Lantheus Q1 2025 Earnings Report

Lantheus EPS Results

• Actual EPS: $1.53
• Consensus EPS: $1.64
• Beat/Miss: Missed by -$0.11
• One Year Ago EPS: $1.69

Lantheus Revenue Results

• Actual Revenue: $372.76 million
• Expected Revenue: $377.37 million
• Beat/Miss: Missed by -$4.60 million
• YoY Revenue Growth: +0.80%

Lantheus Announcement Details

• Quarter: Q1 2025
• Date: 5/7/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 7, 2025
• Conference Call Time: 8:00AM ET

Lantheus (NASDAQ:LNTH) develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide. It provides DEFINITY, an injectable ultrasound enhancing agent used in echocardiography exams; TechneLite, a technetium generator for nuclear medicine procedures; Xenon-133, a radiopharmaceutical gas to assess pulmonary function; Neurolite, an injectable imaging agent to identify the area within the brain where blood flow has been blocked or reduced due to stroke; Cardiolite, an injectable Tc-99m-labeled imaging agent to assess blood flow to the muscle of the heart; and PYLARIFY, an F 18-labelled PSMA-targeted PET imaging agent used for imaging of PSMA positive-lesions in men with prostate cancer. The company also offers Automated Bone Scan Index that calculates the disease burden of prostate cancer by detecting and classifying bone scan tracer uptakes as metastatic or benign lesions using an artificial neural network; RELISTOR for opioid-induced constipation; and aPROMISE, an artificial intelligence medical device software; and PYLARIFY AI, an AI-based medical device software to perform quantitative assessment of PSMA PET/CT images in prostate cancer. In addition, it develops 1095, a PSMA-targeted iodine-131-labeled small molecule; PNT2002, a radiopharmaceutical therapy to treat mCRPC; PNT2003, an SSTR therapy that treats patients with SSTR-positive neuroendocrine tumors; MK-6240, a F 18-labeled PET imaging agent that targets Tau tangles in Alzheimer's disease; LNTH-1363S, an fibroblast activation protein, alpha targeted, copper-64 labeled PET imaging agent; and flurpiridaz used to assess blood flow to the heart;. It has collaboration agreements with GE Healthcare; NanoMab Technology Limited; Curium; RefleXion Medical, Inc.; POINT; Regeneron Pharmaceuticals, Inc; and Ratio Therapeutics LLC. The company was founded in 1956 and is based in Bedford, Massachusetts.

Lantheus Q1 2025 Earnings Call Transcript

Key Takeaways

• The company is acquiring Evergreen Theranostics and Life Molecular Imaging to boost its radiopharmaceutical manufacturing, discovery engine and Alzheimer’s PET imaging portfolio, while divesting its legacy SPECT business to Shine Technologies to streamline operations.
• Polarify generated $258 million in Q1 sales, with volume growth offset by low-single-digit price declines and transitional Medicare mean unit cost reimbursement, and DEFINITY ultrasound contrast sales reached $79 million.
• Its pipeline advanced as MK6240 met pivotal endpoints with an NDA planned for Q3 2025 and launch in 2026, NAV remains on track for a 2026 NDA, and the theranostic pair OCTEVI/PNT2003 is targeted for 2026.
• Full-year 2025 guidance calls for $1.55–1.585 billion in revenue and $6.60–6.70 in adjusted EPS, reflecting flat to low-single-digit Polarify growth and increased R&D spending of about 7.5 percent of revenue.
• The company ended Q1 with $938.5 million in cash and an undrawn $750 million revolver, underpinning its disciplined capital allocation to advance the pipeline and return value to shareholders.

Presentation

[Operator]

Good morning. Welcome to Lantheus First Quarter twenty twenty five Conference Call. All lines have been placed on mute. This call is being recorded and a replay will be available in the Investors section of the company's website approximately two hours after the completion of the call and will be archived for at least thirty days. I'll now turn the call over to Mark Kanarney, Vice President of Investor Relations.

[Operator]

Mark?

[Mark Kinarney, VP - Investor Relations at Lantheus]

Thank you. Good morning. With me today are Brian Markison, our CEO Paul Blanchfield, our President Bob Marshall, our CFO and Amanda Morgan, our Chief Commercial Officer. We will begin with prepared remarks and then take your questions. This morning, we issued a press release, which was furnished to the SEC under Form eight ks reporting our first quarter twenty twenty five results.

[Mark Kinarney, VP - Investor Relations at Lantheus]

The release and today's slide presentation are available in the Investors section of our website. Any comments made could include forward looking statements. Actual results may differ materially from these statements due to a variety of risks and uncertainties, which are detailed in our SEC filings. Discussions will also include certain non GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is included in the Investors section of our website.

[Mark Kinarney, VP - Investor Relations at Lantheus]

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

[Brian Markison, CEO & Director at Lantheus]

Thank you, Mark, and good morning, everyone. Before I dive into my prepared remarks, I'd like to note our press release from last evening, where we announced our plans to divest our spec business to Shine Technologies. I would like to extend my heartfelt thanks to the incredible team that has been with the company from the very beginning and has played a vital role in shaping Lantheus into what it is today. In 2025, we've been laying the foundation for the next chapter of our business. We announced two acquisitions in the first quarter, Evergreen Theranostics and Life Molecular Imaging, both are designed to fuel our radiopharmaceutical leadership and sustain long term growth.

[Brian Markison, CEO & Director at Lantheus]

We closed on Evergreen in early April and expect to close the LMI acquisition in the coming weeks. And as I mentioned, we also announced an agreement to vest our spec business. Collectively, these transactions accomplish a number of objectives. First, they had immediate revenue growth drivers that complement our business and diversify our revenue. Second, they had exciting programs in late and early stage development.

[Brian Markison, CEO & Director at Lantheus]

Third, they had key capabilities, both people and infrastructure that will enable the company to deliver novel programs from bench to clinic and ultimately patients. And finally, they streamline and help focus our organization. This year, we are focused on integrating the Evergreen and LMI businesses and finalizing the divestment of our SPECT business. With our strong cash position and disciplined capital allocation strategy, we are well positioned to continue investing in our capabilities, advancing and selectively expanding our pipeline and returning value to shareholders.

[Paul Blanchfield, President at Lantheus]

With that, I'll turn the call over to Paul to give an operational and strategic update. Thank you, Brian. I'm pleased to share more about our recent developments. We believe the acquisitions of Evergreen and LMI will strengthen our radio diagnostic and therapeutic capabilities, while expanding our commercial portfolio and pipeline, ultimately enhancing our long term growth potential. Evergreen enhances our capabilities across the entire value chain with scalable radiotherapeutic manufacturing infrastructure, an early stage discovery engine, and an expanded pipeline, including OCTEVI, a registrational stage PET imaging agent targeting neuroendocrine tumors.

