Lantheus Holdings, Inc. Reports Second Quarter 2021 Financial Results

Rhea-AI Summary

Lantheus Holdings, Inc. (LNTH) reported Q2 2021 revenue of $101.1 million, marking a 53.1% increase from Q2 2020. However, the company posted a GAAP net loss of $26.7 million, compared to $7.0 million in the prior year. Adjusted EPS slightly rose to $0.11 from $0.10. Free Cash Flow jumped to $23.2 million, an increase of approximately $27.6 million year-over-year. The FDA approved PYLARIFY, enhancing their product portfolio. Revised guidance for FY 2021 estimates revenue between $395 million and $402 million.

Positive

• Revenue increased by 53.1% year-over-year to $101.1 million.
• Free Cash Flow rose to $23.2 million, an increase of $27.6 million from the previous year.
• FDA approval of PYLARIFY, the first PSMA PET imaging agent for prostate cancer.
• Revised FY 2021 revenue guidance improved to between $395 million and $402 million.

Negative

• GAAP net loss increased to $26.7 million from $7.0 million year-over-year.
• Loss per share widened to $0.39 compared to $0.16 in Q2 2020.

Lantheus Holdings, Inc. (NASDAQ: LNTH) (Lantheus), an established leader and fully integrated provider of innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions to find, fight and follow serious medical conditions, today reported financial results for its second quarter ended June 30, 2021.

The Company’s worldwide revenue for the second quarter of 2021 totaled $101.1 million, compared with $66.0 million for the second quarter of 2020, representing an increase of 53.1% from the prior year period.

The Company’s second quarter 2021 GAAP net loss was $26.7 million, or $0.39 per fully diluted share, as compared to GAAP net loss of $7.0 million, or $0.16 per fully diluted share for the second quarter of 2020.

The Company’s second quarter 2021 adjusted fully diluted earnings per share were $0.11, as compared to $0.10 for the second quarter of 2020, representing an increase of 8.1% from the prior year period.

Lastly, net cash provided by operating activities was $25.9 million for the second quarter 2021. Free Cash Flow was $23.2 million in the second quarter of 2021, representing an increase of approximately $27.6 million from the prior year period.

“Our second quarter was highlighted by the FDA approval of PYLARIFY, the first and only commercially available PSMA PET imaging agent for prostate cancer, and the strong performance of DEFINITY which exceeded pre COVID-19 levels,” said Mary Anne Heino, President and Chief Executive Officer. “With the investments Lantheus has made and continues to make in the business, we’ve laid the foundation to take full advantage of our diversified portfolio of products. We remain committed to delivering on our financial commitments while positively impacting the lives of the patients we serve and delivering shareholder value.”

Outlook

The Company updates its guidance for full year 2021 and offers the following guidance for the third quarter.

		Q3 Guidance Issued July 28, 2021		Previous Guidance Issued May 4, 2021
Q3 FY 2021 Revenue		$95 million - $100 million		N/A
Q3 FY 2021 Adjusted Diluted EPS		$0.05 - $0.07		N/A
		FY Guidance Updated July 28, 2021		FY Guidance Issued May 4, 2021
FY 2021 Revenue		$395 million - $402 million		$390 million - $400 million
FY 2021 Adjusted Diluted EPS		$0.38 - $0.42		$0.36 - $0.41

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 (including liability accruals relating to the contingent value rights issued as part of the Progenics Pharmaceuticals, Inc. acquisition), 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 Wednesday, July 28, 2021 at 8:00 a.m. ET. To access the live conference call via telephone, please dial 1-866-498-8390 (U.S. callers) or 1-678-509-7599 (international callers) and provide passcode 6149638. A live webcast will be available in the Investors section of the Company’s website at www.lantheus.com.

