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Description

Effective Date
for Company

Effect on the Condensed Consolidated Financial Statements

Accounting Standards Adopted During the Nine Months Ended September 30, 2017

ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

ASU 2016-09 simplifies several aspects of the stock compensation guidance in Topic 718 and other related guidance providing the following amendments:

•   Accounting for income taxes upon vesting or exercise of share-based payments and related EPS effects

•   Classification of excess tax benefits on the statement of cash flows

•   Accounting for forfeitures

•   Liability classification exception for statutory tax withholding requirements

•   Cash flow presentation of employee taxes paid when an employer withholds shares for tax-withholding purposes

•   Elimination of the indefinite deferral in Topic 718

For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.

January 1, 2017

The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	LNTH
Entity Registrant Name	LANTHEUS HOLDINGS, INC.
Entity Central Index Key	0001521036
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		37,505,996

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 68,077	$ 51,178
Accounts receivable, net	41,713	36,818
Inventory	23,032	17,640
Other current assets	3,789	5,183
Total current assets	136,611	110,819
Property, plant & equipment, net	94,516	94,187
Intangibles, net	12,645	15,118
Goodwill	15,714	15,714
Other long-term assets	21,535	20,060
Total assets	281,021	255,898
Current liabilities
Current portion of long-term debt	2,750	3,650
Revolving line of credit	0	0
Accounts payable	18,756	18,940
Accrued expenses and other liabilities	24,581	21,249
Total current liabilities	46,087	43,839
Asset retirement obligations	10,151	9,370
Long-term debt, net	265,523	274,460
Other long-term liabilities	37,176	34,745
Total liabilities	358,937	362,414
Commitments and contingencies (See Note 12)
Stockholders’ deficit
Preferred stock ($0.01 par value, 25,000 shares authorized; no shares issued and outstanding)	0	0
Common stock ($0.01 par value, 250,000 shares authorized; 37,498 and 36,756 shares issued and outstanding, respectively)	375	367
Additional paid-in capital	228,934	226,462
Accumulated deficit	(306,139)	(332,398)
Accumulated other comprehensive loss	(1,086)	(947)
Total stockholders’ deficit	(77,916)	(106,516)
Total liabilities and stockholders’ deficit	$ 281,021	$ 255,898

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	37,498,000	36,756,000
Common stock, shares outstanding (in shares)	37,498,000	36,756,000

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 79,941	$ 73,063	$ 250,137	$ 227,503
Cost of goods sold	41,414	39,382	125,901	124,370
Gross profit	38,527	33,681	124,236	103,133
Operating expenses
Sales and marketing	10,075	8,706	31,892	27,856
General and administrative	12,076	10,091	35,549	28,842
Research and development	3,554	2,849	14,149	8,493
Total operating expenses	25,705	21,646	81,590	65,191
Gain on sales of assets	0	(560)	0	(6,505)
Operating income	12,822	12,595	42,646	44,447
Interest expense	4,442	6,792	14,147	20,799
Debt retirement costs	0	1,415	0	1,415
Loss on extinguishment of debt	0	0	2,161	0
Other (income) expense	(908)	148	(2,037)	(317)
Income before income taxes	9,288	4,240	28,375	22,550
Provision for income taxes	762	20	2,116	657
Net income	$ 8,526	$ 4,220	$ 26,259	$ 21,893
Net income per common share outstanding
Basic (in dollars per share)	$ 0.23	$ 0.14	$ 0.71	$ 0.71
Diluted (in dollars per share)	$ 0.22	$ 0.13	$ 0.67	$ 0.71
Weighted-average common shares outstanding
Basic (in shares)	37,393	31,221	37,174	30,658
Diluted (in shares)	39,121	32,402	38,971	31,049

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 8,526	$ 4,220	$ 26,259	$ 21,893
Other comprehensive (loss) income
Reclassification adjustment for gains on sales of assets included in net income	0	435	0	435
Foreign currency translation	(115)	234	(139)	490
Total other comprehensive (loss) income	(115)	669	(139)	925
Total comprehensive income	$ 8,411	$ 4,889	$ 26,120	$ 22,818

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net income	$ 26,259	$ 21,893
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	15,019	12,664
Amortization of debt related costs	1,031	1,235
Provision for excess and obsolete inventory	1,002	982
Stock-based compensation	3,764	1,869
Gain on sales of assets	0	(6,505)
Loss on extinguishment of debt and debt retirement costs	2,161	1,415
Other	1,404	(254)
Increases (decreases) in cash from operating assets and liabilities
Accounts receivable	(4,609)	1,071
Inventory	(6,361)	(1,658)
Other current assets	54	(1,032)
Accounts payable	(270)	2,684
Accrued expenses and other liabilities	2,237	2,497
Net cash provided by operating activities	41,691	36,861
Investing activities
Proceeds from sales of assets	1,234	10,541
Capital expenditures	(11,589)	(4,976)
Other	0	74
Net cash (used in) provided by investing activities	(10,355)	5,639
Financing activities
Payments on long-term debt	(285,979)	(57,790)
Proceeds from issuance of long-term debt	274,313	0
Proceeds from issuance of common stock	187	41,600
Payments for public offering costs	0	(1,266)
Proceeds from stock option exercises	1,210	61
Payments for minimum statutory tax withholding related to net share settlement of equity awards	(2,681)	(552)
Deferred financing costs	(1,576)	(11)
Other	(74)	0
Net cash used in financing activities	(14,600)	(17,958)
Effect of foreign exchange rates on cash and cash equivalents	163	57
Net increase in cash and cash equivalents	16,899	24,599
Cash and cash equivalents, beginning of period	51,178	28,596
Cash and cash equivalents, end of period	$ 68,077	$ 53,195