[Paul Blanchfield, President at Lantheus]

Evergreen Springfield, New Jersey site and dedicated team will enable us to manufacture our own clinical stage radiotherapeutics, improve development timelines, and accelerate our pipeline. We also expect to make further investments in this facility and team to enhance our radio diagnostic expertise and process development capabilities. LMI will provide Lantheus with a commercial radio diagnostic Alzheimer's franchise, a talented team, and NeuroSeq, a globally approved F-eighteen PET imaging agent used to detect beta amyloid plaques in patients at risk of Alzheimer's disease. We believe that LMI and Lantheus' combined capabilities will support NeuroSeq's continued growth in the beta amyloid radiodiagnostic market and create a scalable and differentiated platform from which to launch all of our Alzheimer's disease PET imaging agents. Alzheimer's disease affects over fifty million people globally and remains an area of significant unmet need for patients, caregivers, providers, and broader society.

[Paul Blanchfield, President at Lantheus]

We believe the Alzheimer's radio diagnostic market is poised for significant growth, driven by currently approved therapeutics and over 100 candidates in clinical development targeting beta amyloid or tau. When approved, these therapeutics are expected to increase the need for accurate and timely diagnosis, staging, patient selection, and monitoring of disease, areas we believe PET imaging is uniquely positioned to address. As such, we believe The US AD Radio Diagnostics total addressable market could grow to more than $1,500,000,000 by the end of the decade and $2,500,000,000 by the mid-2030s. And we are positioning ourselves to lead in this market with the potential for multiple differentiated pet agents targeting beta amyloid or tau. Finally, yesterday, we announced an agreement to divest our spec business to Shine Technologies.

[Paul Blanchfield, President at Lantheus]

The spec business has been a foundational part of Lantheus' leadership in nuclear medicine dating back to our days as New England Nuclear. We believe now is the right time to divest the spec business as we continue to focus on pet radio diagnostics, microbubbles, and radiotherapeutic agents. Shine's isotope production capabilities make them a natural owner of this business, and they are committed to investing in and growing the business. We are grateful to the generations of colleagues who have brought our SPECT products to patients and are confident that the business and these colleagues will be in good hands with SHINE. We expect the transaction to close by the end of this year.

[Paul Blanchfield, President at Lantheus]

With that, I'll turn the call over to Amanda to provide a commercial update.

[Amanda Morgan, Chief Commercial Officer at Lantheus]

Thank you, Paul. I'm pleased to share the progress on our commercial portfolio. Polarify sales for the first quarter were $258,000,000 with year over year volume growth offset by low single digit decline in net price. We have successfully executed our strategy to secure the vast majority of Polarify revenue through strategic partnerships with key hospitals and freestanding imaging centers. However, with the expiry of POLARI five pass through status and the implementation of mean unit cost payment for Medicare, FFS, in the hospital outpatient setting, we did experience what we believe will be temporal competitive disruption among smaller, non contracted sites.

[Amanda Morgan, Chief Commercial Officer at Lantheus]

We plan to maintain our market leadership and will continue to work through these competitive pressures and grow volume and revenue in 2025. We will achieve this by broadening our contracting efforts while maintaining our pricing premium, expanding product availability in both earlier and later calibration times, educating on Polarify's clinical and commercial differentiation, and continuing to provide superior customer service. By 02/1930, we anticipate the PSMA PET addressable market will exceed $3,500,000,000 The key drivers for this growth include the rising incidence and prevalence of the disease, continued conversion of conventional imaging, broader adoption among lower risk patients, and the expansion of the PSMA targeted radioligand therapies. We are pleased with the FDA's recent approval of Plavicto in the pre chemotherapy MCRPC setting as supported by the PSMA-four trial results and expect this indication to further increase demand for PSMA PET imaging agents such as Polarify. Notably, Plavicto's label now references the use of any FDA approved PSMA PET product for patient selection.

[Amanda Morgan, Chief Commercial Officer at Lantheus]

We believe there is a market expansion opportunity with our Phase four MIRROR study in patients with favorable intermediate risk disease. With this data, our goal is to support future updates to NCCN and SNMMI guidelines to include the use of PSMA PET with Polarify in this patient population, which could in turn expand the addressable market. DEFINITY remains the number one utilized ultrasound enhancing agent with more than twenty years in the market and more than 20,000,000 echocardiograms performed. In the first quarter of twenty twenty five, DEFINITY achieved approximately $79,000,000 in sales, even with the return of competitive supply to The U. S.

[Amanda Morgan, Chief Commercial Officer at Lantheus]

Market. With our two number one imaging agents in Polarify and DEFINITY, we are pleased to continue to serve as the partner of choice for our customers and look forward to the expansion of these relationships with the potential to add NeuroSeq in 2025, PNT2003, OCTEVI, and MK6240 in 2026, as well as NAV4694 in 2027. I will now turn it back to Brian to discuss our development pipeline.

[Brian Markison, CEO & Director at Lantheus]

Thank you, Amanda. We continue to advance our diverse catalyst rich pipeline with a focus on assets that are first or best in class in oncology, neurology, and cardiology. We believe our neurology pipeline of MK-six thousand two hundred forty and NAV combined with LMI's NeuroSeq and PI-two thousand six hundred twenty positions us well to support the diagnosis, staging, patient selection of therapy, and monitoring of patients with Alzheimer's disease. Our portfolios are highly complementary, and we believe LMI's established commercial franchise provides a platform that will enable us to quickly realize the value of these assets. We recently announced that MK-six thousand two hundred forty, our next generation tau imaging agent, met its primary endpoints in two pivotal studies assessing its sensitivity and specificity.

[Brian Markison, CEO & Director at Lantheus]

We plan to submit a new drug application to the FDA in the third quarter of this year, and if approved, look forward to bringing MK-six thousand two hundred forty to the market in 2026. Additionally, we remain on track to submit an NDA for NAV in 2026 as well. We have strengthened our oncology portfolio with the acquisition of Evergreen's Octavy, which has the potential to create a theranostic pair with PNT2003, a registrational stage radio equivalent therapeutic candidate for SSTR positive gastroenteropancreatic neuroendocrine tumors or JEPNETs. PNT2003, which has the potential to be the first FDA approved radio equivalent to Lutathera, is planned to launch in 2026, pending FDA approval and positive resolution to patent litigation, which is ongoing. Turning to some of our earlier oncology assets, LNTH2503, was acquired with Evergreen, is a potentially best and first in class theranostic pair targeting the CCK2R receptor.

