Lantheus Reports Third Quarter 2023 Financial Results

• Worldwide revenue of $319.9 million for the third quarter 2023, representing an increase of 33.7% from the prior year period
• GAAP net income of $132.0 million for the third quarter 2023, compared to GAAP net income of $61.2 million in the prior year period
• GAAP fully diluted net income per share of $1.88 for the third quarter 2023, compared to GAAP fully diluted net income per share of $0.86 in the prior year period; adjusted fully diluted net income per share of $1.47 for the third quarter 2023, compared to adjusted fully diluted net income per share of $0.99 in the prior year period
• Net cash provided by operating activities was $116.7 million for the third quarter 2023. Free cash flow was $102.1 million in the third quarter 2023
• The Company updates full year 2023 revenue and adjusted diluted earnings per share guidance
  
  

BEDFORD, Mass., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Lantheus Holdings, Inc. (the Company) (NASDAQ:LNTH), the leading radiopharmaceutical-focused company committed to enabling clinicians to Find, Fight and Follow disease to deliver better patient outcomes, today reported financial results for its third quarter ended September 30, 2023.

The Company's worldwide revenue for the third quarter of 2023 totaled $319.9 million, compared with $239.3 million for the third quarter of 2022, representing an increase of 33.7% over the prior year period.

The Company's third quarter 2023 GAAP net income was $132.0 million, or $1.88 per fully diluted share, as compared to GAAP net income of $61.2 million, or $0.86 per fully diluted share for the third quarter of 2022.

The Company's third quarter 2023 adjusted fully diluted net income per share, or earnings per share ("EPS"), was $1.47, as compared to $0.99 for the third quarter of 2022, representing an increase of approximately $0.48 from the prior year period.

Lastly, net cash provided by operating activities was $116.7 million for the third quarter 2023. Free Cash Flow was $102.1 million in the third quarter of 2023, representing an increase of approximately $14.6 million from the prior year period.

"We made meaningful progress during the quarter with PYLARIFY^® and DEFINITY^® in our commercial portfolio, and with PNT2002 and MK-6240 in our pipeline," said Mary Anne Heino, Chief Executive Officer of Lantheus. "We believe that our unique capabilities, commitment to innovation and excellence, and growing pipeline supports our position as the leading radiopharmaceutical-focused company."

The Company updates its guidance for full year 2023 as follows:

		Guidance Issued November 2, 2023		Previous Guidance Issued August 3, 2023
FY 2023 Revenue		$1.255 billion - $1.27 billion		$1.245 billion - $1.27 billion
FY 2023 Adjusted Fully Diluted EPS		$5.80 - $5.85		$5.60 - $5.70

On a forward-looking basis, the Company does not provide GAAP income per common share guidance or a reconciliation of adjusted fully diluted EPS to GAAP income per common share because the Company is unable to predict with reasonable certainty business development and acquisition related expenses, purchase accounting fair value adjustments, and any one-time, non-recurring charges. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. As a result, it is the Company's view that a quantitative reconciliation of adjusted fully diluted EPS on a forward-looking basis is not available without unreasonable effort.

Internet Posting of Information

The Company routinely posts information that may be important to investors in the "Investors" section of its website at www.lantheus.com. The Company encourages investors and potential investors to consult its website regularly for important information about the Company.

Conference Call and Webcast

As previously announced, the Company will host a conference call and webcast on Thursday, November 2, 2023, at 8:00 a.m. ET. To access the conference call or webcast, participants should register online at https://investor.lantheus.com/news-events/calendar-of-events. 

A replay will be available approximately two hours after completion of the webcast and will be archived on the same web page for at least 30 days.

The conference call will include a discussion of non-GAAP financial measures. Reference is made to the most directly comparable GAAP financial measures, the reconciliation of the differences between the two financial measures, and the other information included in this press release, our Form 8-K filed with the SEC today, or otherwise available in the Investor Relations section of our website located at www.lantheus.com. 

The conference call may include forward-looking statements. See the cautionary information about forward-looking statements in the safe-harbor section of this press release.

About Lantheus Holdings, Inc.

Lantheus is the leading radiopharmaceutical-focused company, delivering life-changing science to enable clinicians to Find, Fight and Follow disease to deliver better patient outcomes. Headquartered in Massachusetts with offices in New Jersey, Canada and Sweden, Lantheus has been providing radiopharmaceutical solutions for more than 65 years. For more information, visit www.lantheus.com. 

