Lantheus Holdings, Inc. (LNTH Quick QuoteLNTH - Free Report) has been gaining from its focus on pipeline development. The optimism, led by a solid fourth-quarter 2023 performance and strength in radiopharmaceuticals, is expected to contribute further. However, dependence upon third parties and macroeconomic concerns are major downsides.

Over the past year, the Zacks Rank #3 (Hold) stock has risen 8.5% compared with 3.5% growth of the industry. The S&P 500 has witnessed 7.8% growth in the said time frame.

The renowned radiopharmaceutical-focused player has a market capitalization of $4.61 billion. It projects 5.6% growth for 2024 and expects to witness continued improvements in its business. Lantheus’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 14.8%.

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Let’s delve deeper.

Pipeline Development: We are optimistic about Lantheus actively developing its pipeline with promising assets like PNT2002 and PNT2003. In December 2022, the company announced the closing of a set of collaborations with POINT Biopharma Global Inc. (“POINT”). This granted Lantheus exclusive worldwide rights — excluding Japan, South Korea, China (including Hong Kong, Macau and Taiwan), Singapore and Indonesia — to co-develop and commercialize POINT’s PNT2002 and PNT2003 product candidates.

In January, the company inked a deal with Perspective Therapeutics to gain an exclusive license for the latter’s clinical-stage alpha therapy, developed for the treatment of neuroendocrine tumors, and the right to co-develop certain early-stage therapeutic candidates targeting prostate cancer.

Strength in Radiopharmaceuticals: Lantheus has established itself as a leader in the radiopharmaceutical sector, particularly in prostate-specific membrane antigen (PSMA) positron emission tomography (PET) imaging, where its product, PYLARIFY, has a strong demand.

Based on estimates from third-party sources regarding the incidence of prostate cancer in men in the United States, Lantheus believes that the market potential for PSMA PET imaging agents in the country could be up to 350,000 annual scans, comprising 125,000 scans for patients with an intermediate, unfavorable or high or very high risk of suspected metastases of prostate cancer and 195,000 scans for patients with suspected recurrence of prostate cancer, among others.

In March, the FDA approved label expansion for DEFINITY (Perflutren Lipid Microsphere) as an ultrasound-enhancing agent for use in pediatric patients with suboptimal echocardiograms.

In January, the company’s abbreviated new drug application seeking approval for the generic version of Lutathera — indicated for the treatment of somatostatin receptor-positive gastroenteropancreatic neuroendocrine tumors — was accepted by the FDA. A potential approval is likely to boost the top line, as GEHC is believed to be the first applicant. The drug generated $427 million in U.S. sales during 2023.

Strong Q4 Results: Lantheus’ fourth-quarter 2023 top and bottom-line performances were solid. Robust segmental results were registered, with continued strength in PYLARIFY and DEFINITY. The expansion of gross margin was also seen.

Downsides

Macroeconomic Concerns: Lantheus’ operational and financial success is significantly influenced by various factors, many of which are beyond its control. The current economic environment and financial market conditions present unpredictable challenges to the business. There is a risk of reduced demand for healthcare services and pharmaceuticals due to various factors, which could affect revenues. This, in turn, might result in delayed or canceled orders, hurting the company's financial stability and liquidity.

Dependence Upon Third Parties: PYLARIFY is produced by a network of PET manufacturing facilities (PMFs) across the nation, each requiring separate FDA approval. Despite ongoing efforts to qualify additional PMFs, there's uncertainty regarding the FDA's continued approvals and the PMFs' manufacturing capabilities, which could adversely impact Lantheus’ future operations and financial health.

Estimate Trend

Lantheus has been witnessing a stable estimate revision trend for 2024. Over the past 60 days, the Zacks Consensus Estimate for its earnings has remained steady at $6.58 per share.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $349.5 million.

Lantheus Holdings, Inc. Price

Lantheus Holdings, Inc. price | Lantheus Holdings, Inc. Quote

Stocks to Consider

Some better-ranked stocks in the broader medical space are Align Technologies, Inc. (ALGN Quick QuoteALGN - Free Report) , Becton, Dickinson and Company (BDX Quick QuoteBDX - Free Report) , popularly known as BD, and Ecolab Inc. (ECL Quick QuoteECL - Free Report) .

ALGN, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.4%. ALGN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALGN’s shares have risen 11.2% compared with the industry’s 1.6% growth year to date.

BD, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.4%. BDX’s earnings surpassed estimates in three of the trailing four quarters and met the same once, delivering an average surprise of 4.6%.

BD’s shares have lost 4.3% against the industry’s 1.6% growth year to date.

Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%.

ECL’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 1.7%. Its shares have rallied 11.8% year to date against the industry’s 19.8% decline.