On Tuesday, Redburn-Atlantic initiated coverage on Lantheus Holdings (NASDAQ:LNTH) stock, a leading supplier of radiopharmaceutical diagnostic agents, with a Buy rating and a 12-month price target of $175. This target suggests a 60% potential upside from the shares position on August 28, 2024.
Lantheus is recognized for its significant presence in the rapidly growing radiopharmaceutical market, with a focus that has resulted in 78% of its revenues stemming from this sector.
The company's flagship product, Pylarify, holds a commanding position in the market as the leading prostate-specific membrane antigen (PSMA) PET imaging agent for the diagnosis and staging of metastatic castration-resistant prostate cancer (mCRPC).
Pylarify has achieved a market share of over 60% in the United States. The product is on a trajectory to exceed $1 billion in revenue in 2024E, following its launch in 2021.
Lantheus's move into radiopharmaceutical therapy is supported by a robust pipeline of radionuclides for both diagnosis and therapy applications. The company's strategic focus on this niche market has positioned it to benefit from the sector's expansion.
The analyst noted that PSMA PET imaging has revolutionized the diagnosis and treatment of mCRPC. Pylarify, along with Telix's Illuccix—which is not rated by the firm—continues to gain market share from traditional diagnostic methods such as CT, MRI, and bone scans, indicating a shift in the diagnostic landscape for mCRPC.
Lantheus's strong market position and revenue growth prospects, underscored by the analyst's optimistic price target, reflect the company's potential for continued success in the radiopharmaceutical industry.
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