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as adjusted net income and its line components; adjusted net income per share - fully diluted; and free cash flow. The Company's management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company's operations, period over period. However, these measures may exclude items that may be highly variable, difficult to predict and of a size that could have a substantial impact on the Company's reported results of operations for a particular period. Management uses these and other non-GAAP measures internally for evaluation of the performance of the business, including the allocation of resources and the evaluation of results relative to employee performance compensation targets. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.

Safe Harbor for Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by their use of terms such as "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "guidance," "intend," "introduce," "may," "momentum," "plan," "potential," "predict," "progress," "project," "promising," "should," "target," "will," "would" and other similar terms. Such forward-looking statements include our guidance for fiscal year 2023 and are based upon current plans, estimates and expectations that are subject to risks and uncertainties that could cause actual results to materially differ from those described in the forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Risks and uncertainties that could cause our actual results to materially differ from those described in the forward-looking statements include: (i) continued market expansion and penetration for our established commercial products, particularly PYLARIFY and DEFINITY, in a competitive environment in which other imaging agents have been approved and are being commercialized, and our ability to clinically and commercially differentiate our products from other products; (ii) our ability to have third parties manufacture our products and our ability to manufacture DEFINITY in our in-house manufacturing facility; (iii) the global availability of Molybdenum-99 ("Mo-99") and other raw material and key components; (iv) the efforts and timing for clinical development, regulatory approval and successful commercialization of our product candidates and new clinical applications and territories for our products, in each case, that we or our strategic partners may undertake; (v) our strategies, future prospects, and our projected growth, including revenue related to our collaboration agreements with POINT Biopharma Global Inc.; (vi) our ability to successfully continue existing clinical development partnerships using MK-6240 as a research tool and to further develop and commercialize such research tool; (vii) our ability to identify and acquire or in-license additional diagnostic and therapeutic product opportunities in oncology and other strategic areas and continue to grow our pipeline of products; and (viii) the risk and uncertainties discussed in our filings with the Securities and Exchange Commission (including those described in the Risk Factors section in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q).

- Tables Follow -

Lantheus Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data – unaudited)

		Three Months Ended September 30,							Nine Months Ended September 30,
			2023				2022			2023				2022
Revenues		$	319,946			$	239,292		$	942,430			$	671,895
Cost of goods sold			119,995				91,859			462,756				257,363
Gross profit			199,951				147,433			479,674				414,532
Operating expenses
Sales and marketing			37,399				25,414			106,472				73,260
General and administrative			35,741				23,759			85,163				93,945
Research and development			14,450				12,517			60,883				39,455
Total operating expenses			87,590				61,690			252,518				206,660
Operating income			112,361				85,743			227,156				207,872
Interest expense			5,054				1,626			14,978				4,604
Other (income) expense (a)			(52,649	)			1,101			(60,362	)			306
Income before income taxes			159,956				83,016			272,540				202,962
Income tax expense			27,999				21,784			49,259				55,710
Net income		$	131,957			$	61,232		$	223,281			$	147,252
Net income per common share:
Basic		$	1.93			$	0.89		$	3.27			$	2.15
Diluted		$	1.88			$	0.86		$	3.18			$	2.08
Weighted-average common shares outstanding:
Basic			68,436				68,756			68,188				68,482
Diluted			70,046				71,075			70,268				70,669

(a) Includes the gain on sale of RELISTOR licensed intangible asset associated with net sales royalties of $51.8 million.

   

Lantheus Holdings, Inc.

Consolidated Revenues Analysis

(in thousands – unaudited)

		Three Months Ended September 30,									Nine Months Ended September 30,
			2023			2022		% Change				2023			2022		% Change
PYLARIFY		$	215,428		$	143,754		49.9	%		$	621,419		$	366,763		69.4	%
Other radiopharmaceutical oncology			848			928		(8.6)%				2,383			3,183		(25.1)%
Total radiopharmaceutical oncology			216,276			144,682		49.5	%			623,802			369,946		68.6	%
DEFINITY			67,336			60,740		10.9	%			206,688			181,374		14.0	%
TechneLite			23,272			22,094		5.3	%			65,853			64,139		2.7	%
Other precision diagnostics			5,740			6,175		(7.0)%				17,002			16,803		1.2	%
Total precision diagnostics			96,348			89,009		8.2	%			289,543			262,316		10.4	%
Strategic partnerships and other revenue			7,322			5,601		30.7	%			29,085			39,633		(26.6)%
Total revenues		$	319,946		$	239,292		33.7	%		$	942,430		$	671,895		40.3	%