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017 or any future period. The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities Exchange Commission (“SEC”) on February 23, 2017. Certain immaterial amounts in the prior period have been reclassified to conform to the current period financial statement presentation. Manufacturing Concentrations The Company currently relies on Jubilant HollisterStier (“JHS”) as its sole source manufacturer of DEFINITY, Neurolite, Cardiolite and evacuation vials for TechneLite. The Company has on-going development and technology transfer activities for a next generation DEFINITY product with Samsung BioLogics (“SBL”) located in Songdo, South Korea, approximately 20 miles southwest of Seoul, but can give no assurances as to when those technology transfer activities will be completed and when the Company will begin to receive supply of a next generation DEFINITY product from SBL. In addition, those activities could be adversely affected by on-going political and military tensions on the Korean peninsula.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Collaboration and License Agreement with GE Healthcare Limited

On April 25, 2017, the Company announced that it entered into a definitive, exclusive Collaboration and License Agreement (the “License Agreement”) with GE Healthcare Limited (“GE Healthcare”) for the continued Phase III development and worldwide commercialization of flurpiridaz F 18, an investigational positron emission tomography myocardial perfusion imaging agent that may improve the diagnosis of coronary artery disease. Under the License Agreement, GE Healthcare will complete the worldwide development of flurpiridaz F 18, pursue worldwide regulatory approvals and, if successful, lead a worldwide launch and commercialization of the agent, with LMI collaborating on both development and commercialization through a joint steering committee. LMI has an option to co-promote the agent in the U.S. GE Healthcare’s development plan will initially focus on obtaining regulatory approval for flurpiridaz F 18 in the U.S., Japan, Europe and Canada.

Under the terms of the License Agreement, the Company received an up-front payment of $5.0 million. In addition, the Company is eligible to receive, from GE Healthcare, up to $60 million in regulatory and sales-based milestones and tiered double-digit royalties on U.S. sales and mid-single digit royalties on sales outside the U.S. Because the Company concluded there was only one significant deliverable under the License Agreement, consisting of the license of the product which occurred upon the signing of the License Agreement, the Company recognized $5.0 million associated with entering into the license as revenue during the nine months ended September 30, 2017. In addition, because the Company concluded that the regulatory and sales-based milestones are solely dependent on GE Healthcare’s performance and there are no continuing performance obligations from the Company, all development and sales milestones under the License Agreement are considered non-substantive. As of September 30, 2017, the Company has not recognized revenue for those milestones under the License Agreement and will recognize such revenue in the periods in which the milestones are achieved. Similarly, the Company will recognize royalty revenues in the periods of the sale of the related products, provided that the reported sales are reliably measurable, collectability is reasonably assured and the Company has no further performance obligations.

Recent Accounting Pronouncements

The following table provides a description of recent accounting pronouncements that may have a material effect on the Company’s condensed consolidated financial statements:



Standard	Description	Effective Date for Company	Effect on the Condensed Consolidated Financial Statements
Recently Issued Accounting Standards Not Yet Adopted

ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting	This ASU clarifies when to account for a change to the terms or conditions of a share–based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance.	January 1, 2018	The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements.

ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and related additional amendments ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, ASU 2017-05, ASU 2017-10	This ASU and related amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: • A full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or • A modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).	January 1, 2018	The Company has established an implementation team which includes third-party specialists to assist in the evaluation and implementation of the new standard. The Company has completed its assessment of the impact of the standards on its contract portfolio by reviewing the Company’s current accounting policies and practices and identifying potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company has categorized its customers into multiple customer types and assessed significant customer arrangements within those customer types. The Company is currently in the process of formalizing its conclusion. At this time, the Company does not anticipate a significant impact to its revenue upon adoption of the new standard. The Company, in part due to the limited anticipated impact, will utilize the modified retrospective approach of adopting the ASU. In addition, during 2017 the Company has begun to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability of fair value measurements, financial instruments are categorized based on a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:


•	Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

•

Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).


•	Level 3 — Unobservable inputs that reflect a Company’s estimates about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

At September 30, 2017 and December 31, 2016, the Company’s financial assets measured at fair value on a recurring basis consist of money market funds. The Company invests excess cash from its operating cash accounts in overnight investments and reflects these amounts in cash and cash equivalents in the condensed consolidated balance sheets at fair value using quoted prices in active markets for identical assets.

