Q1 2024 Lantheus Holdings Inc Earnings Call

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Operator: Good morning. Welcome to the Lantheus first quarter 2024 conference call. All lines have been placed on mute. This call is being recorded, and a replay will be available in the investors section of the company's website approximately two hours after the completion of the call and will be archived for at least 30 days. I'll now turn the call over to Mark Kinarney, Vice President of Investor Relations.

Speaker Change: Good morning, welcome to the land this first quarter 2024 conference call.

Speaker Change: All lines have been placed on mute. This call is being recorded and a replay will be available in the investors section of the company's website approximately two hours after the completion of the call.

Speaker Change: It will be archived for at least 30 days.

Speaker Change: I'll now turn the call over to Mark <unk>, Vice President of Investor Relations Mark.

Mark Richard Kinarney: Thank you. Good morning, and welcome to today's call. With me today are Brian Markison, our CEO; Paul Blanchfield, our president; and Bob Marshall, our CFO. We will begin the call with prepared remarks and then open the call for Q&A. This morning, we issued a press release, which was furnished to the Securities and Exchange Commission under Form 8K, reporting our first quarter 2024 results. The release and today's slide presentation are in the investor section of our website at lantheus.com.

Mark: Thank you good morning, and welcome to today's call with me today are Brian Marcussen, our CEO, Paul Blanchfield, our president and Bob Marshall Our CFO.

Mark: We will begin the call with prepared remarks, and then open the call for Q&A.

Mark: This morning, we issued a press release, which was furnished to the Securities and Exchange Commission under form 8-K reporting our first quarter 2024 results.

Mark: The release and today's slide presentation on the investors section of our website at <unk> Dot com.

Mark Richard Kinarney: Any comments made during our call could include forward-looking statements. However, actual results may differ materially from these statements due to a variety of risks and uncertainties, which are detailed in our SEC filings. Please refer to our SEC filings for a detailed discussion of these risks and uncertainties. Discussions during this call will also include certain non-GAAP financial measures. Reconciliation of these measures to the most directly comparable gap financial measures is also included in the investors section of our website. It is my pleasure to now turn the call over to our CEO, Brian.

Mark: Any comments made during our call could include forward looking statements actual results may differ materially from these statements due to a variety of risks and uncertainties, which are detailed in our SEC filings.

Mark: Please refer to our SEC filings for a detailed discussion of these risks and uncertainties disc.

Mark: Discussions during this call will also include certain non-GAAP financial measures.

Mark: Reconciliation of these measures to the most directly comparable GAAP financial measures is also included in the investors section of our website.

Mark: It is my pleasure to now turn the call over to our CEO Brian <unk>.

Brian A. Markison: Thank you, Mark, and good morning. This marks my first earnings call as CEO of Lantheus, and I am delighted to be here to lead this incredible team. I began my career as a pharmaceutical sales rep and have more than 40 years of experience. Throughout my career, I have successfully led commercial efforts in numerous therapeutic categories, including oncology and immunology across major global markets. Having served most recently as the chair of the board and a member of the board since 2012.

Brian A. Markison: Thank you Mark and good morning.

Brian A. Markison: This marks my first earnings call as CEO of Atlantis, and I am delighted to be here to lead this incredible teams.

Brian A. Markison: I began my career as a pharmaceutical sales wrapping up more than 40 years of experience.

Brian A. Markison: Throughout my career I have successfully led commercial efforts in numerous therapeutic categories, including oncology and immunology across major global markets.

Brian A. Markison: Having served most recently as the chair of the board and a member of the board since 2012.

Brian A. Markison: I have a deep understanding of Lantheus and the radiopharmaceutical industry, and I'm committed to partnering with our exceptional leadership team to enhance the vision, strategy, and execution necessary to remain the leading radiopharmaceutical-focused company. The outstanding start to 2024 underscores this operational excellence and innovation as we once again delivered strong performance and made strategic investments to advance and expand our pipeline. I'm particularly proud that our products were used to impact the lives of more than 1.6 million patients and their families during the quarter.

Brian A. Markison: I have a deep understanding of lantus in the radiopharmaceutical industry and are committed to partnering with our exceptional leadership team to enhance the vision strategy and execution necessary to remain the leading radiopharmaceutical focused company.

Brian A. Markison: The outstanding start to 2024 underscores this operational excellence and innovation as we once again delivered strong performance and made strategic investments to advance and expand our pipeline.

Brian A. Markison: I'm, particularly proud that our products were used to impact the lives of more than $1 6 million patients and their families in the quarter.

Brian A. Markison: As we look to the future, Lantheus will continue to be the leading radiopharmaceutical-focused company through operational excellence and sustained innovation in diagnostics and therapeutics enhanced by AI, while delivering better patient outcomes and value to stakeholders. To realize this, we will maximize the value of our existing portfolio, expand our pipeline and expertise through business development and M&A, and sustain an attractive financial profile. With that, I'll now turn the call over to Paul to speak about our existing commercial portfolio. I'll then come back and discuss our pipeline.

Brian A. Markison: As we look to the future landscape will continue to be the leading radiopharmaceutical focused company through operational excellence and sustained innovation in diagnostics and therapeutics enhanced by AI, while delivering better patient outcomes and value to stakeholders.

Brian A. Markison: To realize this we will maximize the value of our existing portfolio expand our pipeline and expertise through business development, and M&A and sustain an attractive financial profile.

Brian A. Markison: With that I'll now turn the call over to Paul to speak about our existing commercial portfolio I'll, then come back and discuss our pipeline.

Paul M. Blanchfield: Thank you, Brian. I'm excited to share details on another successful quarter. Polarifi generated net sales of $259 million, up over 32% from the prior year. Growth was driven by an expanding PSMA PET imaging market and increasing utilization of PSMA PET with Polarify at existing customer sites. We continue to focus on delivering over $1 billion in net sales for Polarify in 2024, making it the first ever pet imaging agent blockbuster, and ensuring Polarify is available for patients, continues to grow, and remains a clear market.

Paul M. Blanchfield: Thank you, Brian I'm excited to share details on another successful quarter.

Paul M. Blanchfield: Polaris <unk> generated net sales of $259 million.

Paul M. Blanchfield: Up over 32% from the prior year.

Paul M. Blanchfield: Growth was driven by an expanding PMMA pet imaging market and increasing utilization of P. SMA pet with Polaris high at existing customer sites.

Paul M. Blanchfield: We continue to focus on delivering over $1 billion of net sales for <unk> in 2024, making clarify the first ever pet imaging agent blockbuster and ensuring clarify is available for patients continues to grow and remains the clear market leader.

Paul M. Blanchfield: As the clear market leader, we help to drive growth of the overall PSMA PET imaging market through continued education on the benefits of PSMA PET with Polarify to the prostate cancer community. We recently launched our new marketing campaign, Let's Be Clear, which highlights our differentiating clinical and commercial value proposition, as well as our market leadership as the number one utilized PSMA PET. Last year, we expanded our Polarify sales force to educate nuclear medicine departments and freestanding imaging centers, as well as referring urologists and oncologists, and we are beginning to see the impact of these efforts.

Paul M. Blanchfield: As the clear market leader, we helped to drive growth of the overall piece may pet imaging market through continued education on the benefits of <unk> pet with Polaris high to the prostate cancer community.

Paul M. Blanchfield: We recently launched our new marketing campaign, let's be clear, which highlights our differentiating clinical and commercial value proposition as well as our market leadership as the number one utilized P. S may pet imaging agent.

Paul M. Blanchfield: Last year, we expanded our clarify sales force to educate nuclear medicine departments, and freestanding imaging centers as well as referring neurologists and oncologists and we are beginning to see the impact of these efforts.

Paul M. Blanchfield: This new campaign and Salesforce expansion, combined with our strategic partnerships, enables us to continue to grow the overall market and sustain Polarify brand leadership. Behind all of these efforts is our relentless focus on operational excellence, including reliability, scale, and out-of-the-door time flexibility.

Paul M. Blanchfield: This new campaign and Salesforce expansion combined with our strategic partnerships enables us to continue to grow the overall market and sustained <unk> brand leadership.

Paul M. Blanchfield: Behind all of these efforts is our relentless focus on operational excellence, including reliability scale and out the door time flexibility.

Paul M. Blanchfield: Polarify is the only PSMA PET imaging agent that is widely available through a diverse F-18 distributor network, ensuring convenient and reliable supply. We serve patients in all 48 contiguous states, as well as Washington, D.C., and Puerto Rico and in Europe through our partner Curium, serving a large and growing market. We continue to expand our network with multiple sites activated in the quarter while also enabling earlier dose delivery times at existing PMS, both of which improve patient access and support the growing demand for Polarify.

Paul M. Blanchfield: Polaris <unk> is the only P. SMA pet imaging agent that is widely available through a diverse F 18 distributor network, ensuring convenient and reliable supply.

Paul M. Blanchfield: We serve patients in all 48 contiguous states as well as Washington, D C and Puerto Rico and in Europe through our partner curium supplying a large and growing market.

Paul M. Blanchfield: We continue to expand our network with multiple sites activated in the quarter, while also enabling earlier dose delivery times at existing Pms, both of which improve patient access and support the growing demand for clarify.

Paul M. Blanchfield: We continue to actively implement a multifaceted strategy to mitigate the impact of the potential expiry of transitional pass-through payment, or TPT, at the end of 2024. It's important to note that the potential expiration of TPT only affects approximately 20% of our Polarify revenue, and we are committed to mitigating the impact for hospitals. In addition, TPT is not a Polarify specific issue, but rather a class. In fact, the products that currently represent approximately 95% of the prostate cancer PSMA PET imaging market all face TPT expiry within nine months of each other.

