LNTH - Earnings call transcript Q3 2024

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Operator

Good morning. Welcome to the Lantheus Third Quarter 2024 Conference Call. [Operator Instructions] This call is being recorded, and a replay would be available in the Investors section of the company's website approximately 2 hours after the completion of the call and will be archived for at least 30 days.

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

Mark Kinarney

you. Thank morning. Good Officer. are President; today our our Paul Chief CEO; Medical With Marshall, Brian our our Commercial our Morgan, Bob and Humphrey, CFO, Blanchfield, Officer; me Amanda Markison, and Chief Jeff

call We will begin prepared remarks for open and Q&A. then with the

Form from financial we The and under these made release certain the slide of are these SEC reporting morning, and is Investors the measures the non-GAAP detailed our press statements issued Investors which filings. due which quarter statements. Actual materially our forward-looking differ in GAAP our include Reconciliation comments measures. a today's measures to could included a was in This our to variety of in website. section of to include financial section uncertainties, third the furnished release, may risks SEC X-K Discussions most results. website. also will Any of XXXX presentation comparable are directly results

call to CEO, I will over our now Brian. the turn

Brian Markison

Thank and deployment. year-over-year. with operational our discipline digits excellence, market-leading morning, you, we XXXX enhance sustainable and company pipeline and delivered long-term third growing a unmet through In ultrasound radiopharmaceutical products targeting the our growth PSMA double and everyone. PYLARIFY, the prudent enhancing grew radiopharmaceutical PET leading to performance need. Mark, create remains quarter, DEFINITY Lantheus financial a blockbuster on in reach status commercial capital and focused our agent solid significant agent is imaging track to continued and areas leadership good

value shareholders. to and and diagnostic both extend inorganically pipeline agents our The enables for continued long-term us organically flagship leadership success our create radiopharmaceutical invest of in these to

X, rule. commend its Under OPPS on Medicare fee-for-service including the I'd diagnostic outpatient January our and like move payment Alzheimer's also while NAV-XXXX, decision patients the pay for specialized prospective This supporting for hospital's beginning diagnostic late-stage are CMS will going the in ensure is quarter, MK-XXXX to we or to long-term of for for PYLARIFY access separately system, product Before XXXX. accessible for and radiopharmaceuticals significant potentially landmark specialized review innovation forward, diagnostic patient to radiopharmaceuticals, win including field, disease. a candidates

now call that, to provide update. With the to operational over turn an Paul I'll

Paul Blanchfield

Thank $XXX by today share grew portfolio down approximately up growth and in strategic X% offset Net we more the was secured our along PSMA and PYLARIFY reached on with of Sequentially, billion to market. you, #X our and PET net the with existing market than slightly price accounts Year-over-year progress imaging sales $X Brian. were in PET its year-over-year the XX% I'm on grow year-over-year agent leadership remains as pleased for to status clear and commercial PSMA pipeline. sustained mid-XX% partnerships. sequentially. as track majority million, blockbuster driven quarter sales. increasing overwhelming volumes, by XXXX

revenue driven to by quarter sequential as largely well recently was secured our partnerships the trade-offs product intentional as decline net seasonality price The of and due impact availability. strategic traditional third

believe our and customers. strategic to to competition premium that our hospitals provides ability versus centers that and value of commercial We and our the freestanding continue a secure to maintain with clinical imaging PYLARIFY partnerships price reflects

PSMA franchise in are as billion clear $X to PYLARIFY well the market and in we believe positioned We sustained a continue leader imaging as XXXX. PET

importantly, following of need of diagnostic $XXX day per with payment access. separate innovative sustained radiopharmaceuticals with This significant cost expiry the payment access pleased transitional updated CMS' for than represents status. diagnostic pass-through value field to radiopharmaceuticals, most progress recognizing rule mentioned, Brian As for greater we radiopharmaceuticals the and and patient for including provides PYLARIFY. The broad rule diagnostic the are very

current is Note PYLARIFY the rate XXXX B found fee-for-service Medicare addition who approximately the and XXXX, on in its as same year X, is the payment procedural with separate PET payment January XX% that CMS addendum for for maintain rate. traditional PYLARIFY to this are setting. payment. the hospital payment outpatient in coverage implemented CT insurance calendar of is treated will When in patients