The table below presents information about the Company’s assets and liabilities measured at fair value on a recurring basis:



	Total Fair Value		Level 1		Level 2		Level 3
September 30, 2017	(in thousands)
Money market funds	$	6,565	$	6,565	$	—	$	—
	$	6,565	$	6,565	$	—	$	—
December 31, 2016
Money market funds	$	3,565	$	3,565	$	—	$	—
	$	3,565	$	3,565	$	—	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full year in addition to discrete events which impact the interim period. The Company’s effective tax rate differs from the U.S. statutory rate principally due to the change in valuation allowance and the rate impact of uncertain tax positions. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective tax rate is determined. The Company’s tax provision was $0.8 million and $20,000 for the three months ended September 30, 2017 and 2016, respectively, and $2.1 million and $0.7 million for the nine months ended September 30, 2017 and 2016, respectively. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realizability of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more-likely-than-not realizable, the Company evaluated all available positive and negative evidence, and weighed the objective evidence and expected impact. Evidence the Company considered included its history of net operating losses, which resulted in the Company recording a full valuation allowance against its domestic net deferred tax assets beginning in 2011, and in each year thereafter. The Company was profitable on a cumulative basis for the three-year period ended September 30, 2017, but substantially all of that profitability was achieved during 2016 and the nine months ended September 30, 2017. The Company continues to evaluate other negative evidence including customer concentration and contractual risk, DEFINITY supplier risk, the risk of Moly supply availability and cost, and certain product development risks, all of which provide for uncertainties around the Company’s future level of profitability. Based on its review of all available evidence, the Company determined that it has not yet attained a sustained level of profitability sufficient to outweigh the objectively verifiable negative evidence, and has recorded a full valuation allowance against its domestic net deferred tax assets at September 30, 2017. The Company will continue to assess the level of the valuation allowance required. If a sufficient weight of positive evidence exists in future periods to support a release of some or all of the valuation allowance recorded against domestic deferred tax assets, such a release would likely have a material impact on the Company’s results of operations in that future period. In connection with the Company’s acquisition of the medical imaging business from Bristol-Myers Squibb (“BMS”) in 2008, the Company entered into a tax indemnification agreement with BMS related to certain tax obligations arising prior to the acquisition of the Company, for which the Company has the primary legal obligation. The tax indemnification receivable is recognized within other long-term assets. The changes in the tax indemnification asset are recognized within other income in the condensed consolidated statement of operations. In accordance with the Company’s accounting policy, the change in the contingent tax liability, and penalties and interest associated with these obligations (net of any offsetting federal or state benefit) is recognized within the tax provision. Accordingly, as these reserves change, adjustments are included in the tax provision while the offsetting adjustment is included in other income. Assuming that the receivable from BMS continues to be considered recoverable by the Company, there is no net effect on earnings related to these liabilities and no net cash outflows.

Inventory

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following:



(in thousands)	September 30, 2017		December 31, 2016
Raw materials	$	10,699	$	9,658
Work in process	5,571		3,965
Finished goods	6,762		4,017
Total inventory	$	23,032	$	17,640

As of September 30, 2017 and December 31, 2016, the Company had $1.2 million of inventory classified within other long-term assets, which represent raw materials not expected to be used by the Company during the next twelve months.

Property, Plant & Equipment, Net

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant & Equipment, Net

Property, plant & equipment, net, consisted of the following:



(in thousands)	September 30, 2017			December 31, 2016
Land	$	14,950		$	14,950
Buildings	74,864			70,628
Machinery, equipment and fixtures	69,549			65,407
Computer software	18,463			18,482
Construction in progress	10,068			7,224
	187,894			176,691
Less: accumulated depreciation and amortization	(93,378		)	(82,504		)
Total property, plant & equipment, net	$	94,516		$	94,187

Depreciation and amortization expense related to property, plant & equipment, net, was $2.7 million for the three months ended September 30, 2017 and 2016 and $11.7 million and $8.1 million for the nine months ended September 30, 2017 and 2016, respectively.

Asset Retirement Obligations

9 Months Ended

Sep. 30, 2017

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

The Company considers its legal obligation to remediate its facilities upon a decommissioning of its radioactive-related operations as an asset retirement obligation. The Company has production facilities which manufacture and process radioactive materials at its North Billerica, Massachusetts and San Juan, Puerto Rico sites.

The Company is required to provide the U.S. Nuclear Regulatory Commission and Massachusetts Department of Public Health financial assurance demonstrating the Company’s ability to fund the decommissioning of its North Billerica, Massachusetts production facility upon closure, although the Company does not intend to close the facility. The Company has provided this financial assurance in the form of a $28.2 million surety bond.

The fair value of a liability for asset retirement obligations is recognized in the period in which the liability is incurred. As of September 30, 2017, the liability is measured at the present value of the obligation expected to be incurred, of approximately $26.9 million, and is adjusted in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying values of the related long-lived assets and depreciated over the assets’ useful lives.