Paul M. Blanchfield: We continue to actively implement a multifaceted strategy to mitigate the impact of the potential expiry of transitional pass through payment for T. P. T. At the end of 2024.

Paul M. Blanchfield: It's important to note that potential exploration of TPP only affects approximately 20% of our clarify revenue and we are committed to mitigating the impact for hospitals.

Paul M. Blanchfield: In addition, GPT is not a polaris <unk> specific issues, but rather a class issue.

Paul M. Blanchfield: In fact, the products that currently represent approximately 95% of the prostate cancer P. S may pet imaging market all faced TPP expiry within nine months of each other.

Paul M. Blanchfield: As we mentioned on our last call, we have been entering into long-term strategic partnerships with customers to ensure they continue to have access to Polarify as their PSMA pet agent of choice. We are fiercely committed to ensuring Polarify is available for patients and remains the clear market leader. We also continue to work with the Centers for Medicare and Medicaid Services, or CMS, to create separate payment for radiopharmaceutical diagnosis while advocating for the FIND Act to ensure health equity for patients seeking access to innovative radiopharmaceutical diagnostics, including Polarify.

Paul M. Blanchfield: Okay.

Paul M. Blanchfield: As we mentioned on our last call we have been entering into long term strategic partnerships with customers to ensure they continue to have access to Polaris high as their P. SMA pet agent of choice.

Paul M. Blanchfield: We are fiercely committed to ensuring Polaris <unk> available for patients and remains the clear market leader.

We also continue to work with the centers for Medicare and Medicaid services or CMS to create separate payment for radiopharmaceutical diagnostics, while advocating for defined act to ensure health equity for patients seeking access to innovative radiopharmaceutical diagnostics, including Polaris Sai.

Paul M. Blanchfield: To further grow the market and support Polarify's long-term growth, we are exploring the clinical utility of Polarify in additional patient populations, including favorable intermediate risk patients to inform medical guidelines. We have begun enrolling patients in the mirror study designed to determine whether PSMA PET imaging with Polarify can detect the presence or absence of additional prostate cancer lesions in patients initially staged as favorable intermediate risk, and importantly, how imaging can change their intended management.

Paul M. Blanchfield: To further grow the market and support clarifies long term growth, we are exploring the clinical utility of clarify in additional patient populations, including favorable intermediate risk patients to inform medical guidelines.

Paul M. Blanchfield: We have begun enrolling patients in the mirror study designed to determine whether P. SMA pet imaging with Polaris high can detect the presence or absence of additional prostate cancer lesions in patients initially staged as favorable intermediate risk and importantly, how imaging can change their intended management.

Paul M. Blanchfield: We also continue to support investigator-sponsored research with the potential to expand the clinical utility of Polarify. And, as we have previously said, we continue to assess additional options to support the life cycle of Polarify, including how to maintain patient access and maximize the value of our entire portfolio, and we'll share more information as appropriate. In our microbubble business, Dfinity maintained its strong momentum, with first quarter net sales of approximately $77 million, up 11% year over year.

Paul M. Blanchfield: We also continue to support investigator sponsored research with the potential to expand the clinical utility of clarify.

Paul M. Blanchfield: And as we have previously said, we continue to assess additional options to support the lifecycle of Polaris high, including how to maintain patient access and maximize the value of our entire portfolio and we will share more information as appropriate.

Paul M. Blanchfield: In our Microbubble business definitive maintained its strong momentum with first quarter net sales of approximately $77 million up 11% year over year.

Paul M. Blanchfield: DFINITY's drivers of success continue to be its clinical and commercial value proposition, decades of experience in clinical use, supported by our operational excellence and customer education efforts. During the quarter, the FDA approved our supplemental new drug application for DFINITY's use in pediatrics, with suboptimal echo. The expanded indication is a testament to the product's proven utility across broad patient populations, now including pediatrics. I will now turn the call back to Brian, who will provide some insights into our program.

Paul M. Blanchfield: Definitive as drivers of success continue to be its clinical and commercial value proposition decades of experience in clinical use supported by our operational excellence and customer education efforts.

During the quarter the FDA approved our supplemental new drug application for definitive use in pediatric patients with suboptimal echoes the.

Paul M. Blanchfield: The expanded indication is a testament to the products proven utility across broad patient populations now including pediatrics.

Paul M. Blanchfield: I will now turn the call back to Brian who will provide some insights into our pipeline.

Brian A. Markison: Within our existing pipeline, we have a number of opportunities that have the potential to significantly impact the lives of patients and our future growth, including PNT2002, PNT2003, and MK6240. Each of these assets was acquired or licensed based on our in-depth knowledge of the radiopharmaceutical market and our focused business development and M&A efforts.

Brian A. Markison: Thank you Paul.

Brian A. Markison: Within our existing pipeline, we have a number of opportunities that have the potential to significantly.

Brian A. Markison: Impact the lives of patients and our future growth, including PNT 2002, <unk> 2003 at MK 60 to 40. Each of these assets was acquired a license based on our in depth knowledge of the radiopharmaceutical market and our focused business development and M&A efforts.

Brian A. Markison: PNT 2002 is our investigational PSMA-targeted radioligand therapy for RLT for the treatment of patients with metastatic castration-resistant prostate cancer. In December 2023, we reported that SPLASH, the Phase III Registrational Study, achieved its primary endpoint with a statistically significant 29% reduction in the risk of radiographic progression or death. As we have previously shared, we are awaiting more mature overall survival results as only 46% of protocol-specified target events were reached at the first interim analysis. We will analyze the overall survival data when it has matured to 75% of the protocol-specified events, which our models indicate should occur in the third quarter of this year.

Brian A. Markison: PMT 2002 is our investigational <unk> SMA targeted like radio ligand therapy for <unk>.

Brian A. Markison: For the treatment of patients with metastatic castration resistant prostate cancer.

Brian A. Markison: In December 2023, we reported that splash the phase III Registrational study achieved its primary endpoint with a statistically significant 29% reduction in the risk of radiographic progression or death.

Brian A. Markison: As we have previously shared we are awaiting more mature overall survival results as only 46% of protocol protocol specified target events were reached at the first interim analysis, we will analyze the overall survival data when it has matured to 75% of the protocol specified events.

Brian A. Markison: Which our models indicate should occur in the third quarter of this year.

Brian A. Markison: PNT 2003, a product candidate for the treatment of neuroendocrine tumors, is currently under FDA review. If approved and pending positive resolution of the Hatz-Waxman litigation, PNT 2003 could launch in 2026, making it the first radio-equivalent to lutetium-177 DOTATAC. This is already a sizable and growing market, and PNT 2003 would be an additional option for patients and their health care providers for the treatment of neuroendocrine tumors. We continue to progress MK6240, our F18-based PET tracer under development for the detection of tau tangles, which has the potential to be a best-in-class agent for staging and monitoring the progression of Alzheimer's disease and leverages our expertise in radiopharmaceutical diagnostics, and specifically F-18-based PET products.

Brian A. Markison: PMT 2003, a product candidate for the treatment of neuroendocrine tumors is currently under FDA review, if approved and pending positive resolution of the hatch Waxman litigation PMT 2003.

Brian A. Markison: Could launch in 2026, making it the first radio equivalent to Lutetium 177 Dota Tate.

Brian A. Markison: This is already a sizable and growing market and PMT 2003 would be an additional option for patients and their healthcare providers for the treatment of neuroendocrine tumors.

Brian A. Markison: We continue to progress MK 60 to 40 RFA team based pet tracer underdevelopment for detection of Tau Tangles, which has the potential to be a best in class agent for staging of monitoring progression of Alzheimer's disease, and Leverages, our expertise in radiopharmaceutical diagnostics and.

Brian A. Markison: Specifically F 18 based pet products clinical.

Brian A. Markison: Clinical evidence accumulated over the past five years has shown the value of Tau as a prognostic marker for cognition, which is recognized in established research guidelines from the National Institute on Aging and Alzheimer's Association, as well as in their draft clinical guidelines.

Brian A. Markison: Clinical evidence accumulated over the past five years has shown the value of Tau as a prognostic marker for calculation.

Brian A. Markison: Which is recognized in established research guidelines from the National Institute on aging in Alzheimer's Association as well as in their draft clinical guidelines.

Brian A. Markison: MK6240, with high affinity and limited off-target binding inside the brain, offers the potential for earlier detection of tau and monitoring for changes in levels of tau, which has led to its adoption within Alzheimer's disease therapeutic clinical trials. The success of these trials may help inform future use of MK6240, and we look forward to sharing more on the regulatory path for this asset later this year. Earlier this year, we announced our partnership with Perspective Therapeutics, which provides us with the ability to further expand our RLT pipeline with an option to exclusively license VMT-AlphaNet, Perspective's lead product candidate for the treatment of neuroendocrine tumors.

Brian A. Markison: K 60 to 40 with high affinity and limited off target binding inside the brain offers the potential for earlier detection of talent monitoring for changes in levels of Tau, which has led to its adoption within all timers disease therapeutics clinical trials the.

Brian A. Markison: The success of these trials may help inform future use of MK $62 40, and we look forward to sharing more on the regulatory path for this asset later this year.

Brian A. Markison: Earlier this year, we announced our partnership with prospective therapeutics, which provides us with the ability to further expand our <unk> pipeline with an option to exclusively license <unk> Alpha net perspectives led based product candidate for the treatment of neuroendocrine tumors. We see lead to 12 is one of them.