We will ensure that and with the be to the does value working will they our to PYLARIFY understand community. the offer to recognize customers rule final and cancer continue prostate

sales ongoing share high by our was as third proven franchise, In long-term our market growth. increasing competitor success DEFINITY clinical remains excellence. to than expected slightly supply cardiology market year-over-year. record XX% application year-over-year clinical its million, of single-digit to challenges delivered commercial higher long-standing that DEFINITY's net track quarter in of driven was and operational This led and $XX addition higher value,

by are coronary artery disease. approval we known its FDA's which diagnosis XXXX. generic GE FLYRCADO Healthcare an of tracer enhanced the FXX out-licensed We also name, approved radio of Flurpiridaz, pleased to is also for FLYRCADO in by

commercial global has Healthcare royalties milestones. GE on lead U.S. commercialization launch. will receive rights based the Lantheus will and

late-stage We disease. NAV-XXXX, and beta-amyloid believe next-generation in they meaningful MK-XXXX play and staging and and of tau are monitoring diagnostics about Alzheimer's excited our diagnosis, can role also a radio the

differentiated expect low allowing images and clearer potentially [ disease. to We for detection earlier be high binding to due their off-target agents these of and finity ]

pathology in and for tracer rate is dynamic visio range in of represent which function. MK-XXXX critical. be closely and spatial may longitudinal MK-XXXX response tau currently advantage and is of utilized assessment detecting symptom industry-sponsored decline tau an small of Alzheimer's treatment Tau in clinical a declines trials. changes PET XXX language disease of academic to for ongoing can linked development or severity, progression The

early tau currently and be earlier which PET amyloid academic are Institute industry diagnosis, a therapeutic in guidelines the on imaging new accumulation. Alzheimer's is as may to The continues for We being and Association suggests update aid nonspecific approved likely both most National monitoring. has recommended and realize believe therapeutic used and to MK-XXXX, could sponsored Like useful Aging high in identification Alzheimer's staging amyloid patients NAV-XXXX recently the low of those studies. their NAV-XXXX and white agents both detection treatment and matter beta binding benefit. for detection of sensitivity, it

U.S. Based reach on inferred has end current for analyst believe by billion $X.X mid-XXXXs. $X.X radio and uptake the billion we to by market the Alzheimer's volumes, therapeutic potential diagnostics forecast of the the of and the decade scan

We XXXX submit neurological expect generate to NAV-XXXX and PET demand excited lever in operational and to are expertise growing imaging. and MK-XXXX meet our increasing XXXX the in tau and to for NDAs for amyloid commercial and excellence and

our it Now pipeline. the to back rest I'll turn of Brian to discuss

Brian Markison

Thanks, Paul.

interim so PNTXXXX have for overall of study. radiotherapeutic focused candidates. deliver recently our the Within covered new our pipeline SPLASH metastatic product castrate-resistant on protocol discuss our oncology OS analysis III is unmet registrational significant assets diagnosis or disease with patients our programs, performed cancer for Our Paul prostate areas the potential compelling the prostate Phase of for approaches and need. treatment PSMA-targeted to is prespecified survival investigational portfolio, events. We that I'll the was at of the second cancer. completed The treatment XX% analysis with neurology

and both at results have that survival interim from or the changed events. materially prespecified RPFS radiographic The not OS for OS performed XX% progression-free analysis of was

for subset the Lilly compelling with the partner perform in be our an We preparation interaction that [ ] additional and our forward. data to on path may continue Eli FDA to review analyses

hormone for the endpoint remain in results its alternate reminder, by the meaningful patients the RP RPFS a arm The ITT or study ratio which in versus overwhelming therapy. SPLASH and significant primary PNTXXXX number over crossed confounded of hazard receive and was to met the OS As improvement a statistically of population who PNTXXXX.

of Trials of meeting, Sartor, the Mayo SPLASH ] compared population [ Radiopharmaceutical ESMO noting and Professor benefit over meaningful Director PNTXXXX switch. investigator and Pocock lead recent potential adjusted therapy crossover confidence the the Oncology intervals were benefits control at He analysis from the arm. highlighted PNTXXXX to and hormone Oliver Dr. the that of Medical At discussed for Clinic

that been We have enhancing needs. high late-stage have medical on additional and adding pipeline the to unmet by our address assets potential focused early-stage

We with other our on our continue radiopharmaceutical to clinical work programs. partners

include RMX of validated LNTH-XXXX, other I'm available addition cancers to patients. osteosarcoma particularly for breast these options peptide make radiotherapy radio our a prostate, they or to and for about and constructs targeted excited potential best-in-class tumors. therapeutic gastro-releasing candidates and These the for aimed solid oncology treatment pair the and LNTH-XXXX targeting GRPR meaningful novel receptor treatment other the theranostic LLRCXX our and targets product because at new XXXX represent have

