Summary of Lantheus Conference Call Company Overview - **Company**: Lantheus - **Industry**: Healthcare, specifically in radiopharmaceuticals and diagnostics Key Points and Arguments 1. **Competitive Landscape**: Lantheus faced significant challenges in 2025, particularly with its flagship product PYLARIFY, due to increased competition and the loss of pass-through status affecting reimbursement rates for Medicare patients [7][8][9] 2. **FDA Approvals**: The company received two FDA approvals in recent weeks: a conditional approval for PNT2003 and full approval for PYLARIFY TruVu, which is expected to enhance market competitiveness and customer engagement [8][9] 3. **Future Growth Strategy**: Lantheus is positioning itself for growth in 2026 and beyond, focusing on consolidating its portfolio in nuclear medicine and re-engaging price-sensitive customers who switched to competitors [9][11] 4. **Market Dynamics**: The PSMA PET franchise is expected to stabilize, with projected market volume growth of 10%-11% in 2026, down from 20% in 2025 [31][32] 5. **Manufacturing Advantages**: PYLARIFY TruVu offers significant manufacturing improvements, allowing for up to 50% more doses per batch, addressing customer demand for increased availability [36][37] 6. **Alzheimer's Diagnostics**: The total addressable market (TAM) for Alzheimer's diagnostics is projected to reach $1.5 billion by the end of the decade, driven by the approval of new therapeutic drugs and changes in reimbursement guidelines [49][50] 7. **Capital Allocation**: Lantheus plans to pause on large business development (BD) initiatives to focus on integrating recent acquisitions and optimizing existing product lines [54][55] 8. **Reimbursement Strategy**: The company anticipates a smooth transition to PYLARIFY TruVu, with expectations for transitional pass-through coverage to be effective by October, which will aid in market adoption [65][66] Additional Important Insights 1. **Sales and Marketing Focus**: The company plans to invest 12%-12.5% of revenue in sales and marketing to support the launch of PYLARIFY TruVu and other products [60] 2. **Contracting Dynamics**: Transitioning to PYLARIFY TruVu will involve amending existing contracts rather than creating new ones, which is expected to streamline the process [19][20] 3. **Market Education**: Lantheus aims to raise awareness about the role of radiopharmaceuticals in life sciences, emphasizing their unique market dynamics compared to traditional pharmaceuticals [68][69] This summary encapsulates the critical aspects of Lantheus' current position, strategic direction, and market outlook as discussed in the conference call.

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $406.8 million, an increase of 4% year-over-year, while full-year revenue was $1.546 billion, up 0.5% [20] - Adjusted EPS for Q4 was $1.67, an increase of 4.7%, while full-year adjusted EPS was $6.08, a decrease of 10% from the prior year [26][30] - Operating cash flow for Q4 totaled $90.2 million, down from $157.7 million in Q4 2024 [27] Business Line Data and Key Metrics Changes - Radiopharmaceutical oncology, primarily from PYLARIFY, generated Q4 revenue of $240.2 million, down 9.7% year-over-year, and full-year revenue of $989.1 million, down 6.5% [20] - Precision Diagnostics delivered Q4 revenue of $143.2 million, a 22% increase, driven by DEFINITY and Neuraceq, which contributed $31 million in Q4 [21][14] - Strategic partnerships and other revenue increased by 203.3% to $23.3 million, largely due to MK-6240 [22] Market Data and Key Metrics Changes - PYLARIFY's volume grew approximately 4% year-over-year, with pricing discipline contributing to performance despite competitive pressures [12] - Neuraceq is expected to grow triple digits in 2026, driven by increased demand for Alzheimer's imaging [14] - DEFINITY maintained over 80% market share, delivering over $85 million in Q4 [14] Company Strategy and Development Direction - The company is focusing on radiodiagnostics, with plans to maintain leadership in PSMA PET imaging and prepare for the launch of a new PSMA PET formulation in Q4 2026 [8][36] - The strategic intent includes optimizing the cost structure and prioritizing investments in innovative PET radiodiagnostics [10] - The company plans to pursue value-maximizing alternatives for its radiotherapeutic assets while focusing on diagnostic opportunities [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive meaningful performance gains and deliver sustainable revenue growth in the mid and long term [11][36] - The company anticipates several product approvals in 2026, with a focus on commercial