Brian A. Markison: We see lead 212 as one of the more promising isotopes for alpha therapy, especially when paired with Prospective's proprietary chelator. Prospective expects preliminary results from cohorts one and two of the ongoing dose escalation phase one to be presented at a trial in the third quarter.

Brian A. Markison: More promising isotopes for alpha therapy.

Brian A. Markison: Especially when paired with prospectus proprietary key later prospective expects preliminary results for cohorts, one and two of the ongoing dose escalation phase <unk> trial in the third quarter. We also can elect to co develop certain led to 12 based alpha therapies for prostate cancer finally.

Brian A. Markison: We also can elect to co-develop certain lead to 12 based alpha therapies for prostate cancer. Finally, we took an equity position in the company because we believe in their platform. In summary, we have a market-leading commercial portfolio and a growing development portfolio and have fully integrated capabilities to develop, manufacture, and commercialize multiple product candidates. As we look to the future, we will utilize our balance sheet, strong cash flow, and access to capital to execute financially attractive business development and M&A opportunities that enhance our pipeline and capabilities in areas that we believe best align with our radiopharmaceutical expertise.

Speaker Change: We took an equity position in the company because we believe in their platform.

In summary, we have a market, leading commercial portfolio and our growing development portfolio and a fully integrated capabilities to develop manufacture and commercialize multiple product candidates.

Speaker Change: As we look to the future we will utilize our balance sheet strong cash flow and access to capital to execute a financially attractive business development and M&A opportunities that enhance our pipeline and capabilities in areas that we believe best align with our radiopharmaceutical expertise.

Brian A. Markison: Finally, we have and will continue to sustain and strengthen our financial profile, investing in our current business to maximize value while ensuring we have sufficient capacity to invest in long-term growth drivers. This has been a hallmark of Lantheus and something we plan to continue. Naturally, I'm incredibly proud of what Lantheus has accomplished and even more excited about the future. The radiopharmaceutical field offers significant near and long-term potential, and our existing portfolio capabilities and financial discipline position us well to continue to be the leading radiopharmaceutical-focused company. I will now turn the call over to Bob.

Speaker Change: Finally, we have and will continue to sustain and strengthen our financial profile investing in our current business to maximize value, while ensuring we have sufficient capacity to invest in long term growth drivers. This has been a hallmark of <unk> and something we plan to continue that.

Speaker Change: Actually I am incredibly proud of the Atlantis is accomplished and even more excited about the future. The radiopharmaceutical field offers significant near and long term potential and our existing portfolio capabilities and financial discipline position us well to continue to be the leading.

Speaker Change: Radiopharmaceutical focused company.

Robert J. Marshall: Thank you, Brian, and good morning, everyone. I will provide highlights of the first quarter 2024 financials, focusing on adjusted results with comparisons to the prior year quarter, unless otherwise noted. Turning now to the details, consolidated net revenue for the first quarter was $370 million, an increase of 23 percent. Radiopharmaceutical Oncology contributed $259.3 million of sales in the quarter, up 32.1 percent, attributable to the continued strength of Polarify, with sales of $258.9 million, up 32.4 percent year-over-year, and in line with seasonal trends we've noted over the last year. Precision Diagnostics revenue of $104.2 million was 9% higher.

Speaker Change: I will now turn the call over to Bob. Thank you, Brian and good morning, everyone. I will provide highlights of the first quarter 2020 for financials, focusing on adjusted results with comparisons to the prior year quarter unless otherwise noted.

Robert J. Marshall: Highlights include sales of DFINITY at $76.6 million, $11.2% higher, along with Tech-a-Lite revenue of $21.7 million, up 3.5%. Lastly, strategic partnership and other revenue was $6.5 million, down 27.5%, due largely to the prior year comparable having $6.2 million of Relestore-related royalties not repeated this year. Gross profit margin for the first quarter was 68.8%, an increase of 14 basis points despite an approximate 70 basis point headwind due to the previously noted Rella store royalty sale mid last year. The increase is attributed to favorable product mix led by robust volumes of Polarify and DFINITY, along with a streamlined manufacturing footprint, offset in part by higher contracted material and overhead costs, and additional PMF network investment.

Robert J. Marshall: Turning now to the details consolidated net revenue for the first quarter was $370 million, an increase of 23% radiopharmaceutical oncology contributed $259 3 million of sales in the quarter up 32, 1% attributable to the continued strength of <unk> with sales of $258 9 million up 32.

Robert J. Marshall: 4% year over year and in line with seasonal trends, we've noted over the last year precision.

Robert J. Marshall: Diagnostic revenue of $104 2 million was 9% higher highlights include sales of definitive at $76 6 million 11, 2% higher along with taconite revenue of $21 7 million up three 5%.

Robert J. Marshall: Lastly, strategic partnership and other revenue was $6 5 million down 27, 5% due largely to the prior year comparable having $6 $2 million of Relistor related royalties not repeated this year.

Robert J. Marshall: Gross profit margin for the first quarter was 68, 8% an increase of 14 basis points. Despite an approximate 70 basis point headwind due to the previously noted relistor royalty sales mid last year.

Robert J. Marshall: The increase is attributable to favorable product mix led by robust volumes at Polaris <unk> Infinity, along with the streamline manufacturing footprint offset in part by higher contracted material and overhead costs and additional Pms network investments.

Robert J. Marshall: Operating expenses, at 26.8% of net revenue, were 538 basis points higher than the prior year rate, but in line with previously guided spending levels. As noted earlier this year, increases in operating expenses reflect investments made to support several growth and efficiency initiatives. Notably, we successfully went live with our new ERP system on January 1st, which we supplemented with external help to ensure a smooth transition and continuity of our business.

Robert J. Marshall: Operating expenses at 26, 8% of net revenue were 538 basis points higher than the prior year rate, but in line with previously guided spending levels. As noted earlier. This year increases in operating expense reflects investments made to support several growth and efficiency initiatives, notably we successfully went live with.

Robert J. Marshall: Our new ERP system on January one, which we supplemented with external help to ensure smooth transition and.

Robert J. Marshall: Operating profit for the quarter was $155.3 million, for an increase of 9.4%. Other income and expense, at $3.9 million, is a result of net interest, excuse me, net interest income offset in part by interest expense on our existing debt. Total adjustments in the quarter were $12 million of gain before taxes. Of this amount, $15.4 and $9.9 million of expense are associated with non-cash stock and incentive plans and acquired intangible amortization, respectively.

Robert J. Marshall: Continuity of our business.

Robert J. Marshall: Operating profit for the quarter was $155 3 million or an increase of nine 4%.

Robert J. Marshall: Other income and expense at $3 9 million of income is a result of net interest income.

Robert J. Marshall: Net interest income offset in part by interest expense on our existing debt.

Robert J. Marshall: Total adjustments in the quarter were $12 million of gain before taxes.

Robert J. Marshall: This amount $15 four and $9 9 million of expense is associated with noncash stock and incentive plans and acquired intangible amortization respectively.

Robert J. Marshall: 21.7 million of IPR&D and transactional expenses related to the prospective transactions during the quarter, along with a $60.7 million unrealized gain tied to that equity investment, with the remainder relating to acquisition, integration, and other non-recurring. Our effective tax rate was 25.7%.

Robert J. Marshall: $21 7 million of IP, R&D and transactional expenses relate to the prospective transactions during the quarter, along with a $67 million of unrealized gain tied to that equity investment with the remainder relating to acquisition integration and other nonrecurring expenses, our effective tax rate was 25 seven.

Robert J. Marshall: The resulting reported net income from the first quarter was $131.1 million and $118.3 million on an adjusted basis, an increase of 15.8%. Gap fully diluted earnings per share for the first quarter were $1.87 and $1.69 on an adjusted basis, an increase of 15.2%. Now turning to cash flow, first quarter operating cash flow totaled $127.2 million, $18.7 million higher than Q1 last year. Capital expenditures totaled $8.3 million, $900,000 lower than the prior year quarter.

Sent the resulting reported net income for the first quarter was $131 1 million and $118 $3 million on an adjusted basis, an increase of 15, 8%.

Robert J. Marshall: GAAP fully diluted earnings per share for the first quarter were $1 87.

Robert J. Marshall: And $1 69 on an adjusted basis, an increase of 15, 2%.

Robert J. Marshall: Now turning to cash flow first quarter operating cash flow totaled $127 2 million $18 7 million over Q1 last year capital expenditures totaled $8 $3.900 million lower than the prior year quarter.

Robert J. Marshall: Free cash flow, which we define as operating cash flow less capital expenditures, was $119 million, an increase of 19.8%. During the quarter, the company invested $78.3 million in prospective therapeutics, alongside a net $20 million to obtain certain rights and options, as well as the sale of our Somerset facility. Taken together, cash and cash equivalents, net of restricted cash, now stands at $718.3 million. We have access to our $350 million undrawn bank revolver and are comfortable with our strong liquidity position.

Robert J. Marshall: Free cash flow, which we define as operating cash flow less capital expenditures was $119 million an increase of 19, 8% during the quarter. The company invested $78 $3 million in prospective therapeutics, alongside net $20 million to obtain certain rights and options as well as the sale of our Somerset facility.

Robert J. Marshall: Together cash and cash equivalents net of restricted cash now stands at $718 3 million.

Robert J. Marshall: We have access to our $350 million Undrawn bank revolver and are comfortable with our strong liquidity position.

