Lantheus Holdings Inc To Aquire Evergreen Theragnostics Inc Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Roanna Ruiz - Leerink Partners LLC - Analyst : Hi. Good morning, everyone. So given that you gained some interesting RLT infrastructure and ability to work with many other isotopes with this acquisition, I was curious if you could talk about which isotopes you might want to work with first out of the acquisition? And also, how does the CDMO business of Evergreen help expand and build your presence in the radiopharma space?

Question: Roanna Ruiz - Leerink Partners LLC - Analyst : Great. Super helpful. And could I squeeze in one more? I was just curious for OCTEVY. Do you have any guidance on what the TAM might be for OCTEVY in terms of PET diagnostics for NETs and where it might be most useful in different imaging segments there?

Question: Paul Choi - Goldman Sachs & Co. LLC - Analyst : Thanks. Good morning, team, and thanks for taking the questions. I have two. The first is just with regard to OCTEVY. Can you maybe elaborate a little bit more on the differentiation versus the existing commercial-stage products, just either in terms of convenience or use of the physicians or manufacturing? And my second question is, I think Evergreen has existing distribution agreements for OCTEVY. Can you maybe just update us on what will happen to those if they're still valid versus internal distribution going forward here? Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2025 / 1:30PM, LNTH.OQ - Lantheus Holdings Inc To Aquire Evergreen Theragnostics Inc

Question: Richard Newitter - Truist Securities, Inc. - Analyst : Hi. Thanks for taking the question. I just wanted to ask on the -- Bob, on the guidance reiteration. It's just about February here, and you're reiterating your guidance. Does that mean that we should expect the results to fall in line, or does that take any end of the range off the table? Or -- I'm just curious what you can say there.

Question: Richard Newitter - Truist Securities, Inc. - Analyst : Okay. And then I'm just wondering if you can comment just on your go-forward acquisition and M&A and licensing and deal collaboration type strategy. You've done about $600 million worth of upfront cash payments that will come probably in 2025, and you announced those in January. Kind of just talk to how much firepower you have left and the balance sheet a little bit and kind of how we should think about M&A going forward. Is this a digestion, or you are going to keep going? Thanks.

Question: Matt Taylor - Jefferies LLC - Analyst : Hi. Thank you for taking the question. The first one I wanted to ask was just if you could clarify a little bit the financial impact now of the two deals. I noticed in the presentation here, you're now saying collectively, they'll be accretive within 18 months post close. Could you give us some framework to think about how these deals could impact earnings in 2025 and 2026 and how to think about the different parts in terms of their dilution in the near term?

Question: Yuan Zhi - B. Riley Securities, Inc. - Analyst : Good morning. Thank you for taking our question. I have two, maybe a quick one. Is this acquisition price, $250 million, contingent on the approval of OCTEVY? And any regulatory update you can provide on this submission?

Question: Yuan Zhi - B. Riley Securities, Inc. - Analyst : Got it. And my next question is, how do you plan to make the most use of Evergreen CDMO business since both Lantheus and Evergreen have pre-clinical and clinical stage assets? Would that be a conflict with other CDMO customers of Evergreen?

Question: Nick Lorusso - TD Cowen - Analyst : Thank you. This is Nick on for Tara. Just one for me. But as it currently stands, what stage of development can Evergreen's manufacturing facility support? Basically, how big can you do Phase 1 trials, Phase 2, Phase 3? And how long will it take to scale up production to later-stage trials or even commercialization? And then I guess just one follow-up on that is what's the time frame for a potential tech transfer for Lantheus's assets to Evergreen's manufacturing facilities once the deal does close? Thanks.

Question: Nick Lorusso - TD Cowen - Analyst : Sounds good. Thank you very much.

Question: Larry Solow - CJS Securities, Inc. - Analyst : Great. Good morning. Thank you. Congratulations. It sounds a very complementary acquisition to me at least. I guess, a question for James. I think you mentioned the business was only founded in 2019, so relatively young. Was it founded more on the contract that CDMO side? Or were you more of an initially drug development company that got into CDMO? I'm just kind of curious how that shook out. And can you discuss maybe just the landscape of other CDMO providers in the radioisotope land?

Question: Larry Solow - CJS Securities, Inc. - Analyst : Got it. And just in terms of the scope of your customers today, can you maybe just kind of discuss how that ranges?

Question: Justin Walsh - JonesTrading Institutional Services LLC - Analyst : Hi, thanks for taking the question. Are there assets in Evergreen's pipeline that Lantheus is particularly intrigued by beyond OCTEVY? I know early data for the CCK2R-targeted EVG321 was highlighted at a scientific meeting last year and looks very exciting.

Question: Kemp Dolliver - Brookline Capital Markets, LLC - Analyst : Great. Thank you and good morning. First question relates to OCTEVY, and it's been under review for a while. And your comments suggest that this is a 2026 launch. Am I reading too much into that such that a 2025 launch is not expected?

Question: David Turkaly - Citizens JMP Securities LLC - Analyst : Thanks. I appreciate the comments on the balance sheet today and the firepower. But obviously, you've got some significant milestones here from these last two deals, but also others out there. I was wondering, Bob, maybe if you could talk to how that's going to proceed or when you expect some of those to hit. It's a sizable amount, so I'm just trying to think through. Will you have the cash flow to cover all that?

Question: David Turkaly - Citizens JMP Securities LLC - Analyst : Okay. Thank you for that. And then you mentioned the seven suites of the GMP. I was just curious. How does that compare to some of your partners? Is that large or smaller? I know the company has only really been around for six years, but I'd love your thoughts there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2025 / 1:30PM, LNTH.OQ - Lantheus Holdings Inc To Aquire Evergreen Theragnostics Inc

Question: David Turkaly - Citizens JMP Securities LLC - Analyst : Well, I had to try. Thank you.

Question: John Vandermosten - Zacks Investment Research, Inc - Analyst : Great. Thank you and good morning. With the LMI acquisition and Evergreen, you've increased your exposure to fixed assets. And does it mean -- does it make sense to own the means of production? Because I know this is a little bit in contrast to the legacy businesses with the outsourced PMFs pretty much. What are your thoughts there on the different approach to the different sides of the business?

Question: John Vandermosten - Zacks Investment Research, Inc - Analyst : Got it. And looking ahead to 2026, how much of the commercialization cost is shared if you combine the marketing of 2003 with OCTEVY? And just in general, is it a lot more efficient to commercialize and market the theragnostic pair than it is to just do them independently?

Question: Andy Hsieh - William Blair & Co. LLC - Analyst : Great. Thanks for taking our questions. One on OCTEVY. So a question has to do with the percent utilization from a diagnostic side. So I'm curious if you can make a side-by-side comparison with the PSMA. So specifically, in terms of NET patients, what percentage of them actually get a PET versus all the other conventional imaging or other diagnosis methodologies, and just to really understand how you came up with the numbers that you provided TAM-wise. And then from an R&D perspective, obviously, with the Molecular Life acquisition and now with Evergreen, I'm curious about your refined thinking on R&D, first on the synergy that can be brought by all three parties, and also whether you're thinking about adding -- using now-acquired capabilities for new molecular entities and new RLPs in the pipeline going forward. Thank you.