The following table provides a summary of the changes in the Company’s asset retirement obligations:



(in thousands)	Amount
Balance at January 1, 2017	$	9,370
Accretion expense	781
Balance at September 30, 2017	$	10,151

Financing Arrangements

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Financing Arrangements

On March 30, 2017, the Company refinanced its previous $365 million seven-year term loan agreement (the facility thereunder, the “2015 Term Facility”) with a new five-year $275 million term loan facility (the “2017 Term Facility” and the loans thereunder, the “Term Loans”). In addition, the Company replaced its previous $50.0 million five-year asset based loan facility (the “ABL Facility”) with a new $75.0 million five-year revolving credit facility (the “2017 Revolving Facility” and, together with the 2017 Term Facility, the “2017 Facility”). The terms of the 2017 Facility are set forth in that certain Amended and Restated Credit Agreement, dated as of March 30, 2017 (the “Credit Agreement”), by and among Holdings, the Company, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent. The 2017 Term Facility was issued net of a $0.7 million discount. The Company has the right to request an increase to the 2017 Term Facility or request the establishment of one or more new incremental term loan facilities, in an aggregate principal amount of up to $75.0 million, plus additional amounts, in certain circumstances.

The net proceeds of the 2017 Term Facility, together with approximately $15.3 million of cash on hand, were used to refinance in full the aggregate remaining principal amount of the loans outstanding under the 2015 Term Facility and pay related interest, transaction fees and expenses. No amounts were outstanding under the ABL Facility at that time. The Company accounted for the refinancing as both a debt extinguishment and debt modification by evaluating the refinancing on a creditor by creditor basis. The Company recorded a loss on extinguishment of debt of $2.2 million related to the write-off of unamortized debt issuance costs and incurred general and administrative expenses of $1.7 million related to third-party costs associated with the modified debt. In addition, the Company incurred and capitalized $1.6 million of new debt issuance costs related to the refinancing.

2017 Term Facility

The Term Loans under the 2017 Term Facility bear interest, with pricing based from time to time at the Company’s election at (i) LIBOR plus a spread of 4.50% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 3.50%. Interest is payable (i) with respect to LIBOR Term Loans, at the end of each Interest Period (as defined in the Credit Agreement) and (ii) with respect to Base Rate Term Loans, at the end of each quarter. At September 30, 2017, the Company’s interest rate under the 2017 Term Facility was 5.7%.

The Company is permitted to voluntarily prepay the Term Loans, in whole or in part. The 2017 Term Facility requires the Company to make mandatory prepayments of the outstanding Term Loans in certain circumstances. The 2017 Term Facility amortizes at 1.00% per year until its June 30, 2022 maturity date.

The Company’s maturities of principal obligations under the 2017 Term Facility are as follows as of September 30, 2017:



(in thousands)	Amount
Remainder of 2017	$	688
2018	2,750
2019	2,750
2020	2,750
2021	2,750
2022	261,937
Total principal outstanding	273,625
Unamortized debt discount	(2,273		)
Unamortized debt issuance costs	(3,079		)
Total	268,273
Less: current portion	(2,750		)
Total long-term debt	$	265,523

2017 Revolving Facility

Under the terms of the 2017 Revolving Facility, the lenders thereunder agreed to extend credit to the Company from time to time until March 30, 2022 (the “Revolving Termination Date”) consisting of revolving loans (the “Revolving Loans” and, together with the Term Loans, the “Loans”) in an aggregate principal amount not to exceed $75.0 million (the “Revolving Commitment”) at any time outstanding. The 2017 Revolving Facility includes a $20.0 million sub-facility for the issuance of letters of credit (the “Letters of Credit”). The Letters of Credit and the borrowings under the 2017 Revolving Facility are expected to be used for working capital and other general corporate purposes.

The Revolving Loans under the 2017 Revolving Facility bear interest, with pricing based from time to time at the Company’s election at (i) LIBOR plus a spread of 3.50% or (ii) the Base Rate (as defined in the Credit Agreement) plus a spread of 2.50%. The 2017 Revolving Facility also includes an unused line fee, which is set at 0.375% while the Company’s secured leverage ratio (as defined in the Credit Agreement) is greater than 3.00 to 1.00 and 0.25% when the Company’s secured leverage ratio is less than or equal to 3.00 to 1.00.

The Company is permitted to voluntarily prepay the Revolving Loans, in whole or in part, or reduce or terminate the Revolving Commitment, in each case, without premium or penalty. On any business day on which the total amount of outstanding Revolving Loans and Letters of Credit exceeds the total Revolving Commitment, the Company must prepay the Revolving Loans in an amount equal to such excess. As of September 30, 2017, there were no outstanding borrowings under the 2017 Revolving Facility.

2017 Facility Covenants

The 2017 Facility contains a number of affirmative, negative, reporting and financial covenants, in each case subject to certain exceptions and materiality thresholds. The 2017 Facility requires the Company to be in quarterly compliance, measured on a trailing four quarter basis, with a financial covenant. The maximum consolidated leverage ratio permitted by the financial covenant is displayed in the table below:

2017 Facility Financial Covenant



Period	Consolidated Leverage Ratio
Q3 2017 through Q1 2018	5.00 to 1.00
Q2 2018 through Q1 2019	4.75 to 1.00
Thereafter	4.50 to 1.00

The 2017 Facility contains usual and customary restrictions on the ability of the Company and its subsidiaries to: (i) incur additional indebtedness (ii) create liens; (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; (iv) sell certain assets; (v) pay dividends on, repurchase or make distributions in respect of capital stock or make other restricted payments; (vi) make certain investments; (vii) repay subordinated indebtedness prior to stated maturity; and (viii) enter into certain transactions with its affiliates.