Robert J. Marshall: Turning now to our updated guidance for the full year 2024, as well as a first look at the second quarter, we are increasing our view for Polarify for the full year, as we see clear signals of market expansion, brand awareness, and market leadership amidst competitive dynamics. We now forecast Polarify to grow in the mid 20% range over the full year 2023. And as was noted on the last call, sequential growth should follow the seasonal pattern seen in 2023. We remain confident in DFINITY and that it can grow in high single digits for the full year on top of last year's mid-teens performance. Other products also remain at our prior expectations.

Robert J. Marshall: Turning now to our updated guidance for full year 2024, as well as the first look at the second quarter, we are increasing our view for Polaris <unk> for the full year as we see clear signals of market expansion brand awareness and market leadership amidst competitive dynamics, we now forecast <unk> to grow in the mid 20% range over the full year 2023 result.

Robert J. Marshall: And as was noted on the last call sequential growth should follow a seasonal pattern seen in 2023.

Robert J. Marshall: We remain confident in definitive in that it can grow high single digits for the full year on top of last year's mid teens performance.

Robert J. Marshall: Other products also remain at our prior expectation levels taken together, we estimate full year revenue to be in a range of one five to 152 billion up from the prior estimate of $1 41 to $1 45 billion, an increase of approximately 18% to 20% over 2023, excluding relistor from the 2012.

Brian A. Markison: Taken together, we estimate full-year revenue to be in a range of $1.5 to $1.52 billion, up from the prior estimate of $1.41 to $1.445 billion, an increase of approximately 18% to 20% over 2023, excluding RellaStore from the 2023 result. We expect fully diluted adjusted earnings per share to mean a range of $7.20, up from the prior estimate of $6.50 to $6.70. For the second quarter, net revenue should be in a range of $380 to $390 million, and fully diluted adjusted earnings per share should be in a range of $1.81 to $1.86. With that, let me turn the call back over to Brian.

Robert J. Marshall: Three result.

Robert J. Marshall: We expect fully diluted adjusted earnings per share to be in a range of $7 and $7 20 up from the prior estimate of $6 50 to $6 76.

Robert J. Marshall: For the second quarter net revenue should be in a range of $180 to $390 million fully diluted adjusted earnings per share to be in a range of $1 81 to $1 86.

Brian A. Markison: Thank you. In summary, our outstanding first quarter performance is a testament to the dedication of the Lantheus employees. We are actively implementing our strategy to drive both near and long-term growth, prioritizing the advancement of our radiopharmaceutical pipeline while maintaining robust performance. With ample capital and strategic positioning, we're positioned to keep creating value supported by market-leading products, including Polarify, which has the potential to be the first-bet imaging agent to reach blockbuster status.

Robert J. Marshall: With that let me turn the call back over to Brian.

Brian A. Markison: Thank you in summary, our outstanding first quarter performance is a testament to the dedication of the <unk> employees.

Brian A. Markison: We are actively implementing our strategy to drive both near and long term growth.

Brian A. Markison: Prioritizing the advancement expansion of our radiopharmaceutical pipeline.

Brian A. Markison: While maintaining robust performance with ample capital and strategic positioning we are positioned to keep creating value supported by market, leading products, including Polaris <unk>, which has the potential to be the first pet imaging agent to reach blockbuster status.

Brian A. Markison: Throughout 24, we will continue to harness our team's potential to identify, develop, and invest in innovative solutions and leverage our proven operational excellence to serve healthcare professionals and patients. Having been with the company for a number of years before taking over as CEO approximately two months ago, I am more excited than ever about the future at Lantheus. We have a tremendous opportunity to build on our heritage and unrivaled radiopharmaceutical leadership. I want to thank everyone in the Lantheus organization for their ongoing, unwavering commitment to our purpose to find, fight, and follow disease to deliver better patient outcomes. And with that, we are now ready to take your questions. Operator, please proceed.

Brian A. Markison: Throughout 'twenty four we will continue to harness our team's potential to identify develop and invest in innovative solutions and leverage our proven operational excellence to serve health care professionals and patients.

Atlanta: Have you been with the company for a number of years before taking over as CEO of approximately two months ago I am more excited than ever about the future Atlanta, Yes, we have a tremendous opportunity to build on our heritage and unrivaled Radiopharmaceutical leadership I want to thank everyone in the lanthier organization for their ongoing unwavering commitment.

Atlanta: To our purpose to find fight and follow disease to deliver better patient outcomes.

Speaker Change: And with that we are now ready to take your questions. Operator. Please proceed.

Operator: Thank you. As a reminder to ask a question, please press star 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. One question per person, please. Please stand by while we compile the Q&A roster. Our first question comes from Anthony Petrone from Mizuho Financial Group.

Speaker Change: Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again.

One question per person please.

Operator: Please standby, while we compile the Q&A roster.

Operator: Yes.

Operator: Our first question comes from the line of Anthony Petrone from Mizuho Financial group.

Anthony Charles Petrone: Thank you and congratulations on the strong quarter here, out of the gate for 2024. And again, Brian, welcome and congratulations on taking the CEO role. Maybe to start with, with Polarify here, you know, from a three month perspective in March, but also the guidance, so well beyond our expectations in one queue. And Bob, you mentioned plus 20% on a much higher base here, looking out for the remainder of 2024.

Anthony Charles Petrone: Thank you and congrats on the strong quarter here.

Anthony Charles Petrone: Out of the gate for 2024, and again, Brian welcome and congratulations on taking the CEO role.

Anthony Charles Petrone: And maybe to start with with Polaris Sai.

Anthony Charles Petrone: Heroes.

Anthony Charles Petrone: On a three month perspective in March but also the guidance so well beyond our expectations in <unk> and Bob you mentioned here plus 20% on a much higher base here looking out for the remainder of 2024, so just a little bit on on the dynamics and the underlying marketplace are you seeing more.

Brian A. Markison: So just a little bit on the dynamics in the underlying marketplace. Are you seeing more utilization, mostly in the core indications of high-risk and metastatic cancer populations, or are you actually seeing some usage off-label in earlier indications? And then maybe a little bit on utilization as therapy starts to get going. Is that also a driver? And I have a couple of follow-up questions.

Anthony Charles Petrone: More utilization, mostly in the core indications of high risk in metastatic.

Anthony Charles Petrone: Cancer populations are you actually seeing some usage off label in earlier indications and then maybe a little bit on utilization as therapy starts to get going is that also a driver and I'll have a couple of follow up questions. Thanks.

Brian A. Markison: Yeah, and thanks for the congratulations. This is Brian.

Anthony Charles Petrone: Yes.

Anthony Charles Petrone: Thanks for the congrats this is Brian.

Brian A. Markison: I'll kick it off and then turn it over to Paul but I think the short answer our Polaris Sai is we are we are seeing the use of the brand expand.

Brian A. Markison: And most importantly, it's within our existing locations and customer accounts. So I think more referring physicians are getting on the bandwagon. Our commercial team is really expanding the knowledge base thats out there and we are also seeing.

Paul M. Blanchfield: I'll kick it off and then turn it over to Paul, but I think the short answer and the polarity is that we are seeing the use of the brand expand, and most importantly, it's within our existing locations and customer accounts. So I think more referring physicians are getting on the bandwagon. Our commercial team is really expanding the knowledge base that's out there, and we are also seeing through a lot of clinical trial use that people are beginning to look at much earlier settings for polarify, much like the mirror study. But Paul, do you want to add to that?

Brian A. Markison: Through a lot of clinical trial use that people are beginning to look at much earlier settings for Polaris five much like the mirror study, but Paul do you want to add to that thanks, Brian and thanks, Anthony if we look at drivers of Polaris <unk> in the first quarter and then Bob can touch a little bit more on the guidance I would say, it's driven by three overall factors. The first is.

Paul M. Blanchfield: Thanks, Brian, and thanks, Anthony. If we look at the drivers of Polarify in the first quarter, and then Bob can touch a little bit more on the guidance, I would say it's driven by three overall factors. The first is growth in the overall market. The continued expansion of PSMA PET, particularly among existing prescribers, has been stronger than we anticipated. And market research suggests increasing scan utilization for BCR patients, as well as for patient selection and monitoring, which is really leading to a larger current addressable market than we initially anticipated at the beginning.

Paul M. Blanchfield: The growth in the overall market. The continued expansion of <unk>, Pat, particularly among existing prescribers has been stronger than we anticipated and market research suggests an increasing scan utilization for PCR patients as well as for patient selection and monitoring which is really leading to a larger.

Paul M. Blanchfield: Current addressable market than we initially anticipated at the beginning of the year as Brian alluded to the biggest driver of the Polaris high growth is really the increasing utilization at existing customers.

Paul M. Blanchfield: As Brian alluded to, the biggest driver of Polarify growth is really increasing utilization at existing customers, where we are seeing existing prescribers continue to support and see the brand preference that we see in Polarify. We think this really validates our marketing initiatives, including our new campaign, our 2023 Salesforce expansion, our strategic partnerships with customers, as well as our continued enhancement of our PMF network, which is now up to about 58 sites, including cal times, available days, and new sites.

Paul M. Blanchfield: Where we are seeing existing prescribers.

Paul M. Blanchfield: Continue to support and see the brand preference that we see in Polaris High we think this really validates the market and initiatives, including our new campaign, our 2023 sales force expansion, our strategic partnerships with customers as well as our continued enhancement of Rpms network, which is now up to about 58 sites, including <unk>.

Paul M. Blanchfield: And then lastly, we did take a price increase at the beginning of the year that had a far lesser impact, but we did take a 6% WAC price increase. I would reiterate what Brian mentioned around the label. As we've always said, the label for Polarify is incredibly broad. And indeed, some of the life cycle management, as noted, the mirror study is really about addressing guidelines. Given the breadth of the label for risk of metastases prior to definitive therapy or a rising PSA, there really is a broad population for Lantheus to continue to educate physicians on.