execution and regulatory milestones [30] - Management highlighted the importance of maintaining operational excellence and customer relationships to support growth [13] Other Important Information - The company completed the divestiture of its legacy SPECT business on January 1, 2026, to focus on PET radiodiagnostics [8] - The effective tax rate for Q4 was 19%, with a full-year rate of 25.3% [25] - Cash and cash equivalents stood at $359.1 million, with $200 million remaining for share buybacks [28] Q&A Session Summary Question: What is the timing for the new PSMA PET imaging agent's coding and reimbursement? - Management anticipates securing HCPCS code and transitional pass-through status by October 1, 2026, with a regional rollout planned for Q4 2026 [41][42] Question: How does the POSLUMA versus PYLARIFY study impact market dynamics? - Management expressed concerns about the study design and stated that its results do not factor into the current forecast for PYLARIFY [46][48] Question: Can you elaborate on pricing and unit growth for PYLARIFY in Q4? - Management indicated that Q4 performance exceeded expectations, with both volume growth and favorable pricing contributing to results [52] Question: What are the plans for radiotherapeutic assets? - Management is reviewing therapeutic assets for value optimization and may consider tuck-in acquisitions for diagnostic opportunities [61][62] Question: What is the growth outlook for Neuraceq? - Management expects Neuraceq to achieve triple-digit growth in 2026, supported by expanded manufacturing and deeper penetration in existing accounts [14][66]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $406.8 million, an increase of 4% year-over-year, while full-year revenue was $1,541.6 million, up 0.5% from the previous year [20][21] - Adjusted GAAP fully diluted earnings per share for Q4 were $1.67, an increase of 4.7%, while for the full year, it was $6.08, a decrease of 10% [26][30] - Gross profit margin for Q4 was 65.1%, down 289 basis points from Q4 2024, primarily due to decreases in PYLARIFY net price [22] Business Line Data and Key Metrics Changes - Radiopharmaceutical oncology, solely comprised of PYLARIFY, generated Q4 revenue of $240.2 million, down 9.7% year-over-year, and full-year revenue of $989.1 million, down 6.5% [20][21] - Precision Diagnostics delivered Q4 revenue of $143.2 million, a 22% increase, driven by DEFINITY's sales of $85.3 million [21] - Neuraceq contributed $31 million in Q4 and $51.4 million since its acquisition in late July [21][14] Market Data and Key Metrics Changes - The market for PYLARIFY is expected to see a decline of 8%-10% year-over-year due to increased competition and pricing dynamics [30][45] - Neuraceq is projected to grow triple digits in 2026, driven by increased demand for Alzheimer's imaging [14][31] - DEFINITY is expected to grow in the low to mid-single digits in 2026 [31] Company Strategy and Development Direction - The company is focusing on radiodiagnostics, with plans to maintain leadership in PSMA PET imaging and prepare for the launch of a new PSMA PET formulation in Q4 2026 [8][10] - The strategic intent includes divesting the legacy SPECT business to prioritize innovative PET radiodiagnostics [8][11] - The company aims to optimize its cost structure and selectively pursue value-maximizing alternatives for radiotherapeutic assets [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive performance gains and deliver sustainable revenue growth in the mid and long term [11][36] - The focus for 2026 will be on commercial execution and regulatory milestones, with expectations for several product approvals [11][30] - Management acknowledged the importance of maintaining operational excellence and customer relationships to support growth [13][14] Other Important Information - The company repurchased $100 million of its own shares during Q4 2025, leaving $200 million of authorization for buybacks outstanding [28] - The effective tax rate for Q4 was 19%, with an expected increase to 26% in 2026 [25][32] Q&A Session Summary Question: What is the timing for the new PSMA PET imaging agent's coding and reimbursement? - Management anticipates securing HCPCS coding and transitional pass-through status by October 1st, with a commercial rollout planned for Q4 2026 [41][42] Question: How does the study comparing PYLARIFY and POSLUMA impact market dynamics? - Management expressed concerns about the study design and stated that the results do not factor into their forecast for PYLARIFY [46][48] Question: Can you elaborate on pricing and unit growth in Q4 2025? - Management reported a 4% volume