OTTAWA, Ontario & BELOIT, Wis. - BWXT Medical Ltd., a subsidiary of BWX Technologies, Inc. (NYSE:BWXT), and NorthStar Medical Radioisotopes, LLC have entered into a Master Services Agreement (MSA) to enhance the production of actinium-225 (Ac-225), an isotope used in cancer treatment. This collaboration aims to improve the availability of medical isotopes, which are crucial for diagnostic and therapeutic procedures.
Under the multi-year agreement, the companies will process and purify radium-226, a precursor to Ac-225, and explore backup supply opportunities.
BWXT Medical President and CEO Jonathan Cirtain emphasized the partnership's role in advancing their mission to support healthcare providers and patients with high-quality medical isotopes. NorthStar's President and CEO Dr. Frank Scholz expressed optimism about the collaboration's potential impact on the radiopharmaceutical industry and patient health.
The agreement will leverage both companies' strengths, combining technology and industry expertise to streamline production and enhance safety protocols. It will also focus on radium-226 target design and fabrication, key to increasing Ac-225 production.
BWXT Medical has recently submitted a Drug Master File (DMF) for Ac-225 to the FDA, which is a step towards supporting later-stage clinical studies and new drug applications. Ac-225 has already been used in an early clinical study, and the DMF will allow for further references in regulatory submissions.
BWXT Medical specializes in manufacturing radiopharmaceuticals and medical isotopes, while NorthStar Medical Radioisotopes focuses on the development and commercialization of radiopharmaceuticals for therapeutic applications and medical imaging.
This agreement is based on a press release statement from the involved companies.
In other recent news, BWX Technologies has advanced into the second phase of a contract with the Wyoming Energy Authority, focusing on the development of small-scale nuclear reactors. The company reported a 6% increase in organic revenue and a 9% rise in adjusted earnings per share for Q1 2024.
Furthermore, it announced plans for a significant expansion of its Cambridge plant with a $60 million investment over two years to meet increasing demand in the commercial nuclear sector.
Deutsche Bank (ETR:DBKGn) revised its outlook on BWX Technologies, adjusting the price target from $110 to $107 due to a modified revenue projection model, but maintained a Buy rating. Similarly, BofA Securities reiterated a Buy rating with a steady price target of $115, suggesting potential recovery and value gain based on the company's involvement in various government contracts and initiatives.
These recent developments reflect the ongoing activities and strategic decisions of BWX Technologies, as it continues to explore and expand its operations in the nuclear sector.
InvestingPro Insights
BWXT Medical Ltd.'s parent company, BWX Technologies, Inc. (NYSE:BWXT), shows a robust financial and operational profile, according to the latest metrics from InvestingPro. With a significant market capitalization of $9.32 billion, the company's stability is evident in its commitment to shareholder returns, demonstrated by a consistent dividend increase over the past 8 years. This dedication to dividends is further underscored by the fact that BWXT has maintained dividend payments for 13 consecutive years, indicating a reliable income stream for investors.
The company's P/E ratio stands at 37, reflecting a high valuation which may suggest investor confidence in its future earnings potential. However, the high P/E ratio relative to near-term earnings growth could indicate that the stock is trading at a premium. Analysts have taken a positive stance on BWXT, with two of them revising their earnings estimates upwards for the upcoming period. This optimism is mirrored in the company's revenue growth, which has seen an 11.52% increase over the last twelve months as of Q1 2024.
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