Paul M. Blanchfield: <unk> available days in new sites, and then lastly, we did take a price increase at the beginning of the year.

Paul M. Blanchfield: <unk> had a far lesser impact, but we did take a 6% WAC and price WAC price increase at the beginning of this year.

Speaker Change: Would reiterate what Brian mentioned around the label as we've always said the label for Polaris High is incredibly broad and indeed some of the lifecycle management as noted the mirror study is really about addressing guidelines.

Speaker Change: Given the breadth of the label for risk of metastasis prior to definitive therapy or a rising Psa.

Speaker Change: There really is a broad population for lamp. The has to continue to educate physicians on and we see those.

Speaker Change: Paying rewards from all the investment in hardware, maybe on a future looking guidance basis I'll, let Bob provide some commentary yes. Good morning.

Paul M. Blanchfield: And we see those paying rewards from all the investment and hard work. Maybe on a future-looking guidance basis. I'll let Bob provide some commentary. Yes, good morning. You know, just I can't really expand much more on that.

Robert J. Marshall: Good morning, Anthony. You know, just I can't really expand much more on that. I mean, I guess what I would tell you is that each quarter we, you know, evaluate or re-evaluate to confirm or dismiss our assumptions. And as I said in my prepared remarks, and I think we heard Paul give you some details about that in his as well, we see clear signals of market expansion, brand awareness, and market leadership.

Robert J. Marshall: I can't really expand much more on that I mean, I guess, what I would tell you is that each quarter, we evaluate our reevaluate to confirm or dismiss our assumptions.

Robert J. Marshall: And as I said in my prepared remarks, and I think we heard Paul sort of detail that in here as well is it.

Robert J. Marshall: We see clear signals of market expansion brand awareness and market leadership.

Robert J. Marshall: And so from that perspective, we learn from this historic data, and we make adjustments to our view of the world. So, you know, it's based on that that we have confidence that we can deliver more than a billion dollars in Polarify sales for the year.

Robert J. Marshall: And so from that perspective, we've learned from these this historic data and we make adjustments to our view of the world.

Robert J. Marshall: It's based on that they we have confidence that we can deliver more than $1 billion and clarify sales for the year.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Roanna Ruiz from Liering,

Speaker Change: Thank you <unk>.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of Roanna Ruiz from Leerink.

Roanna Clarissa H. Ruiz: Great. Good morning, everyone.

Roanna Clarissa H. Ruiz: Great. Good morning, everyone. Another one for clarify I was curious if your strategic partnerships already gaining traction is that driving your guidance raise and since you just mentioned net priced a little bit I was curious if that is going to be sustained through the year.

Roanna Clarissa H. Ruiz: Another one for Polarify. I was curious if your strategic partnerships are already gaining traction. Is that driving your guidance raise? And since you just mentioned net price a little bit, I was curious if that's going to be sustained through the year.

Speaker Change: So I'll take that one so I guess from that from a strategic partnership.

Speaker Change: While Europe is a large market that the launch there is getting just getting underway so from that perspective.

Speaker Change: The contribution.

Speaker Change: Is is de Minimis and that the.

Speaker Change: The guide is really predicated on the U S market and in our efforts here in the U S.

Robert J. Marshall: So, I'll take that one. So, from the strategic partnership point of view, you know, while Europe is a large market, the launch there is just getting underway, so from that perspective, the contribution is de minimis, and that the guide is really predicated on the U.S. market and our efforts here in the U.S. In terms of, you know, the contribution of strategic partnerships using PYL, if you will, within other clinical studies, you know, again, that number, again, is not that significant on a grand scale.

Speaker Change: In terms of.

Speaker Change: The contribution strategic partnerships.

Speaker Change: <unk>, if you will within other clinical studies again that number again is not that significant on a grand in the Grand scheme of things.

Paul M. Blanchfield: I think, Roanna, the other piece to just think through is the strategic partnerships with our key customers in the U.S. As part of the broader remarks, we did note we haven't continued to enter into those strategic partnerships with key customers. We began that in 2023.

Speaker Change: I think we're on the other piece to just think through as the strategic partnerships with our key customers in the U S. As part of the broader remarks. We did note we have and continue to enter into those strategic partnerships with key customers. We began that in 2023, we continue to see traction in 2024.

Paul M. Blanchfield: We will continue to see traction in 2024. That's naturally been one of the drivers, but I would still say, you know, overall, overall market growth continues to grow. As the market leader, strategic partnerships are really around solidifying our position and ensuring that Polarify remains the number one PSMA PET imaging agent going forward. I think we are very pleased with our progress overall, but it is one of multiple strategies to ensure that Polarify continues to grow, and we feel comfortable with its competitive position, its clinical and commercial value proposition, and noting that the TPTPs, which drive some of the strategic partnerships, impact ninety five percent of the approved market currently, and so these products are not interchangeable.

Speaker Change: Sure.

Speaker Change: Naturally banner, but one of the drivers.

But I would still say overall, the overall market growth continues to grow and as the market leader strategic partnerships are really around solidifying our position and ensuring that <unk> remains the number one P. SMA pet imaging agent going forward.

Speaker Change: I think we are very pleased with our progress overall.

Speaker Change: But it is one of multiple strategies to ensure that Polaris high continues to grow.

Speaker Change: And we feel comfortable with its competitive position its clinical and commercial value proposition and noting that the tptb's, which drive some of the strategic partnerships impacts 95% of the approved market currently.

Paul M. Blanchfield: Each of them has differentiated clinical and commercial attributes, and we really deeply understand our customer base, including their site of care mix, whether that's hospital outpatient or otherwise their payer mix, specifically the Medicare fee for service. And as such, we are able to work with them to mitigate the potential impact of any financial exposure given the competitive nature of the business. I'm sure there'll be more questions, but we don't want to elaborate further.

Speaker Change: So these products are not interchangeable each of them have differentiated clinical and commercial attribute and we really deeply understand our customer base, including their site of care mix, whether that's hospital outpatient or otherwise their payer mix specifically the Medicare fee for service and as such we are able to work with them to mitigate the potential impact of any <unk>.

Speaker Change: Actual exposure given the competitive nature of the business I'm sure there'll be more questions, but we don't want to elaborate further at this point.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Richard Newitter from Truist Securities.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Richard <unk> from <unk> Securities.

Richard Samuel Newitter: Hi, thanks for taking the questions and congrats on a great quarter. It's polarizing, but not blockbuster status yet. I can only imagine what that threshold looks like. But maybe just to start off on the contracting question that Roana just asked. Can you give us any sense as to what, what, what percentage of the market or the market that would be impacted by transitional pass-through? Do you think you can get under some sort of contract or, you know, dealt with in your negotiations by the time transitional pass-through expires, and any sense as to kind of where you are today relative to that, you know, goal percentage? And then I have one follow-up question.

Richard: Hi, Thanks for taking the questions and congrats on a great quarter.

Richard: If clarifies not blockbuster status, yet I can only imagine what that threshold looks like.

Richard: But maybe just to start off.

Richard: On the contracting question.

Richard: Ryan just asked.

Richard: Can you give us any sense as to what what what percentage.

Richard: The market or the market that would be impacted by.

Richard: By transitional pass through do you think you can get.

Richard: No.

Richard: Under some sort of contract or dealt with.

Richard: In your negotiations by the time traditional pass through expires.

Richard: Any sense as to kind of where you are today relative to that to that.

Richard: Gold percentage and then I have one follow up.

Brian A. Markison: Yes, Richard, we have a very strong sense of what the future looks like for Polarifi. And, you know, I'm gonna let Paul elaborate, but our strategic agreements with our customers are multi-year in duration. You know, they've all been in the works for quite some time, and the preparation for this has been, you know, like I said, well underway for quite some time. But I'll call Blockbuster at a billion dollars this year. So I'll help you out with that one. Paul, go ahead. Thanks.

Speaker Change: Yes, so Richard.

Speaker Change: We have a very strong sense of what the future looks like for Polaris Sai.

Speaker Change: Im going to let Paul elaborate but our strategic.

Paul M. Blanchfield: Agreements with our customers are multiyear in duration.

Paul M. Blanchfield: They are all been in the works for quite some time.

Paul M. Blanchfield: The preparation for this is Ben.

Paul M. Blanchfield: Said well underway for a while.

Speaker Change: But I'll call blockbuster $1 billion. This year. So I'll help you out with that one Paul go ahead.

Paul M. Blanchfield: Thanks, Rich, and I appreciate the congratulations. As we've shared in the past, TPT impacts the intersection of site-of-care and paramics, and I alluded to this in responding to Roanna. That is really the hospital outpatient setting and the Medicare fee-for-service. And when you look at that intersection, it really only affects about 20 percent of Polarify revenues. It is concentrated in the hospital space.

Paul M. Blanchfield: Thanks, Rich I appreciate the congrats so as we've shared in the past ppt.

Paul M. Blanchfield: Impacts the intersection of site of care and payer mix and I alluded to this and responding to Rwanda that is really the hospital outpatient setting and the Medicare fee for service and when you look at that intersection.

Paul M. Blanchfield: It really only affects about 20% of Polaris high revenues. It is concentrated in the hospital space and so we've understood distance to launch a clarify on the receipt of TPP, we began entering into long term as Brian mentioned strategic partnerships last year.