[Brian Markison, CEO & Director at Lantheus]

We currently have the diagnostic agent paired with Gallium sixty eight in Phase II development, and we are excited to report the Phase one therapeutic trial with lutetium-one hundred seventy seven is now recruiting patients in Europe. Our theranostic pair for LNTH2401 and two thousand four hundred and two includes a Gallium-sixty eight imaging agent with a lutetium therapeutic agent targeting GRPR, which is a receptor highly expressed in several tumor types, particularly in prostate cancer. We believe there is a potential for this asset to serve independently and in combination with PSMA, since GRPR and PSMA expression are frequently negative correlating. It is important to note that in early disease, GRP R expression is quite similar to PSMA. The diagnostic agent two thousand four hundred one is already in Phase II development, and we remain on track to submit an IND for two thousand four hundred two, the therapeutic candidate.

[Brian Markison, CEO & Director at Lantheus]

LNTH2403 is a preclinical therapeutic agent targeting LLRC15, which is strongly expressed on multiple malignancies, including head and neck, breast, lung, and pancreatic cancers. We are initially focusing on osteosarcoma, for which the FDA has granted both orphan drug and rare pediatric disease designations. Osteosarcoma is a malignant bone tumor that primarily develops in children and teenagers, and is the most common childhood bone cancer with around one thousand new cases diagnosed annually in The US. Finally, for PNT2022, the Phase three SPLASH study recently reached one hundred percent of pre specified overall survival events. The results were comparable to the previously purported forty six percent and seventy five percent readouts and remain confounded by patient crossover within the study.

[Brian Markison, CEO & Director at Lantheus]

While we continue to work closely with a partner Eli Lilly to review the full dataset, we do not plan to pursue an NDA or further invest in this asset at this time. I will now turn the call over to Bob.

[Robert Marshall, CFO & Treasurer at Lantheus]

Thank you, Brian, and good morning, everyone. I will provide highlights the first quarter twenty twenty five financials, focusing on adjusted results with comparisons to the prior year quarter unless otherwise noted. Turning to the details. Consolidated net revenue for the first quarter was $372,800,000, an increase of 0.8%. Radiopharmaceutical oncology, currently Polarify, contributed 257,700,000.0 of sales, flat with the prior year.

[Robert Marshall, CFO & Treasurer at Lantheus]

Precision Diagnostic revenue of 104,400,000.0 was flat year over year. Highlights include DEFINITY at 79,200,000.0, 3 point 5 percent higher, along with Technolite revenue of 19,700,000.0, down 9.2% due to a brief moly supply issue in March now resolved. Lastly, strategic partnerships and other revenue was 10,700,000.0, up 65.1% due to the continued contribution from use of our investigational asset MK6240 in third party clinical trials, up 10.4%, as well as from the recognition of the first sale milestone from VORCADO of $2,000,000 Gross profit margin for the first quarter was 67%, a decrease of 180 basis points. The decrease is attributable to impacts at margins stemming from our strategic partnership contracting initiatives, the annualization of twenty twenty four PMF network and related supply additions, unfavorable PMF network dose volume mix, as well as under absorption of overhead due to the moly supply shortage late in the quarter, partially offset by favorable volumes for Polarify and DEFINITY. Operating expenses at 28.3% of net revenue were 147 basis points higher than the prior year rate and slightly higher than the previously guided spending levels.

[Robert Marshall, CFO & Treasurer at Lantheus]

As noted earlier this year, increases in operating expenses reflect investments made to support several growth and efficiency initiatives. Notably, research and development increased 251 basis points to 7.3% of net revenue in support of a number of late and early stage development programs. It is worth noting that the company expensed nearly 3,000,000 of business development expenses, largely legal and other third party, in support of yesterday's announced divestiture of our spec business to Shine. We do not adjust our management p and l for transaction related expenses when the deal itself is not signed within the same quarter as incurred, thereby inflating current period operating expense. Operating profit for the quarter was 144,300,000.0, a decrease of 7.1%.

[Robert Marshall, CFO & Treasurer at Lantheus]

Other income and expense at 4,600,000.0 of income is a result of interest income offset in part by interest expense on our existing debt. Total adjustments in the quarter were 52,300,000.0 of expense before taxes. Of this amount, 21.2 and 8,000,000 of expense is associated with noncash stock incentive plans and acquired intangible amortization, respectively. 14,900,000.0 is a result of unrealized losses tied to our equity investments in Perspecta and Radiopharm Therapeutics. Five point four million is related to RM2 milestones and the remainder relating to acquisition integration and other nonrecurring expenses.

[Robert Marshall, CFO & Treasurer at Lantheus]

Our effective tax rate was 26.5%. The resulting GAAP net income for the first quarter was $72,900,000 and $109,500,000 on an adjusted basis, a decrease of 7.5%. GAAP fully diluted earnings per share for the first quarter were $1.02 and $1.53 on an adjusted basis, a decrease of 9.5%. Now turning to cash flow. First quarter operating cash flow totaled 107,600,000.0, down 19,700,000.0 from q one last year as working capital, particularly DPO metrics, have normalized from the post SAP implementation and requirement.

[Robert Marshall, CFO & Treasurer at Lantheus]

Capital expenditures totaled 8,700,000.0, 4 hundred thousand dollars lower. Free cash flow, which we define as operating cash less capital expenditures, was $98,800,000, 20 point 1 million lower for the previously described reasons. During the quarter, the company invested an additional 5,000,000 in RAD equity and deposited $50,000,000 related to the Evergreen acquisition, which closed on April 1. Taken together, cash and cash equivalents net of restricted cash were $938,500,000 at the end of q one. We have access to our $750,000,000 undrawn bank revolver and are comfortable with our very strong liquidity position.

[Robert Marshall, CFO & Treasurer at Lantheus]

We are actively monitoring the recent tariff activity and are working closely with our partners and industry groups to assess any potential impact and advocate for the continued exceptions granted to pharmaceuticals and radioisotopes. This is an evolving situation, but at this juncture, direct impact to our business remains de minimis. Turning now to our updated interim corporate guidance for the full year 2025. In anticipation of closing the LMI transaction in the next weeks, we are providing an interim view to the business, but we'll update a consolidated view of 2025 after we have closed that transaction. That said, our view of Clarify performance for the balance of the year has come into sharper focus.