I over to will now Bob. the turn call

Robert Marshall

provide I will the prior Brian. quarter XXXX on adjusted otherwise of you, the focusing financials, comparisons with highlights unless noted. Thank third year to results quarter

has Paul increase contributed realization an up earlier. partnership details. revenue was million, Turning of oncology amidst $XXX.X to of result sales Radiopharmaceutical the environment seasonal competitive which as efforts was trends strategic Consolidated attributable as of $XXX.X to with the the consistent well is XX.X%. XX.X%. third for The as PYLARIFY, quarter the our net million discussed

$XX diagnostic of million, XX% higher. second. revenue in year's year opportunistic Highlights million with quarter, of due the $XXX.X quarter down this sales include at million third XX.X% in in along X.X% higher but revenue the prior TechneLite sales Precision to repeated was not of $XX.X rather DEFINITY

million, annualized of and was Investigational lastly, the million, usage with contributed And out-licensed Progenics. recognized asset the up of and $XX.X with $X.X we Lastly, partnerships stream other royalty million an XXX.X% milestone revenue respectively. out strategic RELISTOR NAV-XXXX completely $XX MK-XXXX result. a associated and from

Sales a brand in prior of advocacy. of projects and PYLARIFY XXX the of part primary our was assets. of mix late-stage XX.X% for ownership PYLARIFY optimization higher the focus overhead costs. the Operating higher at and margin concentrated Favorable cost net profit on of material, were and in strength drivers market early- research points. freight an G&A. investment increase year-over-year year R&D for investment and efforts and quarter DEFINITY basis XX.X%, points was product marketing rate patient Gross basis support on offset than or contracted third by on ERP strategy, with XXX and increased revenue expenses

million is this to to Net interest interest and for is quarter taxes amortization, noncash of relating million $XX.X remainder an million investments were Theranostics respectively. acquired result with million stock Radiopharm amount, acquisition, and intangible in before prospective as the incentive of $XX.X $X.X of unrealized profit other Total integration and a $XX.X quarter in tied expenses. million, other million equity gain Operating $XXX.X expense offset in of XX.X%. of the expense gain with by debt. nearly $XX nonrecurring on and $X and plans net adjustments part associated our of income of the income, of increase existing million our was

income million quarter rate was shares, increase of an of weighted resulting million increase $XXX.X slightly effective average was XX.X%. GAAP and third XX.X%. the for Our diluted previously outstanding XX.X%. $X.XX share basis, an adjusted an were the GAAP diluted and quarter tax on million adjusted lower reported The was fully net than third $XXX count basis, per $X.XX share fully earnings an XX.X guided. on for The

to turning flow. cash Now

million. $XXX.X totaled operating $XXX.X quarter prior capital $XX.X year. as essentially flat the operating cash Free million, which define cash flow over year. prior with Third million, Capital less flow expenditures, year. totaled was expenditures million $XX.X cash we $XX.X flow, of million prior increase an over the

as During Concurrently, Molecular company assets in-license to shares Theranostics acquire the common the from well million payment we invested and to at million Life tech as asset. $X RMX LRRCXX milestone Radiopharm to quarter, transfer and NAV-XXXX made we from invested $XX in TROPX related Radiopharm. the the preclinical

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

XX liability the million We XXXX, current strong our to the $XXX position. above capital to that the the accordance The as note debt conversion terms of bank days the last company's undrawn to and working price in million conditions. liquidity $XXX also adding than reclass convertible XX of like the have for reclassified September remained of the statistics. more XX company's our stock We'd period XXX% in access business to threshold as was with distort revolver bond's price quarter will the of

manage access to noted, As more and I sufficient company the have the reclassification liquidity than implications. has to capital

now adjusted revenue the full year. EPS guidance and to Turning for

revenue $X.XX of We are to billion. billion range of narrowing $X.XX $X.X view the in range our be billion to from prior of billion $X.XX a to

quarters. over mid-XX% the as expect We case couple to been of and PYLARIFY to last XXXX has grow continue over the

$X.XX. We of per to to adjusted should and which operating share, expense now reflects earnings our differences also narrowing in This QX diluted QX are range of from $X.XX be timing lines. our guide prior $X.XX the within the range fully between $X.XX view of

our benefit financial organizational near-term from the will in month XXXX we the future growth. changes took $X.XX action an would and last as with retool hire skills to considers that create with also direction. we for reverse new This to capabilities align expect talent company strategic late and approximately in we that It QX impacts

does estimate completed any might this the be development this include PNTXXXX all case business year. been As nor for not and any year, incremental that investment further

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

Brian Markison

Bob. you, Thank

Lantheus has radiopharmaceutical the future. leading a amazing an focused lot and As company, accomplished has