Paul M. Blanchfield: And so, we've understood this since the launch of Polarify and the receipt of TPT. We began entering into long-term, as Brian mentioned, strategic partnerships last year. We are pleased with our progress, and I think we see continued growth in the market, but we really bring a high-touch interaction with our customers. There is significant overlap as we look at DFINITY, which has been on the market for 20 years, many of which we have long-term relationships with.

Paul M. Blanchfield: We are.

Paul M. Blanchfield: Pleased with our progress and I think we see continued growth in the market.

Paul M. Blanchfield: But we really bring a high touch interaction with our customers. There is significant overlap as we look with definitive which has been on the market for 20 years, many of which we have long term relationships and so the amount of interactions that we're having with our customers to understand the impact to understand their exposure and their sensitivity.

Paul M. Blanchfield: And so, the amount of interactions that we're having with our customers to understand the impact, to understand their exposure and their sensitivity, we continue to make progress there. We're pleased with the progress. We're obviously not going to share any specifics about where we are in being able to wrap that up, given the competitive nature of the business. But suffice it to say, we continue to be incredibly confident with Polarify's leadership position, even amidst the potential expiry of pass-through at the end.

Paul M. Blanchfield: We continue to make progress there.

Paul M. Blanchfield: Pleased with the progress, we're obviously not going to share any specifics about where we are and being able to wrap that up given the competitive nature of the business.

Paul M. Blanchfield: But suffice it to say, we continue to be incredibly confident with Polaris <unk> leadership position, even amidst the potential expiry of pass through at the end of this year.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Operator: One moment for our next question. Our next question comes from the line of Larry Solow from CJS Securities.

Speaker Change: Our next question comes from the line of Larry Solow from CGS CJS Securities.

Lawrence Scott Solow: Great. Good morning.

Lawrence Scott Solow: Great Good morning. Thanks.

Lawrence Scott Solow: Congratulations.

Lawrence Scott Solow: Thanks. I feel the congratulations and a formal welcome to you, Brian, as well. I guess just sticking with the Polarify theme and the Unknown Attendee, Brian Dolliver, Yuan Zhi, Lawrence Solow, Brian Markison,

Lawrence Scott Solow: Welcome to you Brian as well.

Speaker Change: Just sticking with the.

Lawrence Scott Solow: <unk> theme.

Lawrence Scott Solow: The transitional pass through could you just any comments on.

Brian A. Markison: Just the cadence of the year in terms of sales and as we get into the latter part of the year do you see some impact right.

Brian A. Markison: Some of these tend to start preparing is it's hard to switchover a patient during treatment with <unk>.

Brian A. Markison: See some impact from the pass through ahead of that actual exploration, maybe maybe even modest but some kind of impact just thoughts on cadence of sales clarify for the year based on that thanks.

Unknown Attendee: So Larry, I'll pick up the sort of the cadence of sales expectations. You know, I keep referring to the sort of the sequential seasonal trends that we've seen over the last, you know, year plus, where we really do seek sort of, if you think in terms of Q1 being the highest sequential improvement, then Q4, then Q2, then Q3, in sort of a highest to lowest sort of cadence, if you will. But beyond that, I'll let Paul take it from there. Thanks, Larry.

Speaker Change: So Larry I'll pick up the sort of the cadence of sales expectation I keep referring to the sort of the sequential seasonal trends that we've seen over the last year.

Speaker Change: Year, plus where we really do see sort of if you think in terms of.

Lawrence Scott Solow: Quarterly splits we would expect to see Q Q1 is the highest sequential improvement in Q4 than Q2 than Q3 in sort of highest to lowest sort of.

Speaker Change: Sort of the cadence if you will.

Speaker Change: Beyond that ill, let Paul take it from there.

Robert J. Marshall: Thanks, Larry. I think, as Bob mentioned, we continue to see that there are natural seasonal impacts. When we look at the summer months, physicians and imaging center staff do need to go on vacation. So, we do expect some of that. I think overall for the year, the company guided to a mid 20% polarized growth range with the vast majority of that being volume and a somewhat minor net price impact naturally in the 1st quarter.

Speaker Change: Yes.

Paul M. Blanchfield: Thanks, Larry I think as Bob mentioned, we continue to see an actual seasonal impacts when we look at the summer months physicians, an imaging center staff do need to go on vacation. So we do expect some of that I think overall for the year.

Paul M. Blanchfield: The company guided to mid 20% clarify growth range with the vast majority of that being volume and a somewhat minor net price impact naturally in the first quarter, we took a 6% price increase at the beginning of this year, we're going to see a little bit more contribution of that now.

Robert J. Marshall: We took a 6% price increase at the beginning of this year. We're gonna see a little bit more contribution from that now, but as those strategic partnerships further expand, we will see, you know, volume be the larger driver. But otherwise, I would stick with Bob's overall commentary on the sequential.

Speaker Change: Those strategic partnerships further expand.

Speaker Change: We'll see.

Speaker Change: Volume be the larger driver, but otherwise I would stick with Bob's overall commentary on the sequential components.

Paul M. Blanchfield: One moment for our next question, which comes from the line "Yuan Zhu" from B Riley.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of UN Ju from B Riley.

UN Ju: Good morning, Congrats on another great culture, we heard you and your partners are expanding the availability I'll clarify.

UN Ju: We are in the Midwest I am curious is it based on your demand forecast or just building extra capacity there to accommodate at that cusp.

UN Ju: Customers.

UN Ju: Thank you.

Yuan Zhi: Thanks, Yuan. So, yes, we did expand our PMS network in the first quarter. We now have 58 active PMS, and we did add four in the quarter in New York, California, Ohio, and Florida. This is really, in some cases, about additional capacity. In many cases, it is really around the right out-the-door times.

UN Ju: Thanks, you answer yes, we did expand our Pms network in the first quarter. We now have 58 active pms and we did add four in the quarter in New York, California, Ohio, and Florida. This.

Speaker Change: This is really in some cases it is about.

Speaker Change: Additional capacity in many cases, it is really around the right out the door times given the overall growth of the PMA pet imaging market that has been substantial we are seeing demand go earlier in the day as well as later in the day and while <unk> has the longest half life of an approved.

Paul M. Blanchfield: Given the overall growth of the PSMA PET imaging market, which has been substantial, we are seeing demand go earlier in the day as well as later in the day. And while F-18 has the longest half-life of an approved PSMA PET imaging agent of 110 minutes, we still need to be able to make product multiple times during the day to continue to serve that increasing demand. In building out our PMF network, some of it is redundancy, and some of it is really around the capacity to fuel growth at existing sites.

Speaker Change: PMMA pet imaging agent of 110 minutes, we still need to be able to make product multiple times a day to continue to serve that increasing demand and so.

Speaker Change: In building out our Pms network. Some of it is redundancy and some of it is really around the capacity to fuel growth at existing sites.

Paul M. Blanchfield: We want to make sure that we have the right time slot. F-18 is a fantastic isotope, given the size of the PSMA market, with FDG doing approximately 2 million doses, and we can tap into that. There's naturally a role for other agents with shorter half-lives that can be made on a generator, specifically at the margins, but we continue to expand our F-18 capacity to be able to drive that. And we are seeing the majority of growth from those new activated sites be new physicians and new time slots, rather than necessarily cannibalizing existing sites where we're bringing in products.

Speaker Change: Yeah.

Speaker Change: We want to make sure that we have the right time slot.

Speaker Change: <unk> is a fantastic.

Speaker Change: Isotope given the size of the PSA market with FDG doing approximately 2 million doses and we can tap into that there is naturally a role for other agents with shorter half life that can be made on a generator specifically at the margins, but we continue to expand our capacity to be able to drive that and we are.

Speaker Change: We're seeing the majority of growth.

Speaker Change: From those new activated site B, new physicians, and new time slot rather than necessarily cannibalizing existing sites, where we're bringing in product elsewhere.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Justin Walsh from Jones Trading. Hi, thanks for taking the question.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Okay.

Speaker Change: Our next question comes from the line of Justin Walsh from Jones trading.

Justin Howard Walsh: Hi, Thanks for taking the question, it's been great to see your pipeline development.

Justin Howard Walsh: <unk> to expand with the prospective deal here, where do you see your pipeline developing over time.

Justin Howard Walsh: I think we see it developing on two fronts. You know, we're going to be highly selective and maintain our leadership in PET imaging. I think that's very clear. And obviously, radioligand therapy. We're already in the space with the point partnership, prospective partnership. So we are definitively going to be spending a lot more time, BD and M&A, on radioligand therapy and building out the pipeline on that front.

Justin Howard Walsh: Well I think we.

Justin Howard Walsh: See it developing on two fronts, we're going to.

Justin Howard Walsh: Be highly selective and maintain our leadership.

Justin Howard Walsh: And pet imaging I think thats very clear.

Justin Howard Walsh: Obviously radio ligand therapy, we're already in this space with the <unk> partnership prospective partnerships. So we are definitively going to be spending a lot more time, BD and M&A in radio ligand therapy and building out the pipeline on that front.

Operator: One moment for our next question, which comes from the line of Andy Shea from William Blair.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Justin Howard Walsh: Our next question comes from the line of Andy Shay from William Blair.

Andy Shea: Great, thanks for taking our questions and congratulations on the beaten race quarter. So a question for you, Brian, in light of several important developments in the past 24, 48 hours, right, so we saw Mariana getting acquired by Novartis, a complete response reported by Clarity in prostate cancer, just, you know, maybe from a big picture perspective, share your worldview on the radiopharmaceutical field and how Lantheus could really play there. And maybe just a quick one related to radiopharma as well; we saw Novartis showing overall survival hazard ratios down to the, you know, less than 1.0 range, so does that impact your confidence level heading into the Q3 update?

