What Happened?
Shares of radiopharmaceutical company Lantheus Holdings (NASDAQ: LNTH) fell 29.8% in the afternoon session after the company reported disappointing second-quarter financial results and slashed its full-year forecast. The radiopharmaceutical company announced quarterly revenue of $378 million and adjusted earnings per share of $1.57, both of which missed analysts' expectations. A key factor in the performance was an 8.3% decrease in sales for its main product, PYLARIFY, which faced increased competition. Compounding the issue, Lantheus lowered its full-year guidance significantly. The company projected full-year revenue between $1.47 billion and $1.51 billion, well below the consensus estimate of $1.57 billion. Similarly, its earnings per share forecast of $5.50 to $5.70 fell far short of the anticipated $6.64.
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What Is The Market Telling Us
Lantheus’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Lantheus and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 19 days ago when the stock dropped 4.7% on the news that several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively.
Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities.
Lantheus is down 43.3% since the beginning of the year, and at $50.39 per share, it is trading 56.8% below its 52-week high of $116.69 from October 2024. Investors who bought $1,000 worth of Lantheus’s shares 5 years ago would now be looking at an investment worth $3,867.
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