Lantheus Holdings (LNTH) Announces Sale of Australian Radiopharmacy Servicing Business
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Lantheus Holdings, Inc. (“Lantheus” or the “Company”) (NASDAQ: LNTH), parent company of Lantheus Medical Imaging, Inc. (“LMI”), a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products, today announced the sale of its radiopharmacy servicing business in Australia to Global Medical Solutions, Ltd. (“GMS”). As part of the transaction, LMI and GMS also entered into a long-term supply and distribution contract under which LMI will continue to supply GMS and its affiliates with LMI’s products on commercial terms and under which GMS has agreed to certain product purchase commitments.
The transaction includes Lantheus’ radiopharmacy servicing business in greater Melbourne, Victoria and in greater Adelaide, South Australia. These radiopharmacies prepare individual, patient-ready doses of single photon emission computed tomography (SPECT)-based radiopharmaceuticals, which are sold by the radiopharmacies to healthcare providers for administration to patients. The long-term supply and distribution contract provides for Lantheus’ products to continue to be available in those markets.
In addition, Lantheus has appointed GMS as a distributor of its radiopharmaceuticals, including nuclear medicine products and cold kits, in Australia and other international markets served in GMS’s international footprint, as well as the distributor of DEFINITY® Vial for (Perflutren Lipid Microsphere) Injectable Suspension in Australia and New Zealand, two countries in which that contrast agent is already approved and sold.
“This transaction simplifies our service and distribution model in Australia and expands the international reach of our products,” said Mary Anne Heino, President and Chief Executive Officer of Lantheus. “Our agreements with GMS align with our business strategy to continually look for opportunities to improve operational efficiencies and customer service. Through our long-term supply and distribution agreement with GMS, we will continue to provide industry-leading nuclear medicine products and contrast agents to healthcare providers and their patients in Australia as well as a number of other international markets served by GMS. We look forward to working closely with GMS to execute a seamless transition for customers, patients, suppliers and employees.”
“This transaction further expands GMS's geographical presence in Australia and extends our breath of services and products in that country. Moreover, the transaction adds valued local market expertise to GMS's existing service offering. Expanding our geographical reach in Australia is an important step for GMS. It strengthens our position as an Australian nation-wide partner with the medical imaging community by adding to our ability to service clients on a local level,” added Haig S. Bagerdjian, Chairman and Chief Executive Officer of GMS. “We look forward to continuing our long running relationship with Lantheus through our newly solidified commercial arrangement, which we believe will help both companies reach their short and long-term goals.”
While moving to this new service and distribution model in the Australian market is expected to result in a modest decrease in revenue going forward, the Company expects the resulting cost savings associated with divesting the radiopharmacy servicing operations and the revenue anticipated under the long-term supply and distribution agreement will together be accretive to Adjusted EBITDA compared to historical levels.
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