Andy Shay: Great. Thanks for taking our questions and congratulations on the on a beat and raise quarter.

Andy Shay: A question for you Brian in light of several important developments in the past 24 to 48 hours. So we saw Marianna getting acquired by Novartis. The complete response recorded by clarity in prostate cancer.

Brian A. Markison: Maybe from the Big picture perspective share.

Brian A. Markison: Worldview on on the radio pharmaceutical field and how.

Brian A. Markison: PMT is critical really play there.

Brian A. Markison: And maybe just a quick one related to radio pharma as well, we saw novartis showing overall survival hazard ratio down to the less of 1.0 range. So does that impact your confidence level heading into the Q3 update thank you.

Brian A. Markison: Well, with your last comment first, it certainly is encouraging that the passage of time will see a reduction in the point estimate around overall survival. But look, we await the flip of the cards, if you will, and that's why you do the clinical trial to get the answer.

Unknown Speaker: Thank you. Unknown Speaker Hello, everyone. Welcome to the Unknown Speaker webinar. We're here today with the Unknown Speaker to talk about the digital revolution.

Unknown Speaker: We have a lot of questions coming in. We have a lot of questions coming in. We have a lot of questions coming in. And we have a lot of them.

Speaker Change: Well with your last comment first.

Speaker Change: It certainly is encouraging that the passage of time, we will see a reduction in the point estimate around overall survival.

Speaker Change: But look we await the flip of the cards. If you will and that's why you do the clinical trial to get the answer so.

Operator: So we're pretty excited about it, but at the same time, you know, the data will tell us what it tells us at the right time. As far as recent activity in the industry goes, I think it certainly validates the Lantheus platform, if you will, you know, and I think we're seeing a lot of things. I think Novartis is clearly among the big pharma players ahead of the pack, right? Their investments are fairly deep, fairly broad, and their commitment to radioligand therapy is fairly clear.

Speaker Change: We're pretty excited about it but at the same time.

Speaker Change: The data will tell us what it tells us at the right time.

Speaker Change: And as far as the recent activity in the industry.

Speaker Change: I think it's certainly validates the lanthier platform if you will.

Speaker Change: And I think we're seeing a lot of things I think novartis is clearly among the big pharma players ahead of the pack right their investments are fairly deep fairly broad.

Speaker Change: And their commitment to <unk> therapy is fairly clear I think when you look at the other big pharma investments.

Operator: I think when you look at the other big pharma investments, they seem to be platform acquisitions with one lead asset, and they're hoping that works out, but also a lot of science projects. And I think we're going to be, I think, very selective in what we pick up and what we look at. We have that expertise. We don't need a platform because we are the platform. And I think you should just stay tuned, and you'll see some activity from us in the near future.

Speaker Change: They seem to be platform acquisitions with one lead asset and they are hoping that works out but also a lot of science projects.

Speaker Change: We're going to be.

Speaker Change: I think some very selective in what we pick up and what we look at.

Speaker Change: We have that expertise, we don't need a platform because we are the platform.

Speaker Change: And I think just stay tuned and you'll you'll see some activity from us in the near future.

Brian Kemp Dolliver: One moment for our next question. Our next question comes from the line of Kemp Dolliver from Brookline Capital Markets.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of Kim Donovan from Brookline capital markets.

Kim Donovan: Great. Thank you.

Kim Donovan: Back to polar apply.

Kim Donovan: Given your comments about growth in imaging business imaging centers and some of the other initiatives you've undertaken as the mix of site.

Kim Donovan: Ministration changed.

Unknown Attendee: That's a great question. I really appreciate...

Kim Donovan: That's a great question really appreciate.

Paul M. Blanchfield: The focus there, generally speaking, the site mix around hospitals, freestanding imaging centers, and government accounts has not changed materially. We generally view the kind of book of business as being relatively stable with about two-thirds of hospitals, a little bit less than a third of freestanding imaging centers, and then government facilities, both VA, Walter Reed, and others being in that mid-single-digit range. So overall, we continue to recruit new prescribers, but the largest growth is really just increasing demand and prescriptions being sent to those existing sites, all in a relatively comparable portion. Now, overall, we do see increasing Medicare Advantage relative to fee-for-service, and that's just not necessarily a Polarify trend, but it's a pretty typical national trend.

Kim Donovan: The focus there generally speaking the site mix around hospitals freestanding imaging centers.

Kim Donovan: Government accounts have not changed materially.

Kim Donovan: Generally view kind of the book of business as being relatively stable with about two thirds hospitals, a little bit less than a third freestanding imaging centers and then government facilities, both VA, Walter Reed and others being in that mid single digit range.

Kim Donovan: So overall, we continue to activate new prescribers, but the largest growth is really just increasing demand and prescriptions being sent to those existing sites all in a relatively comparable portion now overall, we do see increasing Medicare advantage relative.

Kim Donovan: The fee for service and Thats, just not necessarily a polaris high trend, but overall kind of a national trend is Medicare advantage continues to become more important but the overall site mix relatively comparable year over year.

Unknown Attendee: Unknown Attendee, Brian Dolliver, Yuan Zhi, Lantheus Holdings Inc.

Operator: One moment for our next question. Our next question comes from the line of Tara Bancroft from TD Cowen.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Okay.

Speaker Change: Our next question comes from the line of Tara Bancroft from TD Cowen.

Speaker Change: Hi, there. This is Greg speaking on behalf of Terra. So you have a substantial cash balance that should continue to grow with increased revenue year over year. So can you tell us more about your plans for capital allocation either in terms of R&D marketing for <unk> or potential plans for business development.

Tara Bancroft: So I'll take that. This is Bob.

Robert J. Marshall: Yeah, you know, you're right. We had a record quarter for free cash flow at $118 million. So that was, it was great.

Speaker Change: So I'll take that this is Bob.

Robert J. Marshall: Yes, Youre right, we had a record quarter for free cash flow at $118 million. So that was it was great but I think what you also saw us do in the quarter as deploy $98 million of that with the prospective transactions. So I think from the perspective of what are we going to do with the money, we constantly between management and the board evaluate capital deployment strategies.

Robert J. Marshall: But I think what you also saw us do in the quarter was deploy $98 million of that with the prospective transaction. So from the perspective of what are we going to do with the money, you know, we constantly, between management and the board, evaluate capital deployment strategies. Clearly, as Brian indicated in his remarks, we are going to be busy on the business development front, but Paul also noted internal development, but we also focus on capital structure optimization, and that can include any number of deployment options.

Robert J. Marshall: Clearly as Brian indicated in his remarks, we're going to be we are going to be busy on the business development front, but Paul also noted.

Robert J. Marshall: Internal development, but we also focus on capital structure optimization and that can include.

Robert J. Marshall: Any number of deployment options, but.

Robert J. Marshall: But as we think through, you know, the fact that we have this dry powder, it affords us the ability to look at the landscape of business development opportunities to continue to add to the pipeline and be able to strategically advance important projects internally to solidify our portfolio, which sets us up for growth for the long term.

Robert J. Marshall: As we think through the fact that we have this dry powder.

Robert J. Marshall: <unk> has the ability to look at the landscape of business.

Robert J. Marshall: Development opportunities to continue to add to the pipeline.

Robert J. Marshall: And be able to do strategically advance important projects internally too.

Robert J. Marshall: To solidify our portfolio that sets us up for growth for the long term.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Roanna Ruiz from Liering,

Speaker Change: Thank you.

Speaker Change: One moment far next question.

Speaker Change: Our next question comes from the line of ROE Ana <unk> from Leerink.

Roanna Clarissa H. Ruiz: Hey, thanks for taking the follow-up. I noticed on the call you also mentioned expanded field force and new marketing and education campaign. I was curious, within that, what are you doing to help educate new physician targets and new customers who might not yet have the deep experience with Polarify yet? And how can you help drive their use through the year?

Roanna Clarissa H. Ruiz: Hey, Thanks for taking the follow up so I noticed on the call. You also mentioned expanded field force of new marketing and Education campaign I was curious within that what are you doing to help educate new physician targets in new customers, who might not yet have deep experience with clarify yet and.

Roanna Clarissa H. Ruiz: How can you help drive their use through the year.

Paul M. Blanchfield: Very astute question, Roanna. We did expand the field force, as we noted last year, to be able to call on hospitals, freestanding and imaging centers, as well as referring physicians, namely urologists, who are largely in the stage education, and referring oncologists, medical oncologists, and radiation oncologists. We do see the vast majority of growth coming from existing prescribers. We do believe we've made significant inroads in continuing to educate physicians on that benefit, but we really do this through an omnichannel approach.

Speaker Change: Very astute question Romana, we did expand the field force as we noted last year to be able to call on hospitals freestanding imaging centers as well as referring physicians, namely urologists, which is largely in the staging indication and.

Speaker Change: Referring oncologist medical oncologists and radiation oncologists, we do see the vast majority of growth coming from existing prescribers.

Speaker Change: We do believe we've made significant inroads and continuing to educate physicians on that benefit, but we really do this through an omnichannel approach.

Paul M. Blanchfield: That would be levering both our medical team and appropriately at medical Congresses, where they get called in to answer questions to continue to be significant publications and discussions. If you look at recent medical Congresses, the number of posters that are discussing both therapeutically and diagnostically has significantly grown over the years. So that first starts from a medical perspective to raise awareness appropriately, and then commercially, our sales teams are in accounts, both at treating sites and referring physicians, to raise awareness.