Upon an event of default, the administrative agent under the Credit Agreement will have the right to declare the Loans and other obligations outstanding immediately due and payable and all commitments immediately terminated or reduced.

The 2017 Facility is guaranteed by Holdings and Lantheus MI Real Estate, LLC (“LMI-RE”), and obligations under the 2017 Facility are generally secured by first priority liens over substantially all of the assets of each of LMI, Holdings and LMI-RE (subject to customary exclusions set forth in the transaction documents) owned as of March 30, 2017 or thereafter acquired.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

The following table presents stock-based compensation expense recognized in the Company’s accompanying condensed consolidated statements of operations:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2017		2016		2017		2016
Cost of goods sold	$	198	$	120	$	514	$	259
Sales and marketing	183		123		474		251
General and administrative	1,089		487		2,315		1,065
Research and development	187		147		461		294
Total stock-based compensation expense	$	1,657	$	877	$	3,764	$	1,869

Increase in Shares Reserved Under the 2015 Equity Incentive Plan

At the Company’s annual meeting of stockholders, held on April 27, 2017 (the “Annual Meeting”), the Company’s stockholders approved an amendment to the 2015 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance thereunder by 1,200,000 shares, to an aggregate of 5,755,277 shares.

Employee Stock Purchase Plan

At the Annual Meeting, the Company’s stockholders also approved the 2017 Employee Stock Purchase Plan (“2017 ESPP”), which authorized the issuance of up to 250,000 shares of common stock thereunder. Under the terms of the 2017 ESPP, eligible U.S. employees can elect to acquire shares of the Company’s common stock through periodic payroll deductions during a series of six month offering periods, which will generally begin in March and September of each year. Purchases under the 2017 ESPP are effected on the last business day of each offering period at a 15% discount to the closing price on that day. The 2017 ESPP was implemented, subject to stockholder approval, on March 10, 2017, and the first purchases thereunder were made on September 13, 2017.

Net Income Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net Income Per Common Share

Basic net income per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, plus the potential dilutive effect of other securities if those securities were converted or exercised. During periods in which the Company incurs net losses, both basic and diluted loss per share is calculated by dividing the net loss by the weighted-average shares outstanding and potentially dilutive securities are excluded from the calculation because their effect would be antidilutive.



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2017		2016		2017		2016
Net income	$	8,526	$	4,220	$	26,259	$	21,893
Basic weighted-average common shares outstanding	37,393		31,221		37,174		30,658
Effect of dilutive stock options	318		1,084		371		391
Effect of dilutive restricted stock awards	1,410		97		1,426		—
Diluted weighted-average common shares outstanding	39,121		32,402		38,971		31,049
Basic income per common share outstanding	$	0.23	$	0.14	$	0.71	$	0.71
Diluted income per common share outstanding	$	0.22	$	0.13	$	0.67	$	0.71

Antidilutive securities excluded from diluted income per common share	322		448		378		1,873

Other (Income) Expense

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Other (Income) Expense

Other (income) expense consisted of the following:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2017			2016			2017			2016
Foreign currency (gains) losses	$	(414	)	$	349		$	(554	)	$	330
Tax indemnification income	(489		)	(196		)	(1,469		)	(632		)
Other income	(5		)	(5		)	(14		)	(15		)
Total other (income) expense	$	(908	)	$	148		$	(2,037	)	$	(317	)

Legal Proceedings and Contingencies	9 Months Ended
Legal Proceedings and Contingencies	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings and Contingencies	Legal Proceedings and Contingencies From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. In addition, the Company has in the past been, and may in the future be, subject to investigations by governmental and regulatory authorities, which expose it to greater risks associated with litigation, regulatory or other proceedings, as a result of which the Company could be required to pay significant fines or penalties. The outcome of litigation, regulatory or other proceedings cannot be predicted with certainty, and some lawsuits, claims, actions or proceedings may be disposed of unfavorably to the Company. In addition, intellectual property disputes often have a risk of injunctive relief which, if imposed against the Company, could materially and adversely affect its financial condition or results of operations. As of September 30, 2017, the Company has no material ongoing litigation in which the Company was a party or any material ongoing regulatory or other proceedings and had no knowledge of any investigations by government or regulatory authorities in which the Company is a target that could have a material adverse effect on its current business.

Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions

Related party expenses consisted of the following:



		Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	Transaction Type	2017		2016		2017		2016
Avista Capital Partners, L.P. and its affiliates*	Offering costs paid on behalf of Avista pursuant to registration rights agreement	$	—	$	—	$	326	$	—
INC Research Holdings, Inc. (“INC”)**	Pharmacovigilance services	—		293		—		647
VWR Scientific*	Inventory supplies	—		60		297		245
Total related party expenses		$	—	$	353	$	623	$	892

* During the quarter ended September 30, 2017, Avista Capital Partners, L.P., Avista Capital Partners (Offshore), L.P. and ACP-Lantern Co-Invest, LLC (collectively, “Avista”) distributed approximately 6.3 million shares of common stock of the Company in the aggregate, representing the remainder of their holdings in the Company. The transactions were effected as distributions-in-kind of the Company’s common stock to the investors in those investment funds. As such, Avista and VWR Scientific (an entity in which Avista had an interest) are no longer related parties.

** During the year ended December 31, 2016, investment funds affiliated with Avista disposed of shares of INC common stock held by them. As a result, such investment funds were no longer a principal owner of INC. Related party expenses included in this table represent expenses incurred during the period under which investment funds affiliated with Avista held an investment in INC.

Amounts billed and unbilled for related parties included in accounts payable and accrued expenses are immaterial at December 31, 2016.

Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

The Company reports two operating segments, U.S. and International, based on geographic customer base. The results of these operating segments are regularly reviewed by the Company’s chief operating decision maker, the President and Chief Executive Officer. The Company’s segments derive revenues through the manufacture, marketing, selling and distribution of medical imaging products, focused primarily on cardiovascular diagnostic imaging. All goodwill has been allocated to the U.S. operating segment. The Company does not identify or allocate assets to its segments.

Selected information for each operating segment is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2017			2016		2017			2016
Revenues from external customers
U.S.	$	69,579		$	62,621	$	218,706		$	192,687
International	10,362			10,442		31,431			34,816
Total revenues from external customers	$	79,941		$	73,063	$	250,137		$	227,503
Operating income
U.S.	$	12,243		$	11,649	$	40,306		$	35,941
International	579			946		2,340			8,506
Total operating income	12,822			12,595		42,646			44,447
Interest expense	4,442			6,792		14,147			20,799
Debt retirement costs	—			1,415		—			1,415
Loss on extinguishment of debt	—			—		2,161			—
Other (income) expense	(908		)	148		(2,037		)	(317		)
Income before income taxes	$	9,288		$	4,240	$	28,375		$	22,550

Subsequent Events (Notes)	9 Months Ended
Subsequent Events (Notes)	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 30, 2017, LMI entered into a binding commercial supply arrangement pursuant to which LMI will supply Cardinal Health with TechneLite generators, Xenon, Neurolite and other products through 2018. The supply arrangement specifies pricing levels and requires Cardinal Health to purchase minimum volumes of certain products from LMI during certain periods. The supply arrangement will expire on December 31, 2018 and may be terminated upon the occurrence of specified events, including a material breach by the other party and certain force majeure events.

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Lantheus Holdings, Inc. and its direct and indirect wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement have been included. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017 or any future period.

The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8 of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities Exchange Commission (“SEC”) on February 23, 2017. Certain immaterial amounts in the prior period have been reclassified to conform to the current period financial statement presentation.

Manufacturing Concentrations

The Company currently relies on Jubilant HollisterStier (“JHS”) as its sole source manufacturer of DEFINITY, Neurolite, Cardiolite and evacuation vials for TechneLite. The Company has on-going development and technology transfer activities for a next generation DEFINITY product with Samsung BioLogics (“SBL”) located in Songdo, South Korea, approximately 20 miles southwest of Seoul, but can give no assurances as to when those technology transfer activities will be completed and when the Company will begin to receive supply of a next generation DEFINITY product from SBL. In addition, those activities could be adversely affected by on-going political and military tensions on the Korean peninsula.

Recent Accounting Pronouncements

The following table provides a description of recent accounting pronouncements that may have a material effect on the Company’s condensed consolidated financial statements:



Standard	Description	Effective Date for Company	Effect on the Condensed Consolidated Financial Statements
Recently Issued Accounting Standards Not Yet Adopted

ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting	This ASU clarifies when to account for a change to the terms or conditions of a share–based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance.	January 1, 2018	The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements.

ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and related additional amendments ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, ASU 2017-05, ASU 2017-10	This ASU and related amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: • A full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or • A modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).	January 1, 2018	The Company has established an implementation team which includes third-party specialists to assist in the evaluation and implementation of the new standard. The Company has completed its assessment of the impact of the standards on its contract portfolio by reviewing the Company’s current accounting policies and practices and identifying potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company has categorized its customers into multiple customer types and assessed significant customer arrangements within those customer types. The Company is currently in the process of formalizing its conclusion. At this time, the Company does not anticipate a significant impact to its revenue upon adoption of the new standard. The Company, in part due to the limited anticipated impact, will utilize the modified retrospective approach of adopting the ASU. In addition, during 2017 the Company has begun to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard.

