Lantheus Increases to 12.16% shareholding in Radiopharm with US$5m (A$8m) Placement

Rhea-AI Summary

Radiopharm Theranostics (NASDAQ:RADX) has secured a US$5.0 million (A$8.0 million) private placement from Lantheus Holdings Inc., strengthening their strategic partnership. The placement consists of 133 million shares at A$0.060 per share, representing a significant 150% premium to the last traded price of A$0.024.

Following this investment, Lantheus becomes Radiopharm's largest shareholder, increasing its stake to 12.16% of the company. The placement replaces 6-month options issued in August 2024, with settlement expected within 7 days. The funds will be directed towards developing Radiopharm's clinical pipeline in oncology radiopharmaceuticals.

Positive

• Secured US$5.0M (A$8.0M) investment from industry leader Lantheus
• Shares issued at 150% premium to market price
• Strategic partnership with leading radiopharmaceutical company
• Strengthened cash position for clinical pipeline development

Negative

• None.

Insights

Financial Analyst

The $5M private placement from Lantheus at a remarkable 150% premium represents a strong vote of confidence in Radiopharm's technology and future prospects. The premium pricing significantly exceeds typical private placement terms, indicating Lantheus's strategic commitment and positive outlook on Radiopharm's pipeline. The increased ownership to 12.16% stake positions Lantheus as the largest shareholder, suggesting potential for deeper strategic collaboration beyond mere investment.

The deal structure, replacing previously issued options, provides immediate capital infusion while minimizing dilution compared to a traditional equity raise. For Radiopharm, securing funding from an industry leader like Lantheus adds credibility and validates their technology platform. The $5M cash injection strengthens their balance sheet and extends their runway for clinical development without taking on debt.

Market Research Analyst

This strategic investment carries significant implications for both companies in the rapidly growing radiopharmaceutical market. For context, Lantheus is not just any investor - they're a market leader with over 65 years of experience and a market cap exceeding $5B. Their increased stake suggests potential future collaboration opportunities, possibly in clinical development or commercialization.

The 150% premium is particularly noteworthy as it signals Lantheus's bullish outlook on Radiopharm's technology and market potential. This could trigger increased institutional investor interest and potentially lead to a market revaluation of Radiopharm's stock. The placement's structure and timing also indicate a well-thought-out strategy to capitalize on the growing radiopharmaceutical market, which is projected to see substantial growth in the coming years.

• Private placement to radiopharmaceutical industry leader Lantheus, for US$5.0 million
• Placement at A$0.060 per share, representing a premium of 150% to the last closing price of A$0.024
• Lantheus shareholding in Radiopharm increases to 12.16% following the placement
• The funds raised will be applied to the development of Radiopharm’s clinical pipeline

SYDNEY, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Radiopharm Theranostics (ASX:RAD; NASDAQ:RADX, “Radiopharm” or the “Company”), a clinical-stage biopharmaceutical company focused on developing innovative oncology radiopharmaceuticals for areas of high unmet medical need, is pleased to announce that it has executed a subscription agreement for a private placement of ordinary shares to Lantheus Holdings Inc. ( “Lantheus”), raising US$5.0 million (A$8.0 million).

The placement of 133 million shares was completed at an issue price of A$0.060 per share, representing a 150% premium to the last traded price of RAD shares (A$0.024). Settlement is expected to occur within 7 days.

The placement replaces 6-month options that the Company issued in August 2024 (see ASX announcement 20 June 2024).

Radiopharm Theranostics CEO Riccardo Canevari said: “We are delighted to have Lantheus increase its shareholding in RAD, now making it the largest shareholder with over 12% of the Company. We have been working closely with Lantheus since the initial investment announced in June 2024, and we are delighted with the collaboration that has been taking place between our two companies. We look forward to continuing this positive momentum going forward.”

Lantheus CEO Brian Markison said: “We are pleased to increase our holding in Radiopharm, while continuing to work jointly in Australia on the clinical development of radiopharmaceutical assets.”

Massachusetts-based 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. It also has offices in Canada and Sweden and has provided radiopharmaceutical solutions for more than 65 years. 

The placement of shares in RAD to Lantheus is being completed under Radiopharm’s existing placement capacity under ASX Listing Rules.

About Radiopharm Theranostics

Radiopharm Theranostics is a clinical stage radiotherapeutics company developing a world-class platform of innovative radiopharmaceutical products for diagnostic and therapeutic applications in areas of high unmet medical need. Radiopharm has been listed on ASX (RAD) since November 2021.

The company has a deep pipeline of highly differentiated molecules spanning peptides, small molecules and monoclonal antibodies for use in cancer, in pre-clinical and clinical stages of development. The pipeline has been built based on the potential to be first-to-market or best-in-class. The clinical program includes one Phase II and three Phase I trials in a variety of solid tumour cancers including brain, lung, breast and pancreas. Learn more at radiopharmtheranostics.com.

Authorized on behalf of the Radiopharm Theranostics Board of Directors by Executive Chairman Paul Hopper.

For more information:

Riccardo Canevari
CEO & Managing Director
P: +1 862 309 0293
E: rc@radiopharmtheranostics.com

Matt Wright
NWR Communications
P: +61 451 896 420
E: matt@nwrcommunications.com.au

Follow Radiopharm Theranostics:

Website – https://radiopharmtheranostics.com/
Twitter – https://twitter.com/TeamRadiopharm  
Linked In – https://www.linkedin.com/company/radiopharm-theranostics/
InvestorHub – https://investorhub.radiopharmtheranostics.com/

Not an offer of securities

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

FAQ

What is the value and premium of Lantheus' investment in RADX?

Lantheus invested US$5.0 million (A$8.0 million) at A$0.060 per share, representing a 150% premium to the last traded price of A$0.024.

What percentage of Radiopharm (RADX) does Lantheus now own?

Following this placement, Lantheus has increased its shareholding to 12.16%, becoming Radiopharm's largest shareholder.

How will RADX use the funds from the Lantheus placement?

The funds raised will be applied to the development of Radiopharm's clinical pipeline in oncology radiopharmaceuticals.

When is the settlement date for the RADX placement to Lantheus?

Settlement of the placement is expected to occur within 7 days from the announcement date of January 10, 2025.

How many shares were issued to Lantheus in the RADX placement?

The placement consisted of 133 million ordinary shares issued to Lantheus.