[Robert Marshall, CFO & Treasurer at Lantheus]

We are updating the implicit Clarify range embedded in the previously guided standalone Lantheus full year view of revenue. That said, we are shifting our implicit Polarify year over year range to flat to low single digit percent growth for the full year versus our prior view of low single digit to mid single digit growth. Commentary on all other Lantheus products remains the same. Evergreen adds approximately 10,000,000 of revenue for the balance of the year and reduces adjusted EPS by approximately 25¢, in line with prior dilution guidance. Taken together, revenue is now expected to be 1.55 to 1,585,000,000.000, ahead of adding in the potential LMI revenue contribution, demonstrating the power of our strategic intent to diversify revenue streams.

[Robert Marshall, CFO & Treasurer at Lantheus]

For adjusted EPS modeling purposes, we continue to expect low single digit dilution from the combined addition of Evergreen and LMI, assuming consistent share count. The divestiture of the spec business should not have any impact on 2025 revenue or earnings as is expected to close toward the end of the year, but this strategic move should unlock consolidated revenue growth and gross margin expansion in the future. Additionally, the company advanced several R and D projects with positive ROI metrics not previously considered in the prior guide. Therefore, r and d should be approximately 7.5% of revenue, up approximately a hundred basis points for the full year. For now, by only incorporating our Clarify update, r and d investments, and including Evergreen, we now see adjusted EPS in the range of $6.60 to $6.70 versus the prior guide of $7 and $7.20.

[Robert Marshall, CFO & Treasurer at Lantheus]

We do expect LMI contribution to the company to be accretive to revenue and earnings immediately. We look forward to providing more specifics after the LMI closing. With that, I'll turn the call back over to Brian.

[Brian Markison, CEO & Director at Lantheus]

Thank you, Bob. We are diversifying our revenues and setting up the business for continued long term growth. We are driving both commercial and clinical success through our leading diagnostic agents and our diversified pipeline. We are committed to advancing our position as the leading radiopharmaceutical focused company with both new clinical developments and inorganic growth acquisitions, remaining the partner of choice for nuclear medicine departments and freestanding imaging centers, delivering sustainable growth, creating long term value for our shareholders and bringing innovative products to patients who need them. With that, we are ready to take your questions.

[Brian Markison, CEO & Director at Lantheus]

Operator, please proceed.

[Operator]

Our first question comes from the line of Anthony Petrone from Mizuho Financial Group.

[Anthony Petrone, Managing Director at Mizuho Financial Group]

Thanks and good morning everyone. Hope everyone's well. Maybe start with Polarify trends in the quarter. Obviously, good detail in the prepared remarks, but maybe just a little bit more on the competitive dynamics you're seeing out there. Certainly by our math, you're at a fair amount of share shift here through the March ending quarter.

[Anthony Petrone, Managing Director at Mizuho Financial Group]

So a little bit on the Polarify competitive dynamics, and I'll have one quick follow-up on gross margin.

[Brian Markison, CEO & Director at Lantheus]

Okay, Anthony. Thanks. We got the questions. I think Paul will lead it off on the

[Brian Markison, CEO & Director at Lantheus]

reply. Paul?

[Paul Blanchfield, President at Lantheus]

Yes. Thanks, Anthony. Good morning.

[Paul Blanchfield, President at Lantheus]

So I think in the first quarter, I'll add to what we and Amanda provided in the prepared remarks. First, we were successful in securing the vast majority of our revenues through the strategic partnerships. Those, as we've stated before, have largely been with our longstanding and established hospitals and freestanding imaging centers, many of them who have been with us since launch. Those partnerships were key to stabilizing the business, especially amidst the transition to mean unit cost from a Medicare fee for service reimbursement perspective. They're also going to serve us incredibly well as we launch a broader portfolio.

[Paul Blanchfield, President at Lantheus]

In the quarter, we did experience short term competitive disruption, specifically among the smaller non contracted sites due to MUC related reimbursement, price, as well as product availability. These smaller sites have been more recent adopters of PSMA PET imaging, and as a result, they have been outpacing the broader PSMA PET market growth. We continue to work through competitive pressures and some of these market dynamics, But we do plan to maintain our market leadership to grow volumes and revenues and to expand our contracting efforts with some of these higher growth later adopter accounts, as well as expanding product availability to ensure that we can continue to meet the growth and ensure our growth grows closer to that of the broader market.

[Anthony Petrone, Managing Director at Mizuho Financial Group]

That's helpful. Maybe if there's a And could be Yep, go ahead.

[Brian Markison, CEO & Director at Lantheus]

Go ahead. Your follow-up question?

[Anthony Petrone, Managing Director at Mizuho Financial Group]

All good. Thanks, Brian. Maybe just the spec sale caught us a little bit by surprise. So maybe just quickly on the rationale to exit spec now. And again, on the positive end here, I know you had the MK 6,240 headline readout, which was positive.

[Anthony Petrone, Managing Director at Mizuho Financial Group]

When can we expect to see that data? Thanks.

[Brian Markison, CEO & Director at Lantheus]

Yes, Cindy, thank you. Well, MK question on the readout of the data, right now, we're like all hands on deck to file the new drug application. And then in the not too distant future, we're going to be happy to showcase the data because it is quite positive, which gives us a lot of confidence going into the submission. On the sale of the spec business, I think it's important to note that if you look at where we're going, our recent acquisitions, our pipeline, molecular imaging, theranostic pairs, radioligand therapies, The spec business has been a big anchor for us, but not a core to our future growth. So what we're doing is we're looking to streamline, unlock value, partner that business with a party like Shine Technologies that is willing to invest further in it.

[Brian Markison, CEO & Director at Lantheus]

And we will also remain very close to Shine as they proceed and grow that business. Bob, do you want to add to that a little bit?

[Robert Marshall, CFO & Treasurer at Lantheus]

Yeah, I guess what I would add is maybe sort of like how you think about what this means to the business in terms of, you know, the it totals about a hundred and 15 to a hundred and 20,000,000 of revenue. It's been a very stable contributor. So that's what I mean when you know, as a growth factor, when that comes out of the business, it it sort of helps to accelerate the best balance of our portfolio, which we do think can continue to grow and expand. The gross margin implications, you know, it's a couple hundred basis points of benefit as we look forward because the business has a gross margin profile that is much below the company's current average. So, again, as Brian noted, this does help to unlock additional value while that business then has the potential to grow in Shine's hands.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Roanna Reese from Leerink Partners.

[Roanna Ruiz, Senior Managing Director, Biotechnology Analyst at Leerink Partners]

Hey, morning everyone. So I was curious, I noticed you tightened your fiscal twenty five guidance a bit. Could you talk a bit more about what drivers could put you on either the low end or the high end of that guidance by year end? And just tagging on a quick specs divestiture question, I assume it probably frees up certain resources and was curious, where would you pivot those in terms of contributing to the rest of the commercial or development pipeline?

