Transaction Simplifies Distribution Model in Canada and Improves
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Jan. 13, 2016--
Holdings, Inc. (“Lantheus” or the “Company”) (NASDAQ: LNTH), parent
company of Lantheus
Medical Imaging, Inc., a global leader in developing, manufacturing,
selling and distributing innovative diagnostic imaging agents and
products, today announced the sale of its radiopharmacies and Gludef®
(Fludeoxyglucose F18 Injection) manufacturing and distribution business
in Canada to Isologic Innovative Radiopharmaceuticals Ltd. (“Isologic”)
for U.S. $9.0 million in cash, subject to certain purchase price
adjustments. As part of the transaction, the Company and Isologic also
entered into a long-term supply contract under which the Company will
supply Isologic with the Company’s products on commercial terms and
under which Isologic has agreed to certain product purchase commitments.
The transaction included three radiopharmacies owned by Lantheus in
Dorval, Quebec, Quebec City, Quebec and Mississauga, Ontario and one
radiopharmacy operated by Lantheus in Vancouver, British Columbia. These
radiopharmacies prepare individual, patient-ready doses of
radiopharmaceuticals that are sold to healthcare providers, which
administer those unit doses to patients. The long-term supply contract
ensures that Lantheus’ products will continue to be available in the
unit dose distribution channel.
Lantheus has retained its business in Canada which sells its bulk
radiopharmaceuticals, such as TechneLite® (Technetium Tc-99m) generators
and other nuclear medicine products and cold kits, and its contrast
agent, DEFINITY® Vial for (Perflutren Lipid Microsphere) Injectable
“We are simplifying our distribution model in the Canadian market to
improve operational efficiencies and streamline our Canadian
operations,” said Mary Anne Heino, President and Chief Executive Officer
of Lantheus. “This step reflects an evolution in our business strategy
that enables Lantheus to continue providing industry-leading nuclear
medicine products and contrast agents to patients and healthcare
providers in this important international market.”
Ms. Heino continued, “We are committed to working closely with Isologic
to execute a seamless transition for customers, patients and employees.
Through our new long-term partnership with Isologic, we will continue to
meet the unit dose needs of the Canadian healthcare community with our
As a result of this shift in distribution model and the commencement of
the long-term supply agreement, the Company expects its overall level of
Adjusted EBITDA to improve as compared to historic levels due to the
decrease in costs associated with operating the radiopharmacies and the
contracted revenue attributable to the long-term supply agreement. The
Company plans to discuss this transaction on its next quarterly earnings
About Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc.
Holdings, Inc. is the parent company of Lantheus Medical Imaging, Inc.
(“LMI”), which is a global leader in developing, manufacturing, selling
and distributing innovative diagnostic imaging agents and products. LMI
provides a broad portfolio of products, which are primarily used for the
diagnosis of cardiovascular diseases. LMI’s key products include the
echocardiography contrast agent DEFINITY® Vial for
(Perflutren Lipid Microsphere) Injectable Suspension; TechneLite®
(Technetium Tc99m Generator), a technetium-based generator that provides
the essential medical isotope used in nuclear medicine procedures; and
Xenon (Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent
used to evaluate pulmonary function and for imaging the lungs. LMI is
headquartered in North Billerica, Massachusetts with offices in Puerto
Rico, Canada and Australia. For more information, visit www.lantheus.com.
Safe Harbor for Forward-Looking and Cautionary Statements
press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties that
may be described from time to time in our filings with the Securities
and Exchange Commission. Readers are cautioned not to place undue
reliance on the forward-looking statements contained herein, which speak
only as of the date hereof. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result of
new information, future developments or otherwise, except as may be
required by law.
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Source: Lantheus Holdings, Inc.
Lantheus Holdings, Inc.
Meara Murphy, 978-671-8508