Summary of Significant Accounting Policies Recent Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Recent Accounting Pronouncements

The following table provides a description of recent accounting pronouncements that may have a material effect on the Company’s condensed consolidated financial statements:



Standard	Description	Effective Date for Company	Effect on the Condensed Consolidated Financial Statements
Recently Issued Accounting Standards Not Yet Adopted

ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting	This ASU clarifies when to account for a change to the terms or conditions of a share–based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance.	January 1, 2018	The Company does not expect that the adoption of this standard will have a material impact on the Company’s condensed consolidated financial statements.

ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and related additional amendments ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, ASU 2017-05, ASU 2017-10	This ASU and related amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. The standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: • A full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or • A modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures).	January 1, 2018	The Company has established an implementation team which includes third-party specialists to assist in the evaluation and implementation of the new standard. The Company has completed its assessment of the impact of the standards on its contract portfolio by reviewing the Company’s current accounting policies and practices and identifying potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company has categorized its customers into multiple customer types and assessed significant customer arrangements within those customer types. The Company is currently in the process of formalizing its conclusion. At this time, the Company does not anticipate a significant impact to its revenue upon adoption of the new standard. The Company, in part due to the limited anticipated impact, will utilize the modified retrospective approach of adopting the ASU. In addition, during 2017 the Company has begun to identify and implement, if necessary, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents information about the Company’s assets and liabilities measured at fair value on a recurring basis:



	Total Fair Value		Level 1		Level 2		Level 3
September 30, 2017	(in thousands)
Money market funds	$	6,565	$	6,565	$	—	$	—
	$	6,565	$	6,565	$	—	$	—
December 31, 2016
Money market funds	$	3,565	$	3,565	$	—	$	—
	$	3,565	$	3,565	$	—	$	—

Inventory (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following:



(in thousands)	September 30, 2017		December 31, 2016
Raw materials	$	10,699	$	9,658
Work in process	5,571		3,965
Finished goods	6,762		4,017
Total inventory	$	23,032	$	17,640

Property, Plant & Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant & Equipment, Net

Property, plant & equipment, net, consisted of the following:



(in thousands)	September 30, 2017			December 31, 2016
Land	$	14,950		$	14,950
Buildings	74,864			70,628
Machinery, equipment and fixtures	69,549			65,407
Computer software	18,463			18,482
Construction in progress	10,068			7,224
	187,894			176,691
Less: accumulated depreciation and amortization	(93,378		)	(82,504		)
Total property, plant & equipment, net	$	94,516		$	94,187

Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2017

Asset Retirement Obligation Disclosure [Abstract]

Summary of Changes in Asset Retirement Obligations

The following table provides a summary of the changes in the Company’s asset retirement obligations:



(in thousands)	Amount
Balance at January 1, 2017	$	9,370
Accretion expense	781
Balance at September 30, 2017	$	10,151

Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Maturities of Principal Obligations Under New Term Facility

The Company’s maturities of principal obligations under the 2017 Term Facility are as follows as of September 30, 2017:



(in thousands)	Amount
Remainder of 2017	$	688
2018	2,750
2019	2,750
2020	2,750
2021	2,750
2022	261,937
Total principal outstanding	273,625
Unamortized debt discount	(2,273		)
Unamortized debt issuance costs	(3,079		)
Total	268,273
Less: current portion	(2,750		)
Total long-term debt	$	265,523

Schedule of Term Facility Financial Covenant

The maximum consolidated leverage ratio permitted by the financial covenant is displayed in the table below:

2017 Facility Financial Covenant



Period	Consolidated Leverage Ratio
Q3 2017 through Q1 2018	5.00 to 1.00
Q2 2018 through Q1 2019	4.75 to 1.00
Thereafter	4.50 to 1.00

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-Based Compensation Expense Recognized

The following table presents stock-based compensation expense recognized in the Company’s accompanying condensed consolidated statements of operations:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2017		2016		2017		2016
Cost of goods sold	$	198	$	120	$	514	$	259
Sales and marketing	183		123		474		251
General and administrative	1,089		487		2,315		1,065
Research and development	187		147		461		294
Total stock-based compensation expense	$	1,657	$	877	$	3,764	$	1,869

Net Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Summary of Net Income Per Common Share

During periods in which the Company incurs net losses, both basic and diluted loss per share is calculated by dividing the net loss by the weighted-average shares outstanding and potentially dilutive securities are excluded from the calculation because their effect would be antidilutive.



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2017		2016		2017		2016
Net income	$	8,526	$	4,220	$	26,259	$	21,893
Basic weighted-average common shares outstanding	37,393		31,221		37,174		30,658
Effect of dilutive stock options	318		1,084		371		391
Effect of dilutive restricted stock awards	1,410		97		1,426		—
Diluted weighted-average common shares outstanding	39,121		32,402		38,971		31,049
Basic income per common share outstanding	$	0.23	$	0.14	$	0.71	$	0.71
Diluted income per common share outstanding	$	0.22	$	0.13	$	0.67	$	0.71

Antidilutive securities excluded from diluted income per common share	322		448		378		1,873

Other Income (Tables)

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Schedule of Other (Income) Expense