[Brian Markison, CEO & Director at Lantheus]

Roana, could you do me a favor and repeat the second half of that question? I'm not sure I completely got it.

[Roanna Ruiz, Senior Managing Director, Biotechnology Analyst at Leerink Partners]

Sure. With the SPECT business divestiture, I was assuming that you were going to free up certain resources or capital, things like that. Where would you wanna use those in terms of either the pipeline or commercial efforts?

[Brian Markison, CEO & Director at Lantheus]

Got it. I appreciate the clarification. Bob, you wanna start off and then Paul will pick it up?

[Robert Marshall, CFO & Treasurer at Lantheus]

Yeah. I'll take it from a guidance perspective. So, Ron, I, you know, appreciate the question. We've narrowed the range, but we're now kinda coalescing around the bottom half of the prior range, and it really is about Polarify. So we're still staying when basically what we had previously guided.

[Robert Marshall, CFO & Treasurer at Lantheus]

It's just that, you know, q one was extremely informative on how the competitive, environment would, manage Polarify as we came off, pass through. Our original view actually was a pretty wide range that contemplated a range of outcomes with the first half being flattish and then with low single to mid single digit to mid single to high single digit type, of an outcome. So all we've done is here to narrow this range to sort of to to be at the bottom so we're taking, like, sort of the bottom half of that original range. The key thing here, though, is we do still expect healthy dose volumes throughout the balance of the year. And, you know, that is, why we landed where we did.

[Paul Blanchfield, President at Lantheus]

And, Rona, maybe on your SPECT question. I think we would characterize it really as a couple things. Right? And I'll expand on kind of what Brian and Bob said earlier. But one, this is really about organizational focus.

[Paul Blanchfield, President at Lantheus]

We are ruthlessly prioritizing key growth areas like pet radio diagnostics and radio, therapeutics, as well as our DEFINITY microbubbles as future growth drivers. So I think it just enables the broader organization to really focus its efforts there. There has naturally been limited investment in the development programs of SPECT. That business, is many decades mature. And similarly, a commercial perspective, it's got relatively little complexity working with just a few key partners.

[Paul Blanchfield, President at Lantheus]

We're incredibly excited for the Shine team to take on those capabilities and to further invest in that business. And so this is really around who's the best owner and what our organizational focus needs to be to drive continued growth and value creation. And then lastly, there's the financial benefits that Bob mentioned of just it's been a relatively stable business with margins below the company average. And so this really allows us to unlock the full potential of our financial capabilities and then focus the organization wholeheartedly on our future in pet diagnostics, radiotherapeutics and microbubbles.

[Brian Markison, CEO & Director at Lantheus]

Yeah, and Rojana, I think it's important to note that a number of our colleagues will be going with the spec business to shine. So if you think about the bigger picture strategically, we're onboarding a team from Evergreen from life molecular imaging with phenomenal capability and molecular imaging and radio diagnostics and therapeutics. And quite frankly, a legacy business that we're not really nurturing and paying that much attention to as we grow the rest of the business is essentially coming out. So moving parts, some leaving unfortunately, and some coming in fortunately, and it's really a natural transition of this business, all in line with our strategic intent.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Richard Newitter from Truist Securities.

[Richard Newitter, Managing Director at Truist Securities]

Hi, thanks for taking the question. I wanted to maybe just ask on the acquisitions. Just looking at 2026, because that's going to be the first full year where these acquisitions will be in there. I think your prior guidance had assumed or your prior comments was low single digit percent dilution from the combination of LMI and Evergreen. Is that still the right way to think about it?

[Richard Newitter, Managing Director at Truist Securities]

It sounds like you think LMI is going to be accretive right out of the gate. So I'm just wondering if you can give us some update on that. And then also, think last call, you had said you expect 2026 with acquisitions to be a double digit revenue growth potential year. Is that still in the cards as well? Thank you.

[Brian Markison, CEO & Director at Lantheus]

Rich, thanks for the question. That is definitely in the cards, and I appreciate you asking. And then Bob, you want to take the rest of the answer?

[Robert Marshall, CFO & Treasurer at Lantheus]

Yeah. So, exactly. The guide, for the dilution was low single digit, but combination of both Evergreen and, LMI. That guide also contemplated sort of mid year sort of closing on the deals. We closed early, and expect on Evergreen and expect to, you know, to close on LMI in the next weeks.

[Robert Marshall, CFO & Treasurer at Lantheus]

That all being said, yes. But, you know, the 25¢ that they've given to the midpoint of what we had said previously, which at $7.10 is mid single digit, that does include about 50 basis points of additional interest income lost. But at the same time, I do fully expect that we would get to low single digit dilution off that seven ten number once we've closed on LMI as well. And and then we and then update our guidance, after we've closed to take that into consideration, both revenue and earnings.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Matt Taylor from Jefferies.

[Matthew Taylor, Managing Director at Jefferies]

Hi, thank you for taking

[Matthew Taylor, Managing Director at Jefferies]

the question. So I wanted to follow-up on some commentary from last quarter. You had talked about in 2026 with the combination of your base business and these acquisitions of Evergreen and LMI being able to sustainably grow in the double digits. And I guess I just wondered if there's any change to that thinking positive or negative and maybe you could give us any color around the quantum within the double digits you could grow beyond this year?

[Brian Markison, CEO & Director at Lantheus]

Yes. Thanks, Matt. I appreciate the question. On the quantum, I think it's a little early on that front, but on double digits, it's yet. So let me tell you what we're looking at, right?

[Brian Markison, CEO & Director at Lantheus]

It's the potential launch of OCTEVI with combined the potential launch of 02/2003, the potential launch of MK-six thousand two hundred forty, the full annualization of Nuroseek and our plans to grow it. But more importantly, perhaps is the anchored growth with Polarify and DEFINITY, which we plan to continue. Guys, did I leave anything out? No. So that's what we're looking at.

[Brian Markison, CEO & Director at Lantheus]

That's what we're excited about. And that's anchoring our double digit growth for 2026.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Paul Choi from Goldman Sachs.

[Analyst]

Good morning. This is Daniel on for Paul. We have two questions. First is like, are you still thinking that there's a chance that part of this Pilarify revenue would switch to ASP pricing this year? And what about the trends for 2026 and beyond?

[Analyst]

The second question is that after the LMI deal closed, what's the current trend of the PET scan market growth in the Alzheimer's scan market? Thank you.

[Brian Markison, CEO & Director at Lantheus]

Okay, so on which one do you want to take first? The Alzheimer's or the clarify? Why don't

[Brian Markison, CEO & Director at Lantheus]

I touch on the Polarify? Why don't I touch on the PET scan Alzheimer's, and then Amanda can maybe touch on the 2025 and future long term growth of the PSMA PET market.