DEFINITY become launched have We blockbuster. the and diagnostic spec the strength and successfully PET levered first of franchises our radiopharmaceutical PYLARIFY to

success With a expanding pipeline foundational we innovative R&D diagnostics. our Alzheimer's emerging of radiotherapeutics include commercial the as new our engine, product candidates, have including products it in invested and to radio

development We capital. will and and continue M&A to thoughtful pursue business deploy our intelligently

commitments. fight at since have patient is radiopharmaceutical growth long-term to made Lantheus and outcomes. to of positioned I'm their to the over in report million to look to endeavor products sustainable follow deliver and We forward innovation of success forefront the these our proud delivering better find, beginning difference lives deliver the families. continued that a on and disease XXXX, positive patients of commercial Lantheus remains in X.X and

ready questions. to Operator, we're take now

proceed. can You

Operator

from Leerink Partners. Ruiz [Operator of first Instructions] question Our with coming Roanna line the

Roanna Clarissa Ruiz

So behind there revenues? about Could there a appreciate you a that more was of and the XQ talk bit was seasonality bit PYLARIFY's impact, the I me. rest some you could X And help or new us a for quick I factors a the should year? curious come into that might are how have about of also strategic this online? flow changes partnerships think if

Paul Blanchfield

Roanna. Thanks,

third blockbuster to So X agent basis, as grow does quarter and remain quarter, status did sequentially, guidance on holidays ever of reach absolute and an majority favor an We first with overwhelming reach significant grew PYLARIFY absolute the call, the XX% schedules, by the and the accounts PYLARIFY Day broader and to QX line our basis. vacation third the with quarter. year-over-year also the of for to from in Labor driven imaging PET prior only in expect split QX grow not on dollar physician did That's in status. we track it mid-XX% In quarter on our during being X and revenue line PYLARIFY QX seasonality, XXXX really in July blockbuster the mentioned the but on market.

of The really availability. make net really then product growth price lightest to driven being the quarter, second net And quarter compression were at accounts due we've saw third drove Also, driver secured strategic we competition intentional the the where sequential net of the price impact seasonality chose partnerships. This ramp a the impact there from was transactional a our year. since the underway traditional the which we decline was with more sequential price quarter majority recently of trade-offs versus year. and has of than third decline. quarter to the that continues been customers not an It the beginning match effort third price from certainly to usually price by, been and important throughout quality. of these sequential to And year, some handful lastly, a lower we largely did one,

focus we to in remain to PSMA we in think expect and that market going revenue well #X are grow PYLARIFY which are for And to is choice, positioned imaging the agent the of sequentially PET a fourth forward. franchise the sustain the the quarter $X going that I we billion so incredibly forward, going

Operator

And question from coming Anthony line Mizuho our with next the Group. Petrone of

Anthony Petrone

final the Paul, Congratulations some here up quarter positive on of the just comments announcement XXXX. good rates and from Maybe CMS. to on clear another the for

some in largely PYLARIFY unit confusion ASP, remain cost said out know the rate addendum there B seems in will You that line. reimbursement clear XXXX. but there and mean they're I pretty steady was between for

sneak detail. out quickly, So maybe little in I'll then that And it in. parse just a more just to bit

implied XQ guide light. Just bit little a the

between bridge sequentially? step guide X the just maybe talk down XXXX first the the why and months the So through

Paul Blanchfield

the and So CMS maybe then answer Bob I'll XQ take I'll question, let the piece.

we're So importance access. have did that the ensuring care on note incredibly value actions remarks, and allows Friday separately can as CMS lower-priced which recognizing to recognizing the to as PET mentioned noted, separately and that with of prepared patient as XXX think would diagnostics they a the announced CMS some consistent more arithmetic I in paying innovative that we on radiopharmaceutical then pleased and be well as diagnostics you be need evening, innovative for the products day and some they interchangeable, specs are that paid, remain just Radiopharm products paid diagnostics really to not for be cost, separately. mean above bundled the radiopharmaceutical

is what the rate for fee-for-service the that rate Now for CMS very coming Medicare we calendar and year XXXX much final in saw as matches of out existing hospital patients is its payment on Friday same outpatient the effectively setting. PYLARIFY payment

in does that discussion and is has there payment the differences and for was CMS the confusion that what so rates on really some marketplace between Clearly, use. PYLARIFY and going sustain been what And to XXXX. payment

X payment specifically are rules had the agents final months. those I in within X next of rules note, majority we lose the recently spec are that that think lost rate agents vast the the commonality improvement highlighted the have material a CMS that expected July. X draft the PET in to to versus that pass-through And or for of in pass-through XX XX

