Business
Lantheus Announces Agreement to Sell RELISTOR® Royalties to HealthCare Royalty
Agreement enhances Lantheus’ strong liquidity position and supports continued pipeline advancement and commercial readiness BEDFORD, Mass., Aug. 03, 2023
About this update from Lantheus Holdings, Inc.
[{"type":"text","content":"Agreement enhances Lantheus’ strong liquidity position and supports continued pipeline advancement and commercial readiness\nBEDFORD, Mass., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Lantheus Holdings, Inc. (“Lantheus” or the “Company”) (NASDAQ: LNTH), a company committed to improving patient outcomes through diagnostics, radiotherapeutics and artificial intelligence solutions that enable clinicians to Find, Fight and Follow disease, today announced the divestiture of its RELISTOR (methylnaltrexone bromide) net sales royalties. The sale of this non-core asset strategically aligns with Lantheus’ long-term vision and growth strategy, allowing the Company to enhance its focus on the core radiopharmaceutical business and fuel further investment in this growing field. HealthCare Royalty (“HCRx”) has acquired the tiered, sales-based royalty rights on worldwide net sales of RELISTOR while Lantheus retains the rights to future sales-based milestone payments. “It is an exciting time at Lantheus, with multiple ongoing late-stage radiopharmaceutical therapeutic programs that we believe have the potential to make a meaningful difference in patients’ lives,” said Mary Anne Heino, Chief Executive Officer of Lantheus. “The sale of the RELISTOR royalties unlocks significant value, which can be strategically channeled into our rapidly growing and evolving radiopharmaceutical business. As the leading radiopharmaceutical-focused company, we are committed to driving innovation as we Find, Fight and Follow disease to deliver better patient outcomes.” Lantheus plans to use the net proceeds of the transaction to continue to invest in its growth strategy. The sale not only provides financial flexibility, but also enables the Company to continue advancing its innovative pipeline. Under the terms of the purchase agreement, Lantheus received an initial payment of approximately $98 million and has the right to receive an additional payment of $5 million from HCRx if worldwide net sales of RELISTOR in 2025 exceed a specified threshold. In exchange for the payment, HCRx received the rights to the tiered, sales-based royalties on worldwide net sales of RELISTOR related to the second quarter of 2023 and subsequent quarters. During the twelve-month period ended December 31, 2022, Lantheus reported $22.3 million in aggregate royalties derived from net sales of RELISTOR....