Speaker Change: That would be levering, both our medical team and appropriately at medical Congresses, where they get called in to answer. Your question. There continue to be significant publications in discussions. If you look at recent medical Congresses. The number of posters that are discussing PSM.

Speaker Change: Both therapeutically and diagnostic Lee has significantly grown over the years and so that first starts from a medical perspective to raise awareness appropriately and then commercially our sales teams are in there.

Speaker Change: In accounts, both at treating sites and referring physicians to raise awareness, we continue to gain new data and insights on our prescribing base, which allows us to appropriately target.

Paul M. Blanchfield: We continue to gain new data and insights on our prescribing base, which allows us to appropriately target those referring physicians. And then, naturally, we do appropriate channel marketing efforts, both in appropriate publications and other awareness, including appropriately within the patient segment. We really are seeing the fruits of that investment play out where we made increasing investments in the middle of last year to really generate demand, in addition to just fulfilling it.

Speaker Change: Those of referring physicians and then naturally we do appropriate omnichannel marketing efforts both in appropriate publications.

Speaker Change: And other awareness, including appropriately within the patient segment, we really are seeing the fruits of that investment play out where we made increasing investments in the middle of last year.

Speaker Change: Really generate demand in addition to just fulfill it we believe we appropriately invested ahead of the curve and we believe as the clear market leader and largest voice in the marketplace that we are having a disproportionate impact in driving the overall growth of the Pea SMA imaging market and naturally as the market leader we take it.

Paul M. Blanchfield: We believe we appropriately invested ahead of the curve, and we believe that as the clear market leader and the largest voice in the marketplace, we are having a disproportionate impact on driving the overall growth of the imaging market. And naturally, as the market leader, we take a disproportionate benefit of those games and the growth.

Speaker Change: Disproportionate benefit of those gains and the growth.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Richard Newitter from Truist Securities.

Speaker Change: Thank you one moment far next question.

Speaker Change: Our next question comes from the line of Richard New Winter from <unk> Securities.

Richard Samuel Newitter: Hi, excuse me. Thanks for the follow up here. I just wanted to ask you, you mentioned lifecycle management on Polarify. You kind of gave us a stay tuned, you know, on future indication sets. I'm just wondering what that means and looks like, or if you can elaborate there. And also, I asked this last quarter as well, but a competitor of yours is out there publicly talking about kind of, you know, a PSMA PET diagnostic 2.0 version that could potentially restart the transitional pass-through clock for them.

Speaker Change: Hi, excuse me thanks for the follow up here I just wanted to ask you you mentioned lifecycle management on Polaris Sai you kind of gave us a stay tuned.

Speaker Change: On future indication set so I'm, just wondering what what that means and looks like or if you can elaborate there and also.

Speaker Change: I asked this last quarter as well, but a competitor of yours.

Speaker Change: Is out there publicly talking about kind of.

Speaker Change: Our PMA pet diagnostic 2.0 version that could potentially restart the transitional pass through clock for them.

Richard Samuel Newitter: While you're still off pass-through, and potentially they're still on, I'm just curious. Do you have any insight on how CMS views these? You know, that type of effort. And is that something that you have in the works or could potentially replicate if needed? Thank you.

Speaker Change: While you are still off pass through and potentially they are still on I'm. Just curious do you have any insight on how CMS views.

Speaker Change: That type of.

Speaker Change: Of effort and is that something that.

Speaker Change: You had in the works or could potentially replicate if needed. Thank you.

Brian A. Markison: Yeah, Richard, thanks. A lot of good questions wrapped up into that. And I think, you know, we are holding our product improvements and lifecycle management strategies fairly close to the vest. Like you, we have listened to what other companies have said about their approach to A2.0 and passed it through, and we have a particularly good knowledge of what needs to happen in order to make that work. So I'm not sure how much we want to elaborate, but Paul, I think if you want, you can add a little bit there. Thanks, Rich. You know,

Speaker Change: Yes, Richard Thanks.

Speaker Change: A lot of good questions wrapped up into that and I think we are holding.

Speaker Change: Our product improvements lifecycle management strategies fairly.

Speaker Change: Close to the vest.

Speaker Change: Like you we have listened to what other companies have said about their approach to a 2.0 and pass through and we have a particularly good.

Speaker Change: <unk> of what needs to happen in order to make that work.

Speaker Change: So I'm not sure how much we want to elaborate but Paul I think if you want you can add a little bit there. Thanks.

Paul M. Blanchfield: Thanks, Rich. You know, we very much understand the pathways that are being discussed out there in the marketplace. We have been aware of them. We believe, just for context, to be eligible for transitional pass-through, based on current regulatory pathways and CMS requirements, you do need a new NDA. There are multiple paths to get there.

Paul M. Blanchfield: Thanks Rich.

Paul M. Blanchfield: We very much understand the pathways that are being discussed out there in the marketplace, we have been aware of them.

Paul M. Blanchfield: We believe just for context setting to be eligible for transitional pass through based on current regulatory pathways and CMS requirements, you do need a new NDA.

Paul M. Blanchfield: Our team consistently monitors, as Brian mentioned, developments in the industry, and we consider multiple options to support our ability to maintain patient access and really maximize the value of the entire portfolio. We don't feel the need to share our internal plans at this point publicly, but we will do so when appropriate. But overall, I think the key message for Polarify right now is that we're focused on delivering over a billion dollars in sales for Polarify this year, making it the first ever pet imaging blockbuster.

Paul M. Blanchfield: There are multiple paths to get there our team consistently monitors as Brian mentioned as developments in the industry and we consider multiple options to support our ability to maintain patient access and really maximize the value of the entire portfolio.

Speaker Change: We don't feel the need to share our internal plans at this point publicly and we will do so when appropriate.

Speaker Change: But overall I think the key messages for Polaris <unk> right now is that we're focused on delivering over $1 billion in sales for clarify this year, making it the first ever pet imaging blockbuster executing strategies, including brand awareness strategic partnerships with key customers that we've talked about supporting CMS and congressional actions to mitigate that.

Paul M. Blanchfield: Executing strategies, including brand awareness, strategic partnerships with key customers that we've talked about, supporting CMS and congressional actions to mitigate that impact, and really expanding the market through our education efforts as well as lifecycle management. And we look forward to delivering on those and sharing more about some of the questions you asked.

Speaker Change: And really expanding the market through our education efforts as well as lifecycle management and we look forward to delivering on those and sharing more about some of the questions you asked when appropriate.

Operator: One moment for our next question, which comes from the line of Andy Tsai from William Blair.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Okay.

Speaker Change: Our next question comes from the line of Andrew Tsai from William Blair.

Andy Tsai: Okay, thanks for allowing me to ask a second question. So, at the risk of sounding like an overly sensitive cell site analyst, you made a very interesting comment on the BD strategy. Specifically focusing on radial ligands, I just want to clarify, are you signaling a preference over other modalities such as antibodies or various peptide-based contracts as you survey the landscape?

Andrew Tsai: Great. Thanks for.

Andrew Tsai: Allowing me to ask.

Andrew Tsai: <unk> second question so.

Andrew Tsai: At the risk of sounding like a overly sensitive as sell side analysts you made it very easily comment on the BD strategy.

Andrew Tsai: Specifically focusing on radio like and I just wanted to clarify are you signaling a preference over other modalities such as antibodies or various peptide based contracts as you.

Unknown Speaker: Well, I mean, I think at Lantheus we would naturally have a bias, but... You know, look, RLTs are coming of age. The ability to target tumors more effectively with less off-target toxicity is really evolving, but it's just another modality. And, you know, if you look at the overall market, it's a small piece of the total cancer market. So, you know, it's emerging, it's growing, it's exciting. We're seeing lots of, you know, valuations jump because big pharma is paying a lot of attention to the space.

Unknown Speaker: Well,

Andrew Tsai: Survey the landscape.

Speaker Change: Well I mean, I think Atlanta is we would naturally have a bias but.

Speaker Change: Look.

Speaker Change: Our ltvs are coming of age the ability to target.

Speaker Change: The tumors more effectively with less off target toxicity is really evolving but it's just another modality.

Speaker Change: And if you look at the overall market. It's a small piece of the total cancer market. So it's emerging it's growing it's exciting.

Andrew Tsai: We're seeing lots of.

Andrew Tsai: Evaluations jumped by big pharma paying a lot of attention to the space. So I guess you could say, it's validated from that perspective, but I mean look the simple truth is the.

Unknown Speaker: So I guess you could say it's validated from that perspective, but I mean, look, the simple truth is, you know, the technology has proven to the point where you can really deliver, you know, a smarter bomb to the tumor with less toxin to the patient, and they can continue to go on and receive additional lines of therapy. So I think it's exciting, it's evolving, but it is, I can't tell you I have a preference, but I certainly have a bias based on the business I'm in.

Andrew Tsai: The technology is proved to the point, where you can really deliver.

Andrew Tsai: Smarter bond to the tumor with less talks to the patient.

Andrew Tsai: And they can continue to go on and receive additional lines of therapy. So I think it's.

Andrew Tsai: It's exciting it's evolving but it is.

Speaker Change: I can't tell you I have a preference.

Speaker Change: But I certainly have a bias based on the business momentum.

Operator: Thank you. Ladies and gentlemen, there are no further questions at this time. Thank you for participating in today's conference. This concludes the program. You may disconnect, and have a wonderful day.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, there are no further questions at this time.

Speaker Change: Thank you for participating in today's conference. This concludes the program you may disconnect and have a wonderful day.

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