growth for PYLARIFY in Q4, with expectations for low single-digit growth in 2026 [52][54] Question: What are the plans for radiotherapeutic assets? - Management is reviewing the therapeutic assets for value optimization and may consider tuck-in acquisitions for diagnostic opportunities [60][62] Question: What is the growth outlook for Neuraceq? - Management expects triple-digit growth for Neuraceq in 2026, driven by expanding manufacturing and market penetration [14][66]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $406.8 million, an increase of 4% year-over-year, while full-year revenue was $1,541.6 million, up 0.5% [21] - Gross profit margin for Q4 was 65.1%, down 289 basis points from Q4 2024, primarily due to decreases in PYLARIFY net price [23] - Operating profit for Q4 was $138.9 million, a decrease of 8.5%, with reported profit for Q4 at $54.1 million [26] Business Line Data and Key Metrics Changes - Radiopharmaceutical oncology, solely comprised of PYLARIFY, generated Q4 revenue of $240.2 million, down 9.7% year-over-year, and full-year revenue of $989.1 million, down 6.5% [21] - Precision Diagnostics delivered Q4 revenue of $143.2 million, a 22% increase, driven by DEFINITY and Neuraceq, which contributed $31 million in Q4 [22][14] - Strategic partnerships and other revenue was $23.3 million, up 203.3%, due to strong performance from MK-6240 [22] Market Data and Key Metrics Changes - PYLARIFY volume increased approximately 4% year-over-year, with pricing concessions resetting 340B pricing in Q4 2025 [12] - Neuraceq is positioned as the second-most utilized and fastest-growing beta-amyloid PET imaging agent, addressing a large and expanding market [15] - DEFINITY maintained over 80% market share, delivering over $85 million in Q4 [15] Company Strategy and Development Direction - The company is focusing on radiodiagnostics, having divested its legacy SPECT business to prioritize innovative PET radiodiagnostics [8] - The strategy includes maintaining leadership in PSMA PET imaging with PYLARIFY and preparing for the launch of a new PSMA PET formulation in Q4 2026 [8][36] - The company plans to maximize the value of its current product portfolio while selectively developing pipeline assets and optimizing the therapeutic pipeline [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive meaningful performance gains and deliver sustainable revenue growth in the mid and long term [11] - The focus for 2026 will be on commercial execution and regulatory milestones, with expectations for multiple FDA approvals [9][11] - Management highlighted the importance of maintaining operational excellence and customer relationships to support growth [12] Other Important Information - The company repurchased $100 million of its own shares during Q4, leaving $200 million of authorization for buybacks outstanding [28] - The effective tax rate was 19% for Q4 and 25.3% for the full year [26] - The company anticipates a revenue forecast of $1.4 billion to $1.45 billion for 2026, with PYLARIFY expected to decline 8%-10% year-over-year [31] Q&A Session Summary Question: What will be the timing for securing coding and reimbursement for the new PSMA PET imaging agent? - Management anticipates securing HCPCS code and transitional pass-through status by October 1st, with a commercial rollout planned for Q4 2026 [42][43] Question: How does the study comparing PYLARIFY and POSLUMA impact the forecast? - Management expressed concerns about the study design and stated that the results do not impact their forecast [46][49] Question: Can you elaborate on pricing and unit growth in Q4 2025? - Management noted a strong quarter for PYLARIFY, with volume growth of 4% and a favorable pricing environment [51][52] Question: What are the plans for radiotherapeutic assets? - The company is reviewing its therapeutic assets and considering value-maximizing alternatives while focusing on diagnostic assets [60][62] Question: What is the growth potential for Neuraceq? - Management expects triple-digit growth for Neuraceq, driven by expanding manufacturing and deeper penetration in existing accounts [66][68]

© 2026 Lantheus. All rights reserved. Agenda Lantheus Fourth Quarter & Full Year 2025 Results FEBRUARY 26, 2026 Highlights and Business Update Commercial Update Financial Update Closing Remarks Q&A SPEAKERS Mary Anne Heino Executive Board Chair & CEO © 2026 Lantheus. All rights reserved. 2 Bob Marshall CFO and Treasurer Amanda Morgan Chief Commercial Officer Mark Kinarney Vice President, Investor Relations Safe Harbor Statements Cautionary Statement Regarding Forward-Looking Statements This document contain ...