And PYLARIFY their the CMS to well continue therefore, we support did CMS. And the agents innovative market in to this and growth true radiopharmaceuticals. already cost for for continued sets sustained believe those access so payments lead. that that are us in those up for to we place to overall they think put reporting And

some turn guide Bob the of questions. I'll it on over XQ to

Robert Marshall

to From take by a you're it pieces. going different perspective, the revenue

that DEFINITY because but be of From expect are had kinds year-over-year from competitive QX. always than things competitors improved QX that we both And to year. you as basis multiple part stop some mid-XX% would be pure dynamics continue sequentially sort in would and be as we we having that has QX for noted, a business, from a the PYLARIFY year. Paul the and don't of that having those into we perspective, PYLARIFY, gross greater don't do and thought looks dollar moving for forecast net track necessarily XX%-ish if So and there times QX. Paul on business. spec other his remarks, for people -- prepared the noted first supply and think the issues, foremost, And control of with about full

same of elements. in the those. perspective, opportunity I forecast So from could for for type that don't think there those some that at again, be both But we do overperformance time,

It a we But would down on projected into expect step expenses step-up yes, predicated quarters QX EPS in biggest on As far the and that, call, the really and as fact is from goes, earnings. is QX, noted in between I prior from QX the the even R&D absolutely. the to that QX. that's had step OpEx to increase down that X as hence,

Operator

And question Newitter Securities. Truist Richard coming line our next of the from with

Richard Newitter

of X-part that sorry. kind confidence a Just question, single $X PYLARIFY -- a franchise you can sticking billion you 'XX. in PYLARIFY, on said maintain see you as The sustaining

the sounds provided that is you not that is what grow. pricing than the patient just your words the like that to sustain, been. assumption different hospital going not And all of commentary it's now use You it be Medicare setting

it do dialogue you CMS what grow? you're level pricing you assuming, word but help confidence what's use know of that reconcile Or XXXX? change? with And me direct this sustain your instead something that -- of a Just that could Just to of gives in why the level at is degree that there? be you unchanged going to market confidence that have is then

Brian Markison

-- Paul, next And But clear to PYLARIFY? sure like up I'm we anticipate year. pretty growth to think you the to first. just we with was on mixing volume that? don't questions Paul we specifically. I answer for not referring growth want Thanks do why we We're add what to do PYLARIFY which want that. start

Paul Blanchfield

and those have course over securing franchise. seen the the our partnerships. I in partnerships, confident to we're sustain, of Based roll the reflected effectively XXXX wrapping the comparables. be to based net said, of price on quarter we going Rich, third think expect those strategic we're would just on compression in in third the We $X billion still as long-term normalize I up quarter. We're

so perspective, impact expect annualized as continue a And the an volume basis. still grow. they from will roll have we to But on they an in market

just and to third conventional market point, The addressable $X increasing of as of over look approved end that as at grow. imaging, we At a it to PET think adoption environment. more the and market look continued the radio PSMA remains we quarter, this billion can we additionally continue dynamic the currently still incidence to prevalence therapeutics we're

positive And that what price. But a saying the in is secured impact comfortable that net overall roll market, there strategic very recognizing that's on on these transitory remain today. we're partnerships we are so and

On with I engaged the CMS we side past. in think of things, have CMS the

for out to continue seen potential are should diagnostics. in as reserves in paid to feel other conversations right But like need as them. reach that understand good of diagnostics a Based make stakeholders will radiopharmaceutical that should innovative as they PYLARIFY innovative relevant alternatives, on adjustments we very need radiopharmaceutical we've We with to to XXXX Naturally, the a always well clearly what we position believe be in is CMS marketplace, separately. I think they the to. our number

that Advantage over talking the has declined potentially Medicare as Medicare XX% of over brushes, And if broadest continues in patients fee-for-service. we we're gain time share about look to

well it many That changes, well of under note see as pass-through. was that agents we final very as a paying that good the have some position. agents PYLARIFY so reported a or is rule. I ASP would are were to other not not think it have there don't to required. ASP as we we clear in are both because Unfortunately, their that number would as proposed in still rule And forward. CMS in think they're even made if open also going very minor on I

be for the a disadvantaged setting not there's We and clear patients to path other at so PET rate will PYLARIFY paid payment relative fee-for-service that for continue those PSMA retain to is ASP and feel Medicare to hospital forward agents. in very report we to outpatient a PYLARIFY separate

Operator

of Taylor line question the next coming Our from with Jefferies. Matt

Matthew Taylor

could some on the Just the as your addendum adjust as I goes, in you understand unit Is you're talk far contracting see Can to we down the final price you pricing to XXX. a price you about future? that going this now? price those And to is to lock to partners if ability follow-up, the you wanted get better pin that as within contracts up obviously, strategic term. the gave these up are going get price longer there, if

