Lantheus gains on CMS's reimbursement rule for diagnostic radiopharmaceuticals

Lantheus Holdings

10/07/2024 17:17

** Shares of medical diagnostics co Lantheus Holdings
 LNTH.O  gain 32.6% to $102.61
    ** The Centers for Medicare & Medicaid Services (CMS)
proposed new rule pertaining to reimbursement systems for
diagnostic radiopharmaceuticals
    ** The rule proposes a separate payment for certain
radiopharmaceutical diagnostics above the threshold of $630 per
day cost, compared to the bundled payment currently in place
    ** Reimbursement for LNTH's Pylarify, an imaging agent for
PET scans for prostate cancer, would come under this new
proposed rule
    ** The proposal materially mitigates potential revenue
impact following Pylarify's pass-through expiry on Jan 1, 2025 -
William Blair
    ** Transitional pass-through payments provide additional
payments that met eligibility criteria for at least two years
but not more than three years while CMS gathers additional data
on the cost of those items
    ** This basically takes a potential worst case scenario for
Pylarify off the table - Truist Securities
    ** LNTH stock up 65% YTD 

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))