Core Insights - Lantheus Holdings, Inc. reported strong financial results for Q4 and full year 2025, maintaining market leadership with PYLARIFY and expanding its portfolio through acquisitions [2][3][6] Financial Performance - Worldwide revenue for Q4 2025 was $406.8 million, a 4.0% increase from $391.1 million in Q4 2024 [3][7] - GAAP net income for Q4 2025 was $54.1 million, compared to a loss of $11.8 million in Q4 2024, marking a 558.8% improvement [3][7] - Adjusted net income for Q4 2025 was $110.7 million, slightly down by 4.1% from $115.4 million in Q4 2024 [3][7] - Fully diluted earnings per share (EPS) increased to $0.82 in Q4 2025 from a loss of $0.17 in Q4 2024, a 578.8% increase [3][7] Revenue Breakdown - Sales of PYLARIFY decreased by 9.7% to $240.2 million in Q4 2025 [7][21] - DEFINITY sales were $85.3 million, down 1.0% [7][21] - Neuraceq generated $31.0 million in sales, marking a 100% increase as it was newly introduced [7][21] Strategic Focus - The company is sharpening its strategic focus on PET radiodiagnostics and plans to pursue value-maximizing alternatives for its radiotherapeutic assets [2][6][15] - Lantheus aims for up to four FDA approvals in 2026 and is prioritizing execution and investment in its late-stage pipeline [2][6] Guidance for 2026 - The company provided revenue guidance for FY 2026 in the range of $1.4 billion to $1.45 billion and adjusted fully diluted EPS guidance of $5.00 to $5.25 [10]

Core Insights - Nitorum Capital has fully exited its stake in Lantheus Holdings, selling 344,444 shares for approximately $28.2 million, indicating potential concerns regarding the company's investment case due to shrinking margins and leadership changes [1][2]. Company Overview - Lantheus Holdings is a prominent developer and manufacturer of imaging diagnostics and targeted therapeutics for oncology and cardiology, with a strong presence in the radiopharmaceuticals market [6]. - The company reported a total revenue of $1.53 billion and a net income of $167.68 million for the trailing twelve months (TTM) [4]. Financial Performance - Lantheus generated $384 million in revenue for the third quarter, with nearly $95 million in free cash flow, although the quality of earnings is under pressure as GAAP EPS fell to $0.41 from $1.79 year-over-year [9]. - The company's flagship product, iPYLARIFY, experienced a 7.4% decline in sales year-over-year, despite growth in precision diagnostics revenue elsewhere [10]. Market Position - As of June 30, Lantheus represented 4.2% of Nitorum Capital's assets under management (AUM), which now totals $569.28 million across 27 positions following the sale [2][3]. - Lantheus shares are currently priced at $66.53, reflecting a 27% decline over the past year, significantly underperforming the S&P 500, which has increased by 15% during the same period [3]. Strategic Challenges - The company is facing challenges including a CEO retirement, a portfolio reshuffle, and ambitious regulatory timelines with multiple PDUFA dates extending into 2026 [10]. - Execution risk, margin compression, and leadership transitions are factors that may affect investor confidence, as highlighted by Nitorum's decision to divest [11].