Mark Kinarney

want grow alongside share. those the intelligence take We're question. while that's And them. And don't lock comment regard the in we're key with because I'll anything. obviously last we don't to Yes, to not grow Paul. be the our to fair, pricing, we a to up on the them we in With customers partnership help competitive going really business that just details partnerships engaged to

Paul Blanchfield

PPT noted, does are there final agents say CMS to of or in rules the XXXX you're feel that number on year vinyl, addendum this value come of came a right And far say, that common CMS confident at rules. appears increased the as the rate all, reserve before the B the out that we the a a reporting Matt, to we out rules out to than if these recognize PPT, thread in beginning appropriately we proposed innovative with. issue from that proposed with to paid adjustments, recently for reading not to the consistent is to PYLARIFY final case, dose where payment smaller having about the to an and but the issue not were, Naturally, to radiopharmaceuticals it's XXXX. or proposed And ASP. the rate used price. with be come be going at per to be losing is correctly average look It's lost make payment at which materially millicuries

Operator

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

Lawrence Solow

us Just little just on issue. strategic Can this just the this more how pricing quarter. partnerships implemented were of color on price a or you the much give maybe

-- Or there quarter? kind amount then this a a good have in is happened based like lot idea, material impact is next was and and continue And of what of you're basis, grow was less on more Or to bit Just on PYLARIFY just a revenue fully that annualize impact question guidance to them? from still grow this volume a hesitant not that. yet? I that expect little a rough to basis give a do year, what rolled price a there second you the multiyear it to sounds But it like on both still on for understand basis? is to

Paul Blanchfield

So I the there. appreciate question

versus based, well $X end of I the are decade. as I incredibly PET of conventional the to the radio therapeutics about and market PET at I billion that's as on continued first long the adoption look term positive market. those mentioned And around we're in by $X think PSMA the the imaging. if PSMA as earlier, grow incidence growth billion highlighted imaging prevalence, currently we've continued an adoption addressable could of

the the conversations On the of pricing leader, with gained year. the the really last market made We year, very kicked specific with these off, we're we've piece, past, as steam course throughout in progress it are highlighted positive pleased think that this I we've customers. as key this very

still impact get we worth. We will quarter's as with signed of a deeper see the into partnerships the full continued year full QX and annualization being

of And nature. multiyear half full going price really solidified throughout in really contracts are that to year the next 'XX being the compression of see these first of half this net year go-forward given so kind a I with we're normalize think second

period was really we're the where performance phase-in driver so these. the in really of biggest And sequential of the rollout

impact. a continue forward. grow. grow very to PYLARIFY and is this feel market And positive is very going the will continue then sustainable a so franchise And lead we transitory overall, will and that to this

Operator

line And Tara with our question of TD coming from next Bancroft the Cowen.

Tara Bancroft

the going questions. little So on the I'm to I'm But more to Alzheimer's hear pricing diagnostic pipeline. from bit deviate a curious

for can tell other these what's little these external the XXXX? on pipeline. the tests us potentially blood your coming and how about more could hear you And market What's from So we the thinking bit these? a the are that that assets down in or or differentiate currently available on

Mark Kinarney

us same you off relief, a thank say track. taking the can the thing. because I know And That's we pricing many don't times how for guess, I

Alzheimer's in great best-in-class And our about off appear MK-XXXX with III NAV detection right portfolio, development at very with So we're advanced to because assets have really they target. Phase I really I think they're think these now. de rates, excited minimis be they where a assets

So little to want a comment Jeff, more? do you bit

Jeffrey Humphrey

are binding. sensitivity mean low degree off-target second you. these They generation. and have high exciting compounds. are of I Yes. Thank They a

as mentioned in I imaging, imaging, the the severity, a you anatomy about information. for can the for asking versus the has beta and markers recommended correlates As rate question diagnosis important mentioned and being for that the the Alzheimer's the tau you -- for issues decline imaging with tau amyloid symptom treatment in big as that staging that's And the the monitoring difference and comments, think see such some disease. in of were Association comments, PET cases, with X of tau and Alzheimer's the serologic

excited we're this portfolio. So pretty about

Paul Blanchfield

potential. in the it's few more points an about add, Thanks, we're area because that only Jeff. portfolio. Maybe Tara, to Naturally not just for incredibly the a excited I think