Lantheus Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data – unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
			2023				2022				2023				2022
Net income		$	131,957			$	61,232			$	223,281			$	147,252
Stock and incentive plan compensation			13,976				8,103				36,335				21,138
Amortization of acquired intangible assets			11,659				8,306				35,132				24,918
Campus consolidation costs			45				—				3,185				—
Contingent consideration fair value adjustments			(500	)			(1,500	)			(9,475	)			25,400
Non-recurring refinancing related fees			3				—				216				—
Non-recurring fees (a)			(51,789	)			—				(54,523	)			(384	)
Strategic collaboration and license costs			—				—				—				500
Acquisition-related costs			169				169				507				868
Impairment of long-lived assets			—				—				138,050				—
ARO Acceleration and other related costs			320				1,287				1,045				3,087
Other			1,510				106				2,194				111
Income tax effect of non-GAAP adjustments (b)			(4,256	)			(7,038	)			(61,093	)			(21,512	)
Adjusted net income		$	103,094			$	70,665			$	314,854			$	201,378
Adjusted net income, as a percentage of revenues			32.2	%			29.5	%			33.4	%			30.0	%

		Three Months Ended September 30,								Nine Months Ended September 30,
			2023				2022				2023				2022
Net income per share - diluted		$	1.88			$	0.86			$	3.18			$	2.08
Stock and incentive plan compensation			0.20				0.11				0.52				0.30
Amortization of acquired intangible assets			0.17				0.12				0.50				0.36
Campus consolidation costs			—				—				0.05				—
Contingent consideration fair value adjustments			(0.01	)			(0.02	)			(0.13	)			0.36
Non-recurring refinancing related fees			—				—				—				—
Non-recurring fees (a)			(0.74	)			—				(0.78	)			(0.01	)
Strategic collaboration and license costs			—				—				—				0.01
Acquisition-related costs			—				—				0.01				0.01
Impairment of long-lived assets			—				—				1.96				—
ARO Acceleration and other related costs			0.01				0.02				0.01				0.04
Other			0.02				—				0.03				—
Income tax effect of non-GAAP adjustments (b)			(0.06	)			(0.10	)			(0.87	)			(0.30	)
Adjusted net income per share - diluted		$	1.47			$	0.99			$	4.48			$	2.85
Weighted-average common shares outstanding - diluted			70,046				71,075				70,268				70,669

(a) Includes the gain on sale of RELISTOR licensed intangible asset associated with net sales royalties of $51.8 million.

(b) The income tax effect of the adjustments between GAAP net loss and non-GAAP adjusted net income takes into account the tax treatment and related tax rate that apply to each adjustment in the applicable tax jurisdiction.    

Lantheus Holdings, Inc.

Reconciliation of Free Cash Flow

(in thousands – unaudited)

	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net cash provided by operating activities	$	116,739			$	93,568			$	192,973			$	176,429
Capital expenditures		(14,621	)			(6,090	)			(34,486	)			(13,623	)
Free cash flow	$	102,118			$	87,478			$	158,487			$	162,806
Net cash provided by (used in) investing activities	$	83,218			$	(6,090	)		$	18,008			$	(11,823	)
Net cash provided by (used in) financing activities	$	108			$	(1,959	)		$	(12,612	)		$	(6,149	)

Lantheus Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands – unaudited)

	September 30, 2023			December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	614,131		$	415,652
Accounts receivable, net		259,198			213,397
Inventory		56,462			35,475
Other current assets		11,485			13,092
Assets held for sale		7,159			—
Total current assets		948,435			677,616
Property, plant and equipment, net		140,293			122,166
Intangibles, net		163,294			315,285
Goodwill		61,189			61,189
Deferred tax assets, net		152,189			110,647
Other long-term assets		56,210			34,355
Total assets	$	1,521,610		$	1,321,258
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt and other borrowings	$	703		$	354
Accounts payable		37,076			20,563
Short-term contingent liability		—			99,700
Accrued expenses and other liabilities		138,823			127,084
Total current liabilities		176,602			247,701
Asset retirement obligations		22,823			22,543
Long-term debt, net and other borrowings		560,576			557,712
Other long-term liabilities		62,850			46,155
Total liabilities		822,851			874,111
Total stockholders' equity		698,759			447,147
Total liabilities and stockholders' equity	$	1,521,610		$	1,321,258

Contacts:

Mark Kinarney

Vice President, Investor Relations

978-671-8842

[email protected] 

Melissa Downs

Senior Director, Corporate Communications

646-975-2533

[email protected]