A replay of the audio webcast will be available in the Investors section of our website at www.lantheus.com approximately two hours after completion of the call and will be archived for 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 Holdings, Inc. is the parent company of Lantheus Medical Imaging, Inc., Progenics Pharmaceuticals, Inc. and EXINI Diagnostics AB and an established leader and fully integrated provider committed to innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions to Find Fight and Follow^® serious medical conditions. Lantheus provides a broad portfolio of products, including the echocardiography agent DEFINITY^® Vial for (Perflutren Lipid Microsphere) Injectable Suspension; PYLARIFY^®, a PSMA PET imaging agent for the detection of suspected recurrent or metastatic prostate cancer; TechneLite^® (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures; AZEDRA^® for the treatment of certain rare neuroendocrine tumors; and RELISTOR^® for the treatment of opioid-induced constipation, which is partnered with Bausch Health Companies, Inc. The Company is headquartered in North Billerica, Massachusetts with offices in New York, New Jersey, Canada and Sweden. 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,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “will” and other similar terms. Such forward-looking statements 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) the impact of the global COVID-19 pandemic on our business, financial conditions and prospects, and on the timing and enrollment of our clinical trials; (ii) continued market expansion and penetration for our commercial products, particularly DEFINITY, in the face of segment competition and potential generic competition, including as a result of patent and regulatory exclusivity expirations; (iii) our ability to successfully launch PYLARIFY as a commercial product, including (A) our ability to obtain U.S. Food and Drug Administration approval for additional PET manufacturing facilities (“PMFs”) that could manufacture PYLARIFY, (B) the ability of those PMFs to supply PYLARIFY to customers, and (C) our ability to sell PYLARIFY to customers; (iv) the global Molybdenum-99 supply; (v) our products manufactured at Jubilant HollisterStier and our recently-approved modified formulation of DEFINITY (“DEFINITY RT”) to be commercially manufactured at Samsung Biologics; (vi) the continued integration of the Progenics products and product candidate portfolio into our business following the Progenics Acquisition; (vii) our ability to use in-house manufacturing capacity; (viii) the efforts and timing for commercialization of products or new clinical applications for our products that we or our strategic partners may develop, including flurpiridaz F 18; (ix) our ability to develop highly contextualized assessments of disease burden using artificial intelligence (“AI”); and (x) 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 June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Revenues		$	101,064			$	66,010			$	193,573			$	156,714
Cost of goods sold		54,976				40,162				106,455				92,864
Gross profit		46,088				25,848				87,118				63,850
Operating expenses
Sales and marketing		17,631				6,305				31,804				16,435
General and administrative		43,177				20,670				59,315				37,369
Research and development		12,061				4,418				22,421				8,466
Total operating expenses		72,869				31,393				113,540				62,270
Gain on sale of assets		—				—				15,263				—
Operating (loss) income		(26,781)				(5,545)				(11,159)				1,580
Interest expense		1,937				1,914				4,655				3,860
Gain on extinguishment of debt		—				—				(889)				—
Other income		(182)				(756)				(731)				(1,106)
Loss before income taxes		(28,536)				(6,703)				(14,194)				(1,174)
Income tax (benefit) expense		(1,879)				309				3,455				2,501
Net loss		$	(26,657)			$	(7,012)			$	(17,649)			$	(3,675)
Net loss per common share:
Basic		$	(0.39)			$	(0.16)			$	(0.26)			$	(0.09)
Diluted		$	(0.39)			$	(0.16)			$	(0.26)			$	(0.09)
Weighted-average common shares outstanding:
Basic		67,505				43,135				67,300				41,284
Diluted		67,505				43,135				67,300				41,284

Lantheus Holdings, Inc.
Consolidated Revenues Analysis
(in thousands – unaudited)
		Three Months Ended June 30,											Six Months Ended June 30,
		2021				2020 (1)				% Change			2021				2020 (1)				% Change
DEFINITY		$	59,842			$	37,125			61.2	%		$	115,813			$	89,630			29.2	%
TechneLite		23,772				18,668				27.3	%		46,572				41,447				12.4	%
Other precision diagnostics		6,742				7,140				(5.6)	%		13,726				20,197				(32.0)	%
Total precision diagnostics		90,356				62,933				43.6	%		176,111				151,274				16.4	%
Radiopharmaceutical oncology		2,812				2,183				28.8	%		4,312				4,151				3.9	%
Strategic partnerships and other		7,896				894				783.2	%		13,150				1,289				920.2	%
Total revenues		$	101,064			$	66,010			53.1	%		$	193,573			$	156,714			23.5	%

________________________________

1. The Company reclassified rebates and allowances of $3.5 million and $8.2 million within each product category, which included $3.2 million and $7.5 million for DEFINITY, $0.3 million and $0.6 million for TechneLite and zero and $0.1 million for other precision diagnostics, for the three and six months ended June 30, 2020, respectively.