XXX,XXX the are you at individuals for agents. of that's therapies, If end on by forecasting based and uptake the disease-modifying looking just of of look therapy north at approved they're potentially what recently decade, on analysts the

to this requiring a and case, presence very at they billion by the of $X.X billion about beta for market looked end amyloid middle imaging, creates be look of a large PET Alzheimer's, XXXX. pathology that potential decade that in note it the at we've the by their you the the labels and If $X.X are

that's opportunity. a so significant And

have going role a is in much very this testing to blood marketplace. Serological

commercial think it's lever an appropriate imaging only PSA will that infrastructure scan, where market as for which Alzheimer's cancer, and man other very and as obvious, we And complementary production would the eventually seen much are PSMA determine PET along can agents but becomes we've at same would note appropriate basis. with really XX we when age a patients prostate believe we've reaches for both look grow in F-XX a PYLARIFY. that complementary be I from the it are XX I somewhat these PET with but to the which established that scan, screening or commonplace many helps factors, of

and opportunity so for significant support like of grow to overall per diagnosis, with staging market and the to really both which And monitors, potential continue the the scan individual we patients. create therapeutic position the

Operator

coming question of Yuan next our And Zhi from B. the line Riley. with

Yuan Zhi

Maybe asking the question differently.

for for the ] MUC [ the method reimbursement rate reimbursement get result the update, a So lower rate RFI. will CMS

it latest in up. this actually However, update, went

MUC to methods. think XXXX a we if this should from does how to it What mean there ASP this So about is change calculation?

Paul Blanchfield

some appreciate. I there's of the marketplace, considerations out in the lot CMS I with so know understand confusion come with. in there's Yuan, has what a differences

reiterate, think to I don't seen, XXXX year out but I is CMS mean just what calendar their with seen came goals think which and we've what I we've is different.

of some made. Just commonality is calendar to some mechanisms whereby a Naturally, rate. they've to amongst is but they adjustments the there adjust payment for other This material note, final year make CMS the right reserve they adjustments quarterly.

to PYLARIFY. continue report We for ASP

been since doing launch. We have so

We to continue do so going forward. will

rates becomes be little exactly be And paying while CMS' more that, well would payment it's diagnostic ASP based that in believe ubiquitous as we rate We XXXX, once as to for sustainable. what the on so on to radiopharmaceutical the space. early that have a openness could determine

ASP. to mechanisms current to time reflect all rates would open reports up not report to working the payment ASP to that be further as to, will CMS cost they've be would just ASP. their to That's given payment If said We adjusts, continue this their part MUC. versus set not continue they the again, hospitals. on true based diagnostics to PYLARIFY be ensure more report be to coalition possible intent at there. Naturally, innovative everyone CMS's support ASP of to as move we will radiopharmaceutical broader have

Operator

the Brookline next Our coming Kemp with of Markets. line Capital question Dolliver from

Brian Kemp Dolliver

trial. the we going that you time should I'm wants expect XXX% about But to looking and at PNTXXXX, roughly for hypothetical ask a in if go to we going frame, wait to Are What to frame? of be is question. time have to if X-month events you CMS this X-month route? a go

Mark Kinarney

I FDA. agency of think the see possible And that study. it's to would you're the like the completion referring to the

into first It's our unreasonable the of OS continue the us not at look will that and quarter. rate from reported this think events you to If partner.

bit However, clearly, open could a longer. the OS we the trial final control keep don't for event, which

prefer mentioned, And path as understanding really not I clear a going partner, much I better a the too to Lilly, to speculate on we're our I that. to out reach look, So with think, forward. confirm of and to also agency get

Operator

line of And Walsh the next JonesTrading. Justin coming question with the from

Justin Walsh

provide think stick do analyses. what the on can point to versus stepping related wondering outcomes Lantheus away? Lilly I'm any commentary planned PNTXXXX, this, you the push would subset with with And if agreement you Sticking to

Mark Kinarney

analyses. And We I lot subset to we did that unpack have we are a looking mention at here. think

he Dr. the there support this rate. a there's you think for of I clearly ESMO positive analyses that back out if the recent pointed post hoc, And presentation, and where crossover effect at the were XXXX OS we few in population. meeting adjusted findings Sartor's quite that actually, look

got Jeff, ways the and on comment to I like. you data. the continue you'd we've unpack this we if a think a think with I can to data But to bit unpack go further

continue we'll from Lilly with forward the We we'll and with to path and determine work the meet there. agency

a But looking think, this satisfied that look, is and I have safe back, really, product. already effective we've

the think degree thing from the I mind therapy hormonal the to XXXX the events. in arm is of overall survival that to keep confounded completely crossover switch has high

statistics the behind population. ITT So -- the and

conundrum. a bit a it's of So

have us issue trials of with the similar I conducted this high and same designed this dealing are think that crossover all them that time. like have rates at

