last even margin, which or I couple than think, year's was,

going should look So we how forward? that at kind of

Bob Marshall

Larry. it with balance absolute year, of of you OpEx. gross calling for – balance margin. bit terms I a I’ll mean, the I am goes start As the But to more dollars in

the in of X as does that’s nearly as to online noted to PMFs. levels, continue these bring That those sustainable make particularly work some to to out, margin, you we Paul as needs investments that about point of – that it new Gross you done that we’re have be terms going XX%, at think include were.

those continue So be expenses will hit. to

the year. earlier PMFs of We throughout year balance did we would to that add note this the this network to continue

those furthering to a into so margin to And manufacturing gross on chance some off expenses the into future the basis. as of comes facility that of grow margin sort come overall gross DEFINITY tethered story our and as continue go-forward

now will, the of comes back in for In the Cerveau also terms that our of we terms related the of have before this you takes work in office it if expense to and balance in running. but numbers, for services, as the noted year, that collaboration that POINT. of with keep our this a to investments that base OpEx, Also I’ve the partnership do assets, with pharma – all it’s –

April But so headcount, starts that employee-based of that sort continue just you in, to will merit see grow. kicks expenses right. where from you’re a so

translate drive cash on continue seeing always I very That’s the about I often continue something pace. that’s think as that’s lever solid to And something talked value, which into free that intent shareholder flows P&L. are that will to is a we to Our here. important

Operator

Dave Our Turkaly question of line the comes JMP. next from from

Dave Turkaly

Congrats.

at think you what you do now? updated Or need that? to of have most having to continue percent covered XXX,XXX the are here to base with TAM do the X. geography close of PMF But year, we're that you the have you online? this for said that those I added do you scans Looking and you the targeting

Paul Blanchfield

Thanks for the Dave. question,

we indeed, XX majority served have XX of is states. the said now the And in can vast we’ve of country. patients what So we cover

We served Alaska the given in Hawaii, have not or geographic patients dynamics.

the the current our needs can with to day, continues PYLARIFY, states that the we majority Further with many hours flexibility serve network. and vast would patients really so PSMA in expanding giving like And the around different at naturally to they redundancy to is we be PET of of optionality, have when customers’ every marketplace meet expanding of week. use PMF ensuring which day

expand to that our that that can’t a And able behind PMFs, inventory. world, so is be build unlike our we recognizing really up provide in ensuring can approach small we molecule continued to

chain. an to that naturally have And best-in-class supply excellence. and us behooves customer it complex we are continue to so radiopharmaceuticals manufacturing incredibly And ensure

is customer years PSMA to remains around the it that with leader new ensure than is PET geographies can’t less so that we market PYLARIFY And maximizing for the come. many around experience it reach to

Operator

comes next question Our from Newitter from Securities. Richard Truist

Richard Newitter

Thanks follow-up. for the

curious Just has kind that are the what there. a decision asset, be -- while influenced if there. bit you should discussing more And an provide little curious the we what that the you size thinking time of it plans and And all. initiative just to market end And if PNTXXXX update topic, on how of of on program I AZEDRA, for that I'm asset about was can kind your at on lines that opportunity? kind please we're the

Mary Anne Heino

with implications in So can Bob because Rich, of financial about to clear I'm comments stand back the we're And of made AZEDRA. where then start the want we that sure going with I kind and we that. make to

ended available PPGL. patients have we for But still commercially management did not program. AZEDRA program. But a with life We AZEDRA discontinue cycle is the

let I'll of that. fill in financial in the so a Bob around And moment implications

us market of glioblastoma. you I'm I expectations But on-track will specific here. which the didn't we update also bring the for a is you have offer share PNTXXXX give that and with right, -- we that, also program to for on-time don't to our treatment have But you're with data for have can I sorry. to market program, and into specific complete a