[Brian Markison, CEO & Director at Lantheus]

Right. And before you do that, we are in constant discussions with CMS, and we are working with them. And could ASP emerge rather soon? Yes. But, you know, look, it's a little murky down there.

[Brian Markison, CEO & Director at Lantheus]

So, I can't really predict the future. Amanda and the team are really working hard on it. Amanda, do want to comment on that briefly and then we'll switch it over to Paul?

[Amanda Morgan, Chief Commercial Officer at Lantheus]

Yeah, listen, we're encouraged by our conversations. It is a fluid conversation. You know, what I will share is that the team that we've been communicating with remains the same team at CMS. And as of yet, we've not seen impacts due to recent administration changes.

[Analyst]

Great. All right. Paul?

[Paul Blanchfield, President at Lantheus]

So maybe just long term clarify and the PSMA market. I think we remain very excited about the long term potential.

[Paul Blanchfield, President at Lantheus]

We've highlighted our addressable market potential in 02/1930, as being $3,500,000,000 I think that continues to come into, greater focus and affirmation with the Plavicto data as an example and their approval with PSMA four. And so I think we're very excited about the long term potential of PSMA PET. From a pricing perspective near term, right, strategic partnerships are going to anniversary largely in the first half of this year, which will set us up, for more support in the long term growth. And so I think we remain optimistic about the overall PSMA PET market and the long term potential for Polarify, especially as we broaden the portfolio to be the go to partner for hospitals and freestanding imaging centers. We have the potential to have the largest and broadest innovative portfolio to work with those, sites to expand our strategic partnerships and continue to support that continued growth.

[Paul Blanchfield, President at Lantheus]

And that includes, Alzheimer's. Clearly, Life Molecular remains a separate organization under Life Healthcare today. But just monitoring the trends of overall claims data as a result of Alzheimer's scans, specifically for beta amyloid, but increasingly for tau. We see very robust growth, in that marketplace. And when we think combining the terrific team and capabilities of LMI with that of Lantheus and our deep f 18 expertise and experience with customers, we're very optimistic about the opportunity in Alzheimer's with NeuroSeq as well as MK6240, now 04/1994 and PI2620 to have a broad, deep portfolio in Alzheimer's that can be a very meaningful franchise for us.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Larry Solow from CJS Securities Inc.

[Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities]

Good morning. Thanks for taking the question. First question, just on the gross margin and a little bit of higher cost goods there. You mentioned that the issue with Technolite, was gross margin impacted at all just by I guess, the overall price discounting on PLAARIFI and is PLAARIFI pricing kind of in line with how you expect it to be so far?

[Robert Marshall, CFO & Treasurer at Lantheus]

Yes, I mean, particularly when

[Robert Marshall, CFO & Treasurer at Lantheus]

I gave

[Robert Marshall, CFO & Treasurer at Lantheus]

the sort of the explanation for the quarter on a year over year basis, that particularly was, you know, that does have an impact from the impacts from margin from the strategic partnerships and so forth. But, you know, there were a handful of other things that I mentioned in terms of cost, but when you think about maybe relative to what we had expected, the real drivers from what our original expectation sort of, you know, sixty seven point five to '68, why was it, you know, not there? It really kind of came down to just a couple of the different factors. Really, one, freight costs were higher, but also the dose volume mix in our PMF network. And what that does is, like, you know, depending on the mix of Clarify where and which of the different networks, they're not all the same.

[Robert Marshall, CFO & Treasurer at Lantheus]

So that mix did cause some of the drive some of the from expectations. But, again, going back to the to the pricing aspect, you know, we still remain at a price premium, to our competitors. And, so from an expectation perspective, that was sort of what we had expected.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Yuan Xu from B. Riley.

[Yuan Zhi, Managing Director at B.Riley Securities]

Good morning. Thank you for taking our questions. Maybe to answer this question a bit differently. Can you please comment more on the impact of this long term contract you signed for clients in that bucket? Do they grow in volume or clarify faster than others?

[Yuan Zhi, Managing Director at B.Riley Securities]

Then if we compare the growth rate across academic centers and the community centers, is there a difference in terms of growth and the market penetration? Thank you.

[Paul Blanchfield, President at Lantheus]

Yuan, thank you for the question. Think it's very astute. There is certainly a difference in the growth and utilization across the marketplace. We're coming up on four years since approval and launch. We saw some very early adoption amongst leading academics and large scale freestanding imaging centers.

[Paul Blanchfield, President at Lantheus]

The utilization of Polarify and quite honestly, other PETCT agents, those have been early adopters. And so their utilization rates are far higher than say other parts of the market. And in some cases that has led to patient wait times. And whereas some of the smaller non contracted accounts are growing higher than the overall market because they've been later adopters and are earlier in their adoption curves. And so I do think we see a difference in overall utilization.

[Paul Blanchfield, President at Lantheus]

Our focus had been to secure the vast majority of Polarify revenues through strategic partnerships. We believe we've been very successful with that. And our current evolution is to now increasingly focus on those smaller non contracted sites that present more near term growth opportunities. And so to some extent, this really comes down to mix and our steadfast focus on securing the vast majority of the business and now evolving to focus on expanding our contracts with smaller accounts to expanding our out the door times to meet growth where it is for those accounts. And that's what we're busy doing on a regular basis now.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Justin Walsh from Jones Trading.

[Justin Walsh, Director & Research Analyst at Jones Trading]

Hi, thanks for taking the question. Can you discuss how you view the long term opportunity for the GRPR targeting imaging and therapy in prostate cancer? Specifically, I'm wondering if there's expected clinical value for imaging GRPR outside of enabling the therapeutic or if that's the key feature there? And if you'd expect therapeutic use ultimately be in the post the SMA setting.

[Brian Markison, CEO & Director at Lantheus]

Great question. Let me start sort of at the beginning. In early prostate carcinoma, GRPR expression is quite avid and quite similar to PSMA expression. And what we find fascinating about the agent or the target is where one overexpresses, the other could be underexpressing. So, in other words, if you get into later lines of therapy, if PSMA expression is down or depressed, GRPR expression could be quite high, and there could be a fair amount of avidity there for a radioligand therapy.

[Brian Markison, CEO & Director at Lantheus]

The gallium diagnostic agent is in phase two right now, and we're exploring separate fast track opportunities to see if we can bring that to the market earlier. I think there will be an interesting role for the imaging agent in and apart from the therapeutic. And I think with the therapeutic, we're focused right now on getting the IND filed and also getting into the clinic as soon as practical in Phase I. And we think there's going to be a very interesting role because ultimately, these radioligand therapies are not going to be used as single agents. They will be used in combination like any other therapeutic modality in oncology, and we think there'll be additive.