    

Lantheus Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data – unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Net loss		$	(26,657)			$	(7,012)			$	(17,649)			$	(3,675)
Stock and incentive plan compensation		4,588				3,385				7,905				6,460
Amortization of acquired intangible assets		6,074				927				10,759				1,319
Acquired debt fair value adjustment		—				—				(307)				—
Contingent consideration fair value adjustments		25,600				—				25,900				—
Non-recurring refinancing related fees		—				460				—				460
Non-recurring severance related fees		92				—				528				—
Extinguishment of debt		—				—				(889)				—
Gain on sale of assets		—				—				(15,263)				—
Integration costs		11				1,201				30				3,573
Acquisition-related costs		767				7,517				664				8,929
Impairment of long-lived assets		—				—				—				7,275
Other		43				—				53				(75)
Income tax effect of non-GAAP adjustments(a)		(2,731)				(1,940)				(648)				(5,446)
Adjusted net income		$	7,787			$	4,538			$	11,083			$	18,820
Adjusted net income, as a percentage of revenues		7.7		%		6.9		%		5.7		%		12.0		%

		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Net loss per share - diluted		$	(0.39)			$	(0.16)			$	(0.26)			$	(0.09)
Stock and incentive plan compensation		0.07				0.08				0.12				0.14
Amortization of acquired intangible assets		0.08				0.02				0.16				0.03
Acquired debt fair value adjustment		—				—				(0.01)				—
Contingent consideration fair value adjustments		0.37				—				0.38				—
Non-recurring refinancing related fees		—				0.01				—				0.01
Non-recurring severance related fees		—				—				0.01				—
Extinguishment of debt		—				—				(0.01)				—
Gain on sale of assets		—				—				(0.23)				—
Integration costs		—				0.03				—				0.09
Acquisition-related costs		0.02				0.18				0.01				0.22
Impairment of long-lived assets		—				—				—				0.18
Other		—				—				—				—
Income tax effect of non-GAAP adjustments(a)		(0.04)				(0.06)				(0.01)				(0.13)
Adjusted net income per share - diluted		$	0.11			$	0.10			$	0.16			$	0.45
Weighted-average common shares outstanding - diluted		68,705				43,303				68,281				41,702

(a) 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 June 30,								Six Months Ended June 30,
	2021				2020				2021				2020
Net cash provided by (used in) operating activities	$	25,869			$	(2,156)			$	35,687			$	7,252
Capital expenditures	(2,656)				(2,255)				(5,176)				(4,953)
Free cash flow	$	23,213			$	(4,411)			$	30,511			$	2,299

Lantheus Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands – unaudited)
	June 30, 2021				December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	91,500			$	79,612
Accounts receivable, net	54,892				54,002
Inventory	31,719				35,744
Other current assets	8,102				9,625
Assets held for sale	—				5,242
Total current assets	186,213				184,225
Property, plant and equipment, net	118,493				120,171
Intangibles, net	365,259				376,012
Goodwill	61,189				58,632
Deferred tax assets, net	64,777				70,147
Other long-term assets	61,871				60,634
Total assets	$	857,802			$	869,821
Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt and other borrowings	$	10,372			$	20,701
Accounts payable	21,471				16,284
Accrued expenses and other liabilities	41,983				41,726
Liabilities held for sale	—				1,793
Total current liabilities	73,826				80,504
Asset retirement obligations	14,797				14,020
Long-term debt, net and other borrowings	169,249				197,699
Other long-term liabilities	91,790				63,393
Total liabilities	349,662				355,616
Total stockholders’ equity	508,140				514,205
Total liabilities and stockholders’ equity	$	857,802			$	869,821

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210728005187/en/

FAQ

What were Lantheus Holdings' Q2 2021 earnings results?

Lantheus reported Q2 2021 revenue of $101.1 million and a GAAP net loss of $26.7 million.

What is the guidance for Lantheus Holdings for Q3 2021?

Lantheus expects Q3 2021 revenue to be between $95 million and $100 million.

What is the updated revenue guidance for FY 2021 from Lantheus Holdings?

Lantheus revised its FY 2021 revenue guidance to between $395 million and $402 million.

Did Lantheus Holdings see an increase in adjusted EPS in Q2 2021?

Yes, adjusted EPS rose to $0.11 from $0.10 in Q2 2020.