Lantheus Holdings(LNTH) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $319.9 million for Q3 2023, an increase of 33.7% year-over-year, with earnings per share of $1.47, up 48% from the prior year [4][11][54] - Adjusted operating profit for the quarter was $139.5 million, a 36.5% increase over the same period last year [53] - The effective tax rate for the quarter was 23.8% [26] Business Line Data and Key Metrics Changes - Revenue from radiopharmaceutical oncology was $216.3 million, up 49.5% year-over-year, with PYLARIFY contributing $215.4 million [24] - DEFINITY sales reached $67.3 million, an increase of almost 11% year-over-year [48] - Precision diagnostics recorded revenue of $96.3 million, up 8.2% from the prior-year quarter [51] Market Data and Key Metrics Changes - The current addressable market for PSMA PET imaging agents is estimated at $1.6 billion, projected to grow to over $3 billion by 2028 [5][9] - The company anticipates an increase in the number of scans from 350,000 to approximately 600,000 by 2028, driven by the adoption of radioligand therapeutics [9][134] Company Strategy and Development Direction - The company aims to leverage its radiopharmaceutical expertise to expand its pipeline and target business development opportunities [6] - PYLARIFY is positioned as the number one ordered PSMA PET imaging agent in the US, supported by its clinical and commercial value proposition [8][18] - The company is focused on the launch of PNT2002, a PSMA-targeted radiotherapeutic asset, and expects to share topline data from the SPLASH trial in Q4 2023 [22][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of PYLARIFY and the overall market for PSMA PET imaging, citing a strong commercial and clinical value proposition [56] - The company is optimistic about the future of radiopharmaceuticals, especially in light of recent developments in the reimbursement landscape [131] - Management highlighted the importance of activating referring physicians to drive growth in the PSMA PET imaging market [99] Other Important Information - Cash and cash equivalents stood at $614.1 million, with access to a $350 million undrawn bank revolver, indicating a strong liquidity position [27] - The gross profit margin for Q3 was 67.2%, an increase of 100 basis points year-over-year, primarily due to favorable volume and product mix [132] Q&A Session Summary Question: What are the largest drivers for the future total addressable market assumption of over $3 billion? - Management highlighted the expansion of radioligand therapy into earlier lines of treatment as a significant driver for growth [134] Question: Is there enough runway with the $1.6 billion TAM to grow PYLARIFY next year? - Management confirmed continued growth potential for PYLARIFY next year, although specific guidance will be provided in February 2024 [36] Question: Can you provide an update on the reach to new accounts for PYLARIFY? - Management noted that growth was primarily driven by existing accounts, with ongoing efforts to activate new PMFs in key geographic areas [76] Question: What is the current market share for PYLARIFY? - Management stated that PYLARIFY remains the clear market leader with approximately 70% market share, despite new competition [105]