Other (income) expense consisted of the following:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2017			2016			2017			2016
Foreign currency (gains) losses	$	(414	)	$	349		$	(554	)	$	330
Tax indemnification income	(489		)	(196		)	(1,469		)	(632		)
Other income	(5		)	(5		)	(14		)	(15		)
Total other (income) expense	$	(908	)	$	148		$	(2,037	)	$	(317	)

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Related Party Expenses

Related party expenses consisted of the following:



		Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	Transaction Type	2017		2016		2017		2016
Avista Capital Partners, L.P. and its affiliates*	Offering costs paid on behalf of Avista pursuant to registration rights agreement	$	—	$	—	$	326	$	—
INC Research Holdings, Inc. (“INC”)**	Pharmacovigilance services	—		293		—		647
VWR Scientific*	Inventory supplies	—		60		297		245
Total related party expenses		$	—	$	353	$	623	$	892

Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Selected Information for Each Operating Segment

Selected information for each operating segment is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2017			2016		2017			2016
Revenues from external customers
U.S.	$	69,579		$	62,621	$	218,706		$	192,687
International	10,362			10,442		31,431			34,816
Total revenues from external customers	$	79,941		$	73,063	$	250,137		$	227,503
Operating income
U.S.	$	12,243		$	11,649	$	40,306		$	35,941
International	579			946		2,340			8,506
Total operating income	12,822			12,595		42,646			44,447
Interest expense	4,442			6,792		14,147			20,799
Debt retirement costs	—			1,415		—			1,415
Loss on extinguishment of debt	—			—		2,161			—
Other (income) expense	(908		)	148		(2,037		)	(317		)
Income before income taxes	$	9,288		$	4,240	$	28,375		$	22,550

Summary of Significant Accounting Policies - Additional Information (Detail) - Collaboration and License Agreement - GE Healthcare Limited - USD ($)		9 Months Ended
	Apr. 25, 2017	Sep. 30, 2017
Schedule Of Accounting Policies [Line Items]
Upfront cash payment received	$ 5,000,000	$ 5,000,000
Milestone revenues expected upon achievement of milestones	$ 60,000,000
Milestone revenues recognized under license agreement		$ 0

Fair Value of Financial Instruments - Schedule of the Information about the Company's Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 6,565	$ 3,565
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	6,565	3,565
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,565	3,565
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	6,565	3,565
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 762	$ 20	$ 2,116	$ 657

Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 10,699	$ 9,658
Work in process	5,571	3,965
Finished goods	6,762	4,017
Total inventory	$ 23,032	$ 17,640

Inventory - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Other long-term assets
Inventory [Line Items]
Raw materials	$ 1.2	$ 1.2

Property, Plant & Equipment, Net - Schedule of Property, Plant & Equipment, Net (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant & Equipment [Line Items]
Property, plant & equipment, gross	$ 187,894	$ 176,691
Less: accumulated depreciation and amortization	(93,378)	(82,504)
Total property, plant & equipment, net	94,516	94,187
Land
Property, Plant & Equipment [Line Items]
Property, plant & equipment, gross	14,950	14,950
Buildings
Property, Plant & Equipment [Line Items]
Property, plant & equipment, gross	74,864	70,628
Machinery, equipment and fixtures
Property, Plant & Equipment [Line Items]
Property, plant & equipment, gross	69,549	65,407
Computer software
Property, Plant & Equipment [Line Items]
Property, plant & equipment, gross	18,463	18,482
Construction in progress
Property, Plant & Equipment [Line Items]
Property, plant & equipment, gross	$ 10,068	$ 7,224

Property, Plant & Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, plant and equipment
Property, Plant & Equipment [Line Items]
Depreciation and amortization	$ 2.7	$ 2.7	$ 11.7	$ 8.1

Asset Retirement Obligations - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Financial assurance in form of surety bond	$ 28.2
Asset retirement obligation liabilities expected, present value	$ 26.9

Asset Retirement Obligations - Summary of Changes in Company's Asset Retirement Obligations (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations, beginning balance	$ 9,370
Accretion expense	781
Asset retirement obligations, ending balance	$ 10,151

Financing Arrangements - Additional Information (Detail) - USD ($)		9 Months Ended
	Mar. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 2,200,000	$ 2,161,000	$ 1,415,000
Third-party costs associated with modified debt	1,700,000
Capitalized debt issuance costs	1,600,000
2015 Term Facility
Debt Instrument [Line Items]
Debt instrument, face amount	$ 365,000,000
Debt instrument, term (in years)	7 years
Cash paid during the execution of refinancing	$ 15,300,000
Amount outstanding	0
2017 Term Facility
Debt Instrument [Line Items]
Debt instrument, face amount	$ 275,000,000
Debt instrument, term (in years)	5 years
Debt instrument, discount amount	$ 700,000
Increase in aggregate principle amount	75,000,000
Amount outstanding		$ 273,625,000
Interest rate at end of period		5.70%
Amortization (in percentage)		1.00%
2017 Term Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (in percentage)		4.50%
2017 Term Facility \| Reference Rate
Debt Instrument [Line Items]
Basis spread on variable rate (in percentage)		3.50%
Asset Based Loan Facility
Debt Instrument [