What Happened?
Shares of radiopharmaceutical company Lantheus Holdings (NASDAQ: LNTH) jumped 2.5% in the morning session after it announced an exclusive licensing agreement with GE HealthCare to bring its prostate cancer imaging agent, PYLARIFY, to Japan.
Under the deal, GE HealthCare gained the rights to develop, make, and sell the diagnostic product in the Japanese market. PYLARIFY is an agent used for positron emission tomography (PET) scans to find prostate-specific membrane antigen (PSMA) positive lesions in men with prostate cancer. In return for the license, Lantheus received an upfront fee and will be eligible for future payments based on development milestones and tiered royalties from product sales in Japan.
After the initial pop the shares cooled down to $53.47, up 2.7% from previous close.
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What Is The Market Telling Us
Lantheus’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 5.3% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading.
Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% the previous month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.
Lantheus is down 39.8% since the beginning of the year, and at $53.47 per share, it is trading 54.2% 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 $4,445.
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