Lantheus falls on up to $1 billion acquisition

Lantheus Holdings

28/01/2025 18:17

** Shares of medical diagnostics co Lantheus Holdings
 LNTH.O  fall 7.4% to $91.03
    ** LNTH says it will buy Evergreen Theragnostics to expand
its oncology radiopharmaceutical pipeline with multiple
experimental cancer treatments
    ** Deal consists of an upfront payment of $250 mln and up to
$752.5 mln in milestone payments to Evergreen
    ** JonesTrading analyst Justin Walsh says current weakness
in LNTH is due to concerns about the co deploying cash on
acquisitions that are expected to add to EPS only ~18 months
post-close; he believes this market reaction is "wholly
unwarranted"
    ** Deal expected to close in H2 2025
    ** 12 of 13 brokerages rate the stock "buy" or higher and 1
"hold"; their median PT is $135 - LSEG
    ** LNTH gained 41.8% in 2024

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))