[Brian Markison, CEO & Director at Lantheus]

So there could be a very interesting role, both in very early, mid and late term prostate cancer disease for the therapy and also for the diagnostic.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Kemp Dolliver from Brookline Capital Markets.

[Kemp Dolliver, Director - Research & Senior Analyst at Brookline Capital Markets]

Hi. Thank you. On the smaller accounts in the market for Clarify, are these accounts that are operating essentially on a spot basis, or are they contracted with others? I'm trying to reconcile your position as a premium price product with what looks like a customer base that might be commodity, have a commodity mindset. So can you reconcile that for me?

[Brian Markison, CEO & Director at Lantheus]

Yeah, I think we're looking at it a little bit differently. I think as we have grown our business and match that with our growing PMF network, We have 63 PMFs up and running in the country. And our strategic contracts were designed to partner us for the long term with our highest volume early adopters. And I think what we're seeing is the smaller accounts that now have some capacity were not initially our early focus as we were dealing with the major institutions. So Amanda, do you want to expand on that a little bit?

[Amanda Morgan, Chief Commercial Officer at Lantheus]

Yeah. No. Thanks, Brian. That's exactly right. As we continue to evolve, as Paul shared in his prepared remarks, as we continue to evolve in the market, we are continuing to grow and expand our product availability, and that'll be through our earlier and later calibration times.

[Amanda Morgan, Chief Commercial Officer at Lantheus]

That will enable us to not only partner, as Brian said, with our largest strategic accounts, but also partner with the smaller accounts, so those later adopters that are continuing other uptake of of PSMA PET.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Frances Duvel from TD Securities.

[Analyst]

Hi, this is Frances on for Tara. Can you elaborate on the extent of the MUC based pricing impacts on revenue this quarter compared to other factors like the net pricing impacts? And are you still guiding to the MUC pricing affecting only about ten percent of total patients?

[Paul Blanchfield, President at Lantheus]

Thanks for the question. So, MUC based pricing remains impacting about twenty percent of patients. That is the overlap or intersection, I should say, between Medicare fee for service relative to Medicare Advantage or commercial payers, and then in the hospital outpatient setting. So that's still around twenty percent of kind of patients overall when you look at that. I would say, I think when we look at the quarter and some of the dynamics, we looked at MUC pricing, we looked at competitive pricing, as well as product availability in some cases.

[Paul Blanchfield, President at Lantheus]

Fundamentally, I think it's hard to break down into those three because they ultimately all intersect on the impact of customers, as well as the adoption or growth curves in there. And so I think they all had a bit of an issue. I would say MUC is likely more of a transitory impact as customers understand based on the payment timing of claims from Medicare. It does take them a little bit of time to understand what that looks like. The MUC ASP dynamics coming from CMS, were quite, volatile in the months leading up to January 1 with a number of adjustments to the addendums coming out there.

[Paul Blanchfield, President at Lantheus]

And so I do think it took some time for sites to understand that. We think, you know, sites have a pretty good understanding of their book of business and and that should stabilize over time. And then the continued differentiation and availability of Polarify, plus our broadening portfolio will support our continued growth.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Shay Andy from William Blair.

[Andy Hsieh, Research Analyst at William Blair]

Great. Thanks for taking our questions. So we're curious about your long term view on the Alzheimer's diagnostic market, specifically pertaining to the encroachment of serum based biomarkers for diagnostic purposes. So Biogen on the first quarter call, they mentioned for the potential for blood based markers to potentially supplant the need for PET scans. So I'm just curious if you can comment on that and potentially provide your view there.

[Andy Hsieh, Research Analyst at William Blair]

And a quick follow-up for your 02/1930 PLAIRFI revenue guidance. I understand that PSMA addition opportunity is included and that's reading out later this year. But could you help us understand the growth potential for PSMA DC and some of the FTM-two 25 assets that's moving earlier lines and recently moved to Phase III trials. Thank you.

[Brian Markison, CEO & Director at Lantheus]

All right, so I'll kick it off with the Alzheimer's answer and turn it over to Paul. First on serology, blood based biomarkers, I think they're very important. And I think if you look at the prostate market, you have PSA as a legitimate marker for detection, follow-up, etcetera, for disease. And I would think in AD or Alzheimer's disease, you'd see a similar pattern, hopefully, where people will get screened with serology and then become candidates for a PET scan or molecular imaging. I think when you compare them, there is no comparison, right?

[Brian Markison, CEO & Director at Lantheus]

Molecular imaging gives you quantification, it gives you geography, it gives you correlation to treatment outcome and effect. So none of the serology markers can actually do that. They're not that sensitive, nor are they specific. So if you're looking at specific regions of the brain, for example, with MK6240, and looking at longitudinal follow-up, you're looking at what parts of the brain are mostly affected by the NFTs, serology can never do that, at least in my current lifetime, I think. So while I appreciate comments from others, I think maybe they're not totally informed, but there's still comparison with molecular imaging and serology.

[Brian Markison, CEO & Director at Lantheus]

I think serology is a great tool. It's cost effective. It should be used as a screening mechanism. But if you want to know what's happening inside the brain with Alzheimer's dementia, angiography, follow-up effects of treatment, you really need a molecular imaging scan with beta amyloid and tau. Maybe I'll

[Paul Blanchfield, President at Lantheus]

just add on that and then I'll pivot to the PLAIRIFY piece. 100% agree with what Brian just said. Guess I would just add Andy, when you look at payers looking at roughly mid $30,000 a year therapeutic costs, over multiple years, it's not hard to imagine that as a payer and a physician looks to saying putting on someone to therapy that may cost $100,000 over three years, the desire to not just do a blood test, but to do a couple thousand dollar PET scan, that's quite smart money to really understand the location and extent of disease and to effectively monitor that. And so we think there's a symbiotic relationship between serological markers and imaging, the same way we see with PSA from a serological test and PSMA. I think on your earlier question on the PSMA therapeutic market, I think we may remain very encouraged on not only Novartis' results with PSMA-four, but PSMA addition, which we're optimistic about as well as you said.

[Paul Blanchfield, President at Lantheus]

There are dozens of candidates targeting PSMA from a radioligand therapy, and that really underscores our addressable market view where the scans associated with RLP could go from roughly thirty thousand, I believe, to almost two hundred thousand by the end of the decade. Current RLP patient selection only makes up single digits for PSMA PET use. We think that can expand not only with RLT, but also with antibody drug conjugates and other therapeutics targeting PSMA. And so we think there's continued benefit in the molecular imaging and the ability to find and follow disease, not only with POLARIFI, but with Alzheimer's, as Brian mentioned.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of David Turkaly from Citizens JMP.

