Lantheus Holdings(LNTH) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2025, covering balance sheets, income, and cash flows with explanatory notes Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $938,533 | $912,814 | | Total current assets | $1,423,780 | $1,326,633 | | Total assets | $2,055,224 | $1,980,340 | | Total current liabilities | $248,002 | $240,526 | | Total liabilities | $891,030 | $892,329 | | Total stockholders' equity | $1,164,194 | $1,088,011 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Account | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Revenues | $372,764 | $369,975 | | Gross profit | $237,700 | $241,846 | | Operating income | $102,067 | $106,635 | | Net income | $72,945 | $131,066 | | Diluted EPS | $1.02 | $1.87 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $107,563 | $127,238 | | Net cash used in investing activities | $(63,718) | $(106,529) | | Net cash used in financing activities | $(18,219) | $(16,845) | | Net increase in cash | $25,728 | $4,634 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, noting slight revenue growth, strategic acquisitions and divestitures, decreased operating expenses, and a strong liquidity position despite lower net income Q1 2025 vs. Q1 2024 Results of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenues | $372,764 | $369,975 | $2,789 | 0.8% | | Gross Profit | $237,700 | $241,846 | $(4,146) | (1.7)% | | Operating Income | $102,067 | $106,635 | $(4,568) | (4.3)% | | Net Income | $72,945 | $131,066 | $(58,121) | (44.3)% | Revenue by Product Category (in thousands) | Category | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Total radiopharmaceutical oncology | $257,654 | $259,254 | $(1,600) | (0.6)% | | Total precision diagnostics | $104,363 | $104,210 | $153 | 0.1% | | Strategic partnerships and other revenue | $10,747 | $6,511 | $4,236 | 65.1% | | Total revenues | $372,764 | $369,975 | $2,789 | 0.8% | - The company is executing a strategy to become a fully integrated radiopharmaceutical company through several key transactions[124] - Pending Acquisition of Life Molecular Imaging: An agreement for a $350 million upfront payment plus milestones to expand into Alzheimer's disease diagnostics[125] - Acquisition of Evergreen Theragnostics: Completed on April 1, 2025, for approximately $275 million upfront to enhance manufacturing and expand the pipeline[111][128] - Sale of SPECT business: A definitive agreement was signed on May 1, 2025, to sell the SPECT business to SHINE Technologies, allowing for a greater focus on PET radiodiagnostics[113][131] - R&D Pipeline Advancement: Continued investment in key assets including PNT2002/2003, LNTH-2501, MK-6240, NAV-4694, and RM2[167] - The company's liquidity remains strong, with $938.5 million in cash and cash equivalents as of March 31, 2025. The revolving credit facility was amended and increased from $350.0 million to $750.0 million, with maturity extended to December 2029[148][192][204] Quantitative and Qualitative Disclosures About Market Risk This section confirms no material changes in market risk exposures since December 31, 2024, highlighting equity investment volatility - The company's exposures to market risk have not changed materially since December 31, 2024[210] - The company holds investments in equity securities of Perspective and Radiopharm with a carrying value of $30.4 million as of March 31, 2025. These investments are subject to market price volatility as they are recorded at fair value[211] Controls and Procedures Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[212] - There were no material changes in the company's internal control over financial reporting during the first quarter of 2025[213] PART II. OTHER INFORMATION Legal Proceedings The company is involved in ongoing patent infringement lawsuits, including one initiated by a Novartis entity and another filed by the company - The company was sued by Advanced Accelerator Applications (a Novartis entity) for patent infringement following the filing of an Abbreviated New Drug Application (ANDA) for PNT2003[88] - The company has filed its own patent infringement lawsuit against a healthcare-related imaging software developer[89] Risk Factors This section updates risk factors, highlighting economic conditions, healthcare reforms, operational risks from acquisitions, and potential generic competition for PYLARIFY - Economic conditions such as inflation, tariffs, and customer financial instability pose risks to profitability and operations[216][217] - Reforms to the U.S. healthcare system, including changes to Medicare payments and the Affordable Care Act, create uncertainty and could adversely affect business[218] - The company faces risks related to fulfilling its contract development and manufacturing obligations from the Evergreen acquisition and supplying investigational products for third-party research[222][223] - PYLARIFY's new chemical entity (NCE) regulatory exclusivity expires on May 26, 2026, which could lead to the entry of generic competitors and potential patent litigation[225] Unregistered Sales of Equity Securities and Use of Proceeds The company did not repurchase shares under its program in Q1 2025 but withheld shares for employee tax obligations, and does not foresee paying dividends Q1 2025 Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share ($) | Shares Purchased as Part of Publicly Announced Program | Approx. Dollar Value Remaining in Program (in millions) | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 2,425 | $92.01 | — | $150.0 | | Feb 2025 | 2,534 | $83.41 | — | $150.0 | | Mar 2025 | 245,022 | $94.90 | — | $150.0 | | Total | 249,981 | | — | $150.0 | - The shares purchased were withheld to satisfy tax withholding obligations for employees and were not part of the publicly announced repurchase program[229] - The company does not currently intend to pay dividends and expects to retain future earnings to finance growth and repay debt[230] Defaults Upon Senior Securities The company reported no defaults on its senior securities during the reporting period - None[231] Mine Safety Disclosures This item is not applicable to the company's operations - Not applicable[232] Other Information Several company executives and board members adopted Rule 10b5-1 trading plans in Q1 2025 for future common stock sales - Rule 10b5-1 trading plans were adopted by several insiders, including[233][234][235] - President Paul Blanchfield - Chairperson Mary Anne Heino - CAO Daniel Niedzwiecki - CFO Robert Marshall - Board members Julie McHugh and Samuel R. Leno Exhibits This section lists the exhibits filed with the Form 10-Q, including a lease amendment, CEO and CFO certifications, and Inline XBRL financial data - The exhibits filed with this report include a Third Amendment to a lease, CEO and CFO certifications (Rule 13a-14(a) and 18 U.S.C. Section 1350), and various Inline XBRL documents[238]