Why Is Lantheus Stock Trading Lower On Wednesday?

Core Viewpoint - Lantheus Holdings (LNTH) shares declined following proposed changes by U.S. health agencies to Medicare payment rules for hospital outpatient services and surgical centers starting in 2026, which may impact the company's revenue stability and growth prospects [1]. Payment Rule Changes - The Centers for Medicare & Medicaid Services (CMS) proposed maintaining the drug packaging threshold at $140 for calendar year 2026 under the Hospital Outpatient Prospective Payment System (OPPS) and the Ambulatory Surgical Center (ASC) payment system [2]. - The $140 threshold reflects inflation adjustments based on the Producer Price Index (PPI) for prescription pharmaceuticals, tracing back to an initial $50 threshold established for calendar years 2005 and 2006 [3]. - CMS updated the packaging threshold using PPI data, resulting in a proposed figure of $141.67 for 2026, rounded to $140 [4]. Diagnostic Radiopharmaceuticals - CMS proposed a new diagnostic radiopharmaceutical packaging threshold of $655 for calendar year 2026, an increase from the finalized $630 threshold for 2025 [5]. - If the per-day cost of diagnostic radiopharmaceuticals exceeds the packaging threshold, they will be paid separately, as finalized in the CY 2025 OPPS/ASC rule [6]. Market Impact and Analyst Insights - Analysts from William Blair expressed concerns that Lantheus shareholders may be disappointed by CMS's proposal, especially regarding the potential transition to Average Sales Price (ASP) pricing, which could have positively impacted the Pylarify franchise [7]. - Despite the proposed changes, Pylarify's Medicare-related business is expected to remain largely unaffected, maintaining its leading market position, although growth may be modest in the short term due to challenges in securing long-term contracts [8]. Stock Performance - Lantheus Holdings' stock (LNTH) experienced a decline of 7.77%, trading at $74.95 [9].