So Jeff, to? do you want

Jeffrey Humphrey

about its positive as of very Oliver the benefits Yes, this the add clear it's study quality presented she on has met Sartor endpoint. primary life just trial It when I was endpoints. would well. And very that

think I as been well. field has the positive

Operator

Andy next line question of And the Hsieh coming from our with Blair. William

Tsan-Yu Hsieh

about that's that average assumption. of billion per Curious currently billion, scans you kind just And providing progression on view scans as how the guidance. TAM of about decade? this Maybe patient? into market your the the for agents these use benefit with the there number in grow things yet attract the patients talk of payers kind baked we're what's to will dynamic And a the that $X.X actually kind ensure is disease will longitudinal $X.X that, then Alzheimer's the next And with into of to that to a basis? dialogue along how

Paul Blanchfield

Andy, thanks for questions. the

I think on. very spot

-- grounded are at when we We market assumptions, the the therapeutic look consensus really broader are what specifics around in is around our uptick. those addressable

so may mentioned, not. And I may I have

see on just see we patients end by of on based therapies expectations therapy think I XXX,XXX Alzheimer's the for disease-modifying we currently approved decade. that could the that the

a a still We market of exactly to how on early this basis. on patient are many per in the going staging a stages see scans and on monitoring diagnosis to understand we're

the list case, scan beta market, price in approximately for this and quick is take. tau in $X,XXX math, both But per amyloid the give neurological, or

$X.X And $X,XXX and XXX,XXX at so you're potential the of per with scan, looking about billion.

naturally, scan the say, point stages Now say in indeed, and the go a benefits time this growth will that will of scanned selection given patients to think X tremendous. point be the will this point x it therapy. of be of receive it's at and the to scans don't to not there. adoption But get some some market patient There's therapeutics. suffice I a can at every early still at more we're on we're going

look and payer astute, plus one-off dynamic, needs think Americans their as at a we is these appears disease and suffering very I we've to therapeutic label potentially of to approved and system, or from advanced therapy $XX,XXX it therapeutics, recently cost monitor the agents. a they continue Two, the that if to dementia, $XX,XXX that what care are relative ensuring right a scan at to that price at health progression the procedure a on the get One, ensuring seen look be for in $X,XXX at event, Alzheimer's you range with million X who when the which we the as respond. that's patients time right

the billions PET time. of that therapeutic tens A policy looking insurance they are expense patients at payers are the fantastic image of best is when potentially at on dollars right getting a treatment to of ensure

patients we And are on perspective. therapeutic adoption impact an PET larger while payer what the make of a to to expensive is and market market is from the within this, pleased playing and because the truly can even large how so And similar we've seen be very more deserve. PSMA diagnostic it very

money. to the help think will a agents there and these be And so even inform considerable care we for value system potentially care proposition save health

Operator

of coming line from Ed with Atlantic. Wild the next Redburn Our question

Unknown Analyst

grow about bit that, on should any from the If now on helpful. you on we FLYCARDO. you have highlighted ] you is also how that that And can also color of would be that the supply that be [ little color you thinking in business given if obviously a be launched could thinking ability approval up the that, royalties about implications? How follow early would also, the to give we Pocari any

Paul Blanchfield

good on questions our partnerships. Two

given local commercialize and of it multiple U.S. regulatory markets. a market. the in is the just naturally than that in They've ramp with to pleased Curium Pocari in approvals incredibly are in continues pricing approvals slower Europe, Europe dynamics. We and

excited to world. overall, ] the discussed to global be I past, the we're Poclari the medical brand conferences about as PYLARIFY/[ at in a think be potential around incredibly said for we and

in perspective, they minimal near financial the a ramp. as the from impact continue think relevant to is I term

do we those results, into so minimal a factor they our but And role date. have to

could time, that material necessarily driver that, but be won't optimistic PYLARIFY grow a performance. are over We of

a and market global benefits FLYCARDO that of commercial questions piece, lead GE sizable with they of I'll on that spec. specific of Rebidium. It will to agent. in about. talking agent committee. are There the We MPI number the rights. PET the defer a steering with a that the market has -- as certainly is cardiac large But are On in is be imaging GE overall. sizable joint market Naturally, GE given commercialization the them opportunity studies the join work is

imaging milestones, U.S. as we're continue will excited royalties PET marketplace, royalties and in for to innovative of agent well is the relevant we receive the tier the as another that to double-digit Overall, U.S. outside mid-single-digit on sales come to

Operator

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

have and disconnect, now wonderful You day. a may

Lantheus (LNTH) 6 Nov 242024 Q3 Earnings call transcript