[David Turkaly, Research Analyst at Citizen JMP]

Hey, good morning. There was lots of debate heading in about the changes that might happen with the reimbursement and then debates about sort of clients, customers switching. And it sounds like you're saying these smaller centers maybe never used to clarify and now you're going to focus on them. But despite discussions of whether like these images scans might be apples to apples or not, we're just curious if you've seen any evidence of switching either at the large accounts or the small accounts or even on a patient basis so far.

[Brian Markison, CEO & Director at Lantheus]

Yeah, I think great question and I appreciate it. I think if you look at our later adopters, smaller accounts that we have not focused on, there has been a bit of what I would call stroke of the pen risk with them switching over to other agents, postdumumab, whatever, gallium. And we really focused again, as we've said repeatedly on our major accounts, right, those that have the majority of the volume and also providing the most cutting edge treatment. I think in the smaller accounts, again, and we know where every dose is going, because our PMF partners are doing a great job delivering those doses. If they're doing one or two scans a week, we're not going to drop everything and go visit them.

[Brian Markison, CEO & Director at Lantheus]

So naturally, they're open to a dialogue about price, if that's all that matters to them.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of John Vandermosten from Zacks.

[John Vandermosten, Senior Analyst at Zacks Small Cap Research]

Thank you and good morning. Two for me. First, under what conditions does it make sense to launch a generic competitor to a branded Radiopharmaceutical? And then second, what are some of the leading tau candidates in development that would benefit from MKC two forty and PI two thousand six hundred twenty.

[Brian Markison, CEO & Director at Lantheus]

John, I apologize, but you were breaking up on the line and I hate to do this, but could you please repeat the questions?

[John Vandermosten, Senior Analyst at Zacks Small Cap Research]

Apologies. Under what conditions does it make sense to launch a generic competitor to a brand new radiopharmaceutical? And the follow-up was looking at the leading CAL candidates in development right now, which ones might benefit from 248,620, the therapeutic side, what you're looking at?

[Brian Markison, CEO & Director at Lantheus]

Well, I think on tau agents and also our MAV beta amyloid, Because of their greater sensitivity and specificity, any therapeutic candidate that's in the clinic right now in trials will certainly benefit from better patient selection and follow-up. For example, both MK and NAV have the potential to detect very early centeloid count, and they're actually quite frankly more sensitive than blood biomarkers. MK6240 right now is in 103 approximately academic trials around the world, and over 15 sponsored trials with major pharma partners. And we're working very closely with Janssen, Roche and others, Merck, obviously, to name a few to explore and help them clarify, detect, and put patients into clinical trials for their therapeutics. On the generic radio equivalent question, Paul would love to take that question.

[Paul Blanchfield, President at Lantheus]

Thanks for the question. So, I'm launching our radio equivalent for 'three. First and foremost, we always look at our appropriate return metrics to ensure that we're going to generate a return north of our weighted average cost of capital. So we don't just look for growth, at any sort. We're looking to ensure we have a positive financial return from those investments.

[Paul Blanchfield, President at Lantheus]

When we look at the Lutathera opportunity, it is a sizable market. We're pleased with their net or two results that we believe could make this a very sizable market. And so there's certainly a role for additional, products in that space. When we look at the ability to combine that with Octavvy into a theranostic pair, we think that could be a meaningful addition to the marketplace. And in addition, it further expands our relationships with nuclear medicine departments and hospitals that are already using, say, Polarify on their PET CTs that may already be using NeuroSeq.

[Paul Blanchfield, President at Lantheus]

And so we think

[Paul Blanchfield, President at Lantheus]

this is a good

[Paul Blanchfield, President at Lantheus]

opportunity, and we're focused on bringing this to the market. But suffice it to say, we look very closely at the conditions, at demand studies, at market research to ensure that there is a positive return to the investments we're making. And we remain optimistic about that ability to bring Octavio and PNT003 as a theranostic like pair next year.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Richard Newitter from Truist Securities.

[Richard Newitter, Managing Director at Truist Securities]

Hi, thanks for the follow-up. Just wanted to go back to the Polarify guidance. I'm sorry if you said this and I missed it. So flat to low single digits for the full year. You had previously said flat first half twenty five percent year over year for Polarify.

[Richard Newitter, Managing Director at Truist Securities]

Is that still intact? And we just basically maybe a little less recovery in the back half to true it up? Or how should we think of any changes to cadence? Thank you.

[Robert Marshall, CFO & Treasurer at Lantheus]

No, Rich, that's actually fairly astute. I mean, the range does provide, you know, obviously, delivered a flat, call it first quarter. The math in and of itself and you're right. The the the the flat to to low single digits is for the full year. But so from a from a q two perspective, I would anticipate, you know, sequential growth over q one, but it does sort of imply I'm not gonna get I do expect, you know, gross dose volume to to to grow, but I don't wanna get into, you know, the pricing aspect of it.

[Robert Marshall, CFO & Treasurer at Lantheus]

But, you know, what we are saying is, though, that back half would still have the potential to be mid single digit in the back half. So so the the language and the and the the overall sentiment remains largely the same as we get into your with the exception of maybe q two where, you know, we we get into sort of the full effect of a year's worth of contracting.

[Operator]

Thank you. Ladies and gentlemen, there are no further questions at this time. Thank you for participating in today's conference. This concludes the program. You may disconnect and have a wonderful day.

Participants

Executives

• Mark Kinarney, VP - Investor Relations
• Brian Markison, CEO & Director
• Paul Blanchfield, President
• Amanda Morgan, Chief Commercial Officer
• Robert Marshall, CFO & Treasurer

Analysts

• Anthony Petrone, Managing Director at Mizuho Financial Group
• Roanna Ruiz, Senior Managing Director, Biotechnology Analyst at Leerink Partners
• Richard Newitter, Managing Director at Truist Securities
• Matthew Taylor, Managing Director at Jefferies
• Analyst
• Larry Solow, Partner & Managing director - Equity Analyst at CJS Securities
• Yuan Zhi, Managing Director at B.Riley Securities
• Justin Walsh, Director & Research Analyst at Jones Trading
• Kemp Dolliver, Director - Research & Senior Analyst at Brookline Capital Markets
• Andy Hsieh, Research Analyst at William Blair
• David Turkaly, Research Analyst at Citizen JMP
• John Vandermosten, Senior Analyst at Zacks Small Cap Research