Paul Blanchfield

tumors. Neuroendocrine

Mary Anne Heino

sorry. -- tumors, will TAM. we don't that the share market, corrected here live specific closer get -- And am Neuroendocrine tumors. getting the I here. certainly I we glioblastoma market to that data for have room But as I'm I in neuroendocrine think

Bob Marshall

just follow Rich, up So on that. to

it mean, So about I is really phase gating.

sort we the think us you life you're about case. it -- we the decision of to going became any And business As evaluation, point to to trial financial of look that continuously kind intelligent or the evolving was at with cycle make kind were discontinue. that of management to case, clinical at business as apparent

accounting about group perspective, together. if But think look the AZEDRA you at an as entire from you intangible

running And after together that that So a on as this impairment. market that requires at put take do juncture the just study sense the when you information you it would model with it I charge. an new noted, the evolving that made with it opportunity, business all we

through as be to sold. then even goods intangible to though making what and is manufacture, it specific, asset, marketed just continue available continue pointing impaired are so we patients to Mary piece of is commercial Anne make out, AZEDRA cost currently has to asset And The caregivers. the been was AZEDRA

term we what cycle of life then, R&D asset IP we on that management aspect through and in particular of course, books of terms the potential that the it were long outcome the is R&D. And is intangible program carrying what took for

Mary Anne Heino

really I’ll for and in-patient that about continuously very you’ve in the us pandemic. one is just impacted But other received pandemic, is speak one this, the AZEDRA that make patients highly think, during heard hospitalization. was path by I negatively AZEDRA the labor-intensive comment. treatment requires who And

we that staff, hospital they’re disease indolent, in that what the very offset to is was hospital decision that. of case, and AZEDRA. such of – type it’s the There slow certainly. considered environments kind have And resources underlying impacted, to And in PPGL taken already continuously on disease offer that but we’re given frequently the short this treatment of using the having only is as – seen And growing. not was treatment

an for think the offering for in we the with do. We believe patients. market. can the product It And product in indicated product. indication remains an that’s U.S. know what we the only We PPGL important still

the update this most have million. TAM me PNTXXXX that for will currently with shared I’ll to shared TAM Mark and just estimate live as recently we is you. what the we to $XXX happening approximately here. market Again, But enter be all has that

Operator

comes Roanna line Our Securities. from last question SVB the Ruiz of from

Roanna Ruiz

to check data a around your time quickly affects filing possible assembling package? that what that wanted readout curious, and submission I turning 'XX on line, I So was on a the for regulatory asset. PNTXXXX plans half are data the see SPLASH second if trial

Mary Anne Heino

So the they PNTXXXX. are submission, that directly the related, will Roanna, because it NDA will be the – the those data for trial from basis of form the SPLASH

in those mentioned data It half they be trial. prepared As remarks, to they Biopharma, we our POINT remained in that is we is that the track. And expect second available publicly have also completing on who our said of partner XXXX.

all program. with our will We haste proceed moving forward in then with

in of noted is, makes then frequently. As that PNTXXXX more be remarks by FDA. to Fast you our designation themselves we FDA the Track kind or awarded out what plays was today, available What the that that means to

the interact preparing your submitted you you’re you’ve to with once as file the more and frequently. have trial, then that FDA your ability So

makes process And basis you will components different again can and also efficient. submitting rolling NDA more have what’s what the called be which a facilitates total the whole for the of application,

will this outcome of We with available hopeful about a very patients and trial think positive metastatic be. that the treatment to course, for those addition important We’re, of the what remain SPLASH are prostate is cancer. options

– And offers. what I’ll is final Fast designation Track comment this make also one about just

get iterative FDA. You from feedback the

So you waiting a just kind it’s to linear to of in have it. then not get for where react and milestones feedback you way

file rolling and again basis to ensure that your a meets expectations. interact get on You their

Operator

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

wonderful a have and disconnect, now day. may You

Mary Anne Heino

everyone. Thanks

Lantheus (LNTH) 4 May 232023 Q1 Earnings call transcript