Company Overview - Lantheus Holdings specializes in developing and commercializing diagnostic and therapeutic products, including DEFINITY, TechneLite, PYLARIFY, and AZEDRA, targeting cardiovascular and oncology applications [6][9] - The company reported a total revenue of $1.53 billion and a net income of $167.68 million for the trailing twelve months (TTM) [5] Recent Developments - Brigade Capital Management increased its stake in Lantheus Holdings by 173,200 shares in the third quarter, raising the position's value by approximately $4.51 million to about $16.23 million [2][3][7] - The Lantheus position now represents 2.0% of Brigade Capital's 13F assets under management (AUM), making it the third-largest holding in the portfolio [4] Financial Performance - Lantheus reported third-quarter revenue of $384 million and nearly $95 million in free cash flow, despite facing challenges such as acquisition costs and higher operating expenses [10][11] - The company reaffirmed its full-year revenue guidance of roughly $1.5 billion with adjusted earnings per share (EPS) expected to exceed $5.50 [11] Market Position - Lantheus shares are currently priced at $66.53, reflecting a 27% decline over the past year, significantly underperforming the S&P 500, which is up 15% during the same period [4] - The company remains profitable and cash-generative, actively engaging in strategic initiatives such as the acquisition of Life Molecular Imaging and a $100 million stock repurchase [11][12]

Core Viewpoint - Lantheus Holdings, Inc. (NASDAQ:LNTH) is considered a promising investment in the healthcare sector, with a significant portion of analysts recommending a 'Buy' rating and a median price target indicating potential upside [1][2]. Analyst Ratings - Approximately 80% of analysts covering Lantheus Holdings have assigned a 'Buy' or equivalent rating, with a median price target of $75, suggesting an upside potential of 18.48% from the current price [1]. - Jefferies analyst Matthew Taylor maintains a 'Buy' rating with a price target of $105, indicating a potential upside of 66% [2]. - Leerink Partners has reduced its price target from $97 to $90 while keeping an 'Overweight' rating, citing concerns over pricing pressures and competitive dynamics affecting the Pylarify franchise [3]. Financial Performance - In the third quarter results announced on November 6, Lantheus reported mixed financial outcomes, with revenue exceeding consensus estimates by approximately 5%, while diluted EPS fell 2% short of expectations [4]. - The decline in Pylarify revenues was attributed to "340B best price-driven price compression and competitive pressures from Ga-68 PSMA PET agents at large accounts" [4]. Company Overview - Lantheus Holdings, Inc. is a Massachusetts-based company that specializes in diagnostic and therapeutic products for various diseases, with a history dating back to 1956 [4].

Core Insights - The healthcare sector is highlighted as a promising investment opportunity heading into 2026, with many stocks remaining undervalued despite the sector's resilience and growth since the pandemic [1][2][3]. Group 1: Market Outlook - JPMorgan has upgraded the healthcare sector to a preferred investment area, citing easing policy overhang, clarity in earnings, and increased M&A activity as key factors for this positive outlook [2][3]. - The strategists believe that the healthcare sector is showing signs of stabilization and renewed momentum, positioning it favorably for 2026 and beyond [3]. Group 2: Stock Selection Methodology - The list of recommended cheap healthcare stocks is based on companies with a market capitalization exceeding $2 billion, covered by three or more analysts, and showing an upside potential of over 10% with a forward P/E ratio between 8 and 15 [5]. - The top 12 companies were ranked based on their highest upside potential, with additional data on hedge fund holdings included [5][6]. Group 3: Company Highlights - **ICON Public Limited Company (NASDAQ:ICLR)**: - Upside potential of 14.87% as of December 5, 2025, with a share price of $185.87 [8]. - Maintained a 'Market Perform' rating with a price target of $175, indicating ongoing discussions about executive changes and revenue trends [8][10]. - Analysts generally rate it as a 'Buy' with a median price target of $213.50, suggesting nearly 15% upside [11]. - **Lantheus Holdings, Inc. (NASDAQ:LNTH)**: - Upside potential of 18.48% as of December 5, 2025, with a share price of $63.30 [12]. - Almost 80% of analysts rate it as a 'Buy', with a median price target of $75, indicating strong growth potential [12]. - Recent financial performance showed mixed results, with revenue exceeding estimates but diluted EPS falling short, attributed to pricing pressures and competitive dynamics [15].