Lantheus's first quarter results fell short of Wall Street’s expectations, with revenue flat year over year and adjusted profitability below consensus. The market responded negatively, reflecting investor concern over both current performance and revised outlook. Management pointed to a mix of competitive pressures in the core PYLARIFY business and the impact of strategic partnership pricing, as well as transitory reimbursement changes, as key factors in the quarterly outcome. CEO Brian Markison cited the shift to mean unit cost reimbursement and short-term “competitive disruption among smaller, non-contracted sites” as particularly relevant to the period’s performance.
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Lantheus (LNTH) Q1 CY2025 Highlights:
- Revenue: $372.8 million vs analyst estimates of $378.8 million (flat year on year, 1.6% miss)
- Adjusted EPS: $1.53 vs analyst expectations of $1.65 (7.5% miss)
- Adjusted EBITDA: $149.6 million vs analyst estimates of $172.9 million (40.1% margin, 13.4% miss)
- The company dropped its revenue guidance for the full year to $1.57 billion at the midpoint from $1.58 billion, a 0.6% decrease
- Management lowered its full-year Adjusted EPS guidance to $6.65 at the midpoint, a 6.3% decrease
- Operating Margin: 27.4%, down from 28.8% in the same quarter last year
- Market Capitalization: $5.49 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Lantheus’s Q1 Earnings Call
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Anthony Petrone (Mizuho Financial Group) asked about competitive dynamics for PYLARIFY and whether recent share shifts were temporary. CEO Brian Markison and President Paul Blanchfield explained that disruption was most acute among smaller, non-contracted sites, and that efforts are underway to expand contracting and stabilize market share.
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Roanna Ruiz (Leerink Partners) questioned how resources freed from the SPECT divestiture would be redeployed. Management responded that this would enable a sharper focus on growth areas such as PET radiodiagnostics and radiotherapeutics, with some team members transitioning to new roles.
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Richard Newitter (Truist Securities) requested clarification on the anticipated dilution from recent acquisitions and the outlook for double-digit growth in 2026. CFO Bob Marshall confirmed that low-single-digit dilution remains the expectation, with double-digit revenue growth still targeted for next year.
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Matt Taylor (Jefferies) pressed for detail on growth drivers in 2026 and the expected contribution from new products. Markison pointed to the launches of OCTEVY, PNT2003, and MK-6240, along with solid performance from PYLARIFY and DEFINITY, as key to achieving the growth target.
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Andy Hsieh (William Blair) raised concerns about new blood-based Alzheimer’s diagnostics potentially reducing demand for PET imaging. Markison and Blanchfield argued that serology tests are likely to complement, rather than replace, PET scans, especially for monitoring and treatment selection.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will closely monitor (1) the impact of expanded contracting efforts on PYLARIFY’s market share recovery, (2) the progress in integrating Evergreen and Life Molecular Imaging and realizing cost or operational synergies, and (3) advancement milestones for late-stage pipeline assets, particularly regulatory submissions for MK-6240 and commercial readiness for OCTEVY and PNT2003. The evolving reimbursement landscape and competitive responses in the PET market will also remain key signposts.
Lantheus currently trades at $80.49, down from $104.72 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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