Lantheus’ second quarter results were met with a significant negative market reaction, as both revenue and non-GAAP earnings fell short of Wall Street’s expectations. Management attributed the underperformance primarily to competitive pricing pressures in the PSMA PET imaging market, particularly affecting its flagship product, PYLARIFY. CEO Brian Markison acknowledged the challenging environment, stating, “We made the intentional decision to remain disciplined with our pricing strategy, even at the cost of losing select accounts rather than chase volume and harm the long-term value of our PSMA PET franchise.” The company’s refusal to match aggressive competitor discounts, combined with slower growth in large institutional accounts, drove volume losses and pressured margins.
Is now the time to buy LNTH? Find out in our full research report (it’s free).
Lantheus (LNTH) Q2 CY2025 Highlights:
- Revenue: $378 million vs analyst estimates of $387.8 million (4.1% year-on-year decline, 2.5% miss)
- Adjusted EPS: $1.57 vs analyst expectations of $1.68 (6.3% miss)
- Adjusted EBITDA: $157.4 million vs analyst estimates of $174.9 million (41.6% margin, 10% miss)
- The company dropped its revenue guidance for the full year to $1.49 billion at the midpoint from $1.57 billion, a 4.8% decrease
- Management lowered its full-year Adjusted EPS guidance to $5.60 at the midpoint, a 15.8% decrease
- Operating Margin: 23.3%, down from 26.1% in the same quarter last year
- Market Capitalization: $3.66 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 From Lantheus’s Q2 Earnings Call
- Matthew Charles Taylor (Jefferies) asked whether Lantheus could still achieve consistent double-digit growth in 2026 despite current headwinds. CFO Robert Marshall responded that it remains mathematically possible through both organic and inorganic growth, but emphasized the importance of new product launches and recent acquisitions.
- Anthony Charles Petrone (Mizuho Americas) questioned if PYLARIFY share losses were stabilizing and how much of the impact was already reflected. President Paul Blanchfield indicated some stabilization but noted that price declines and volume headwinds are expected to persist into the next quarters.
- Richard Samuel Newitter (Truist Securities) inquired about the timeline and strategic rationale for the new PYLARIFY formulation. CEO Brian Markison explained that development timelines are affected by research complexity, but the new formulation should improve batch size and production efficiency, with regulatory approval targeted for 2026.
- Yuan Zhi (B. Riley) asked how the new formulation would affect existing contracts. CEO Brian Markison clarified that it would be an add-on under current contracts, potentially enabling beneficial price resets for the franchise.
- Mazahir Lukman Alimohamed (Leerink) sought more details on the commercial opportunity for tau imaging in Alzheimer’s disease. Management sees tau tracers as a growing market, with the potential to match the scale of PYLARIFY in the future.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will be watching (1) the pace of stabilization and potential recovery in PYLARIFY’s volumes and pricing, (2) the commercial execution and integration of the Neuraceq and Evergreen acquisitions, and (3) regulatory progress and preparations for launching the new PSMA PET formulation. The success of Lantheus’ pipeline in Alzheimer’s and neuroendocrine imaging will also serve as important milestones.
Lantheus currently trades at $54, down from $72.64 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
