Skip to main content

Market Overview

Credit Suisse Impressed By Lantheus Holdings' Market Leadership, But Wary Of Increasing Competition

Share:
Credit Suisse Impressed By Lantheus Holdings' Market Leadership, But Wary Of Increasing Competition

Credit Suisse assumed coverage of Lantheus Holdings Inc (NASDAQ: LNTH) with a Neutral rating and $8 price target, as it is wary of heightened competition despite acknowledging the company's market leadership in DEFINITY/Xenon franchises, strong industry fundamentals and pipeline opportunities.

DEFINITY

DEFINITY, an injectable ultrasound contrast imaging agent used in echocardiography, has 80 percent share of contrast echocardiography market in United States and accounts for 41 percent of company sales. However, the brokerage expects DEFINITY to lose some share over time with the entry of competitor Bracco's (Lumason) into the market earlier this year.

Xenon

The company's other key product Xenon, a radiopharmaceutical gas used to assess pulmonary functions, also faces competition from a player who "re-entered the market earlier this year."

The brokerage expects "essentially flat" revenues in 2016, with growth in DEFINITY product offset by declines in Xenon on increased competition and slowness in noncore product lines.

Related Link: Hologic Investors Cheer As Barclays Upgrades To Overweight: "Stronger For Longer" On Breast Health

"DEFINITY should benefit from rising demand across the ultrasound contrast agent market globally, growing at an estimated 30 percent CAGR to $650 million by 2020, direct sales initiatives, and global expansion. However, we acknowledge the potential of a more challenging competitive landscape," analyst Erin Wilson wrote in a note.

Tailwinds Ahead?

Wilson said the upcoming catalysts include an update on potential F-18 partnerships and pending trials by its China partner for DEFINITY, as well as updates on competitive positioning within key markets.

That said, the analyst cut his 2016 EPS view to $0.60 from $0.73 and 2017 EPS estimate to $0.78 from $0.87 to reflect increasing competition near term and adjustments to one-time items.

Shares of Lantheus were down 2.98 percent on Friday, trading at $8.80.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for LNTH

DateFirmActionFromTo
Feb 2021Credit SuisseMaintainsNeutral
Feb 2021SVB LeerinkMaintainsOutperform
Feb 2021SVB LeerinkInitiates Coverage OnOutperform

View More Analyst Ratings for LNTH
View the Latest Analyst Ratings

 

Related Articles (LNTH)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Health Care Price Target Initiation Reiteration Analyst Ratings Movers

Latest Ratings

StockFirmActionPT
GOOGLMizuhoMaintains2,600.0
VZIOWells FargoInitiates Coverage On31.0
TWTROppenheimerMaintains85.0
SBUXOppenheimerMaintains135.0
OMWells FargoInitiates Coverage On63.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com