Transaction Simplifies Service and Distribution Model in Australia;
Expands International Reach of Products
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Aug. 11, 2016--
Lantheus
Holdings, Inc. (“Lantheus” or the “Company”) (NASDAQ: LNTH), parent
company of Lantheus
Medical Imaging, Inc. (“LMI”), a global
leader in the development, manufacture and commercialization of
innovative diagnostic imaging agents and products, today announced the
sale of its radiopharmacy servicing business in Australia to Global
Medical Solutions, Ltd. (“GMS”). As part of the transaction, LMI and GMS
also entered into a long-term supply and distribution contract under
which LMI will continue to supply GMS and its affiliates with LMI’s
products on commercial terms and under which GMS has agreed to certain
product purchase commitments.
The transaction includes Lantheus’ radiopharmacy servicing business in
greater Melbourne, Victoria and in greater Adelaide, South Australia.
These radiopharmacies prepare individual, patient-ready doses of single
photon emission computed tomography (SPECT)-based radiopharmaceuticals,
which are sold by the radiopharmacies to healthcare providers for
administration to patients. The long-term supply and distribution
contract provides for Lantheus’ products to continue to be available in
those markets.
In addition, Lantheus has appointed GMS as a distributor of its
radiopharmaceuticals, including nuclear medicine products and cold kits,
in Australia and other international markets served in GMS’s
international footprint, as well as the distributor of DEFINITY® Vial
for (Perflutren Lipid Microsphere) Injectable Suspension in Australia
and New Zealand, two countries in which that contrast agent is already
approved and sold.
“This transaction simplifies our service and distribution model in
Australia and expands the international reach of our products,” said
Mary Anne Heino, President and Chief Executive Officer of Lantheus. “Our
agreements with GMS align with our business strategy to continually look
for opportunities to improve operational efficiencies and customer
service. Through our long-term supply and distribution agreement with
GMS, we will continue to provide industry-leading nuclear medicine
products and contrast agents to healthcare providers and their patients
in Australia as well as a number of other international markets served
by GMS. We look forward to working closely with GMS to execute a
seamless transition for customers, patients, suppliers and employees.”
“This transaction further expands GMS's geographical presence in
Australia and extends our breath of services and products in that
country. Moreover, the transaction adds valued local market expertise to
GMS's existing service offering. Expanding our geographical reach in
Australia is an important step for GMS. It strengthens our position as
an Australian nation-wide partner with the medical imaging community by
adding to our ability to service clients on a local level,” added Haig
S. Bagerdjian, Chairman and Chief Executive Officer of GMS. “We look
forward to continuing our long running relationship with Lantheus
through our newly solidified commercial arrangement, which we believe
will help both companies reach their short and long-term goals.”
While moving to this new service and distribution model in the
Australian market is expected to result in a modest decrease in revenue
going forward, the Company expects the resulting cost savings associated
with divesting the radiopharmacy servicing operations and the revenue
anticipated under the long-term supply and distribution agreement will
together be accretive to Adjusted EBITDA compared to historical levels.
About Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc.
Lantheus
Holdings, Inc. is the parent company of Lantheus Medical Imaging, Inc.,
a global leader in the development, manufacture and commercialization of
innovative diagnostic imaging agents and products. LMI provides a broad
portfolio of products, which are primarily used for the diagnosis of
cardiovascular diseases. LMI’s key products include the echocardiography
contrast agent DEFINITY® Vial for (Perflutren Lipid
Microsphere) Injectable Suspension; TechneLite® (Technetium
Tc99m Generator), a technetium-based generator that provides the
essential medical isotope used in nuclear medicine procedures; and Xenon
(Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent used to
evaluate pulmonary function and for imaging the lungs. LMI is
headquartered in North Billerica, Massachusetts with offices in Puerto
Rico and Canada. For more information, visit www.lantheus.com.
Safe Harbor for Forward-Looking and Cautionary Statements
This
press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties that
may be described from time to time in our filings with the Securities
and Exchange Commission. Readers are cautioned not to place undue
reliance on the forward-looking statements contained herein, which speak
only as of the date hereof. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result of
new information, future developments or otherwise, except as may be
required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160811006174/en/
Source: Lantheus Holdings, Inc.
Lantheus Holdings, Inc.
Meara Murphy, 978-671-8508
