Street View: Lantheus' tumor kit setback seen as temporary, with growth catalysts still ahead
BUZZ-Street View: Lantheus' tumor kit setback seen as temporary, with growth catalysts still ahead ** The U.S. Food and Drug Administration on Friday declined to approve Lantheus Holdings’ LNTH.O diagnostic imaging kit for types of cancer tumors, citing unresolved issues at a third-party manufacturing facility
** The imaging kit, LNTH-2501 or Octevy is a diagnostic device used with PET scans to detect neuroendocrine tumors
DELAY, NOT DERAILMENT
** Truist Securities ("buy", PT: $115) says it would use any weakness in Lantheus shares as a buying opportunity, as Octevy is not a key driver of the company's expected growth
** Truist sees other imaging devices such Pylarify TruVu and Neuraceq as the main growth drivers through 2026-2027
Pylarify TruVu is a PET scan tracer for prostate cancer, while Neuraceq is a a PET scan tracer for Alzheimer's disease
** William Blair ("Outperform") notes that the FDA's Octevy CRL should have only a modest impact on the company's overall outlook
** Brokerage views Lantheus' Alzheimer's diagnostic franchise as benefitting from long-term growth in Alzheimer's treatments, without taking on the clinical trial risks tied to drug development
** TD Cowen ("buy", PT: $105) says LNTH-2501 could stand out in the market and expressed confidence in approval if manufacturing issues are resolved
(Reporting by Padmanabhan Ananthan)
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See all newsStreet View: Lantheus' tumor kit setback seen as temporary, with growth catalysts still ahead
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US FDA declines Lantheus’ tumor imaging kit over third-party manufacturing issues (updated)
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