Lantheus Holdings Inc. (LNTH), a company specializing in radiopharmaceuticals, announced on Monday a definitive agreement to acquire Life Molecular Imaging Ltd., a subsidiary of Life Healthcare Group Holdings Ltd. The acquisition involves an upfront cash payment of $350 million, with the potential for up to an additional $400 million in earn-out and milestone payments.
This acquisition is anticipated to boost both the immediate and long-term growth trajectory of Lantheus by establishing a commercial Alzheimer's disease (AD) franchise through the addition of Neuraceq (florbetaben F18 injection).
The transaction is projected to be accretive to Lantheus' adjusted earnings per share within the first year post-acquisition.
The agreement involves Lantheus Medical Imaging, Inc., Lantheus Radiopharmaceuticals UK Limited (Lantheus UK), Life Medical Group Limited, and Life Healthcare Group Holdings Limited. As per the terms, Lantheus UK will pay an upfront total of $350 million in cash at closing, with potential for further net sales earn-out and milestone payments, which could aggregate to an additional $400 million in cash.
Furthermore, Lantheus UK may contribute up to $30 million toward the sellers' retained future contingent liabilities under specific contractual arrangements.
The boards of directors of both companies have unanimously approved the transaction, which is slated to close in the latter half of 2025, subject to customary closing conditions.
Life Molecular Imaging is focused on developing novel Positron Emission Tomography (PET) diagnostic radiopharmaceuticals.
According to Lantheus, the acquisition will strengthen their growth potential by integrating Neuraceq, a globally approved F-18 PET imaging agent used to identify beta-amyloid plaques in patients evaluated for Alzheimer’s Disease.
Neuraceq is a worldwide approved F-18 radioactive diagnostic agent designed for PET brain imaging to assess amyloid neuritic plaque density in adult patients with cognitive impairment, being evaluated for Alzheimer’s Disease and other cognitive issues. It can confirm eligibility for new AD therapies.
Life Molecular Imaging also brings strong R&D capabilities, a sound commercial infrastructure, and a well-established international market presence. Lantheus plans to leverage these strengths to accelerate the development and commercialization of the combined company's pipeline.
Brian Markison, CEO of Lantheus, stated that the acquisition aligns with the company’s strategy to drive long-term growth and create value by investing in high-potential, complementary assets as well as R&D capabilities, thereby reinforcing their leadership in radiopharmaceuticals. The deal is a natural extension of the existing RM2 partnership between the firms.
This transaction builds upon Lantheus's June 2024 acquisition of global rights to Life Molecular Imaging's clinical-stage radiotherapeutic and radiodiagnostic pair, 177Lu-DOTA-RM2 and 68Ga-DOTA-RM2, which target the gastrin-releasing peptide receptor (GRPR) for the treatment of prostate, breast, and other cancers.
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