Lantheus Stock Strengthened by Favorable CMS Ruling and Long-term Growth Prospects

Leerink Partners analyst Roanna Ruiz has maintained their bullish stance on LNTH stock, giving a Buy rating yesterday.

Roanna Ruiz’s rating is based on several key considerations that favor Lantheus’s stock. The recent CMS CY25 final rule has been deemed a net positive for Lantheus, as it aligns with previous expectations of continuing separate payment for Pylarify beyond the transitional pass-through expiry at the end of 2024. This effectively mitigates a significant reimbursement concern for the stock. Lantheus is anticipated to benefit from a reimbursement model at the mean unit cost in 2025, with a potential shift towards more advantageous average sales price reimbursement in 2026 and beyond.
This CMS decision positions Lantheus favorably to negotiate multi-year strategic agreements with key hospitals and imaging centers, enhancing its prospects for long-term growth and reinforcing its leadership in the PSMA PET imaging space. Additionally, the CMS final rule provides investors with reassurance regarding Pylarify’s future, as it’s unusual for CMS to reverse a final rule. Investors are also looking forward to further insights from Lantheus management during their upcoming earnings call.

In another report released yesterday, Jefferies also assigned a Buy rating to the stock with a $145.00 price target.

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Lantheus (LNTH) Company Description:

Lantheus Holdings, Inc. engages in the development, manufacture and commercialization of diagnostic medical imaging agents and products that assist clinicians in the diagnosis and treatment of cardiovascular and other diseases. Its products are used by cardiologists, nuclear physicians, radiologists, internal medicine physicians, sonographers and technologists working in a variety of clinical settings. The firm operates through the following geographical segments: U.S. and International. The U.S. segment produces and markets medical imaging agents and products throughout the U.S. This segment sells its products to radio pharmacies, integrated delivery networks, hospitals, clinics and group practices. The International segment operations consist of production and distribution activities in Puerto Rico and direct distribution activities in Canada. The company was founded in 1956 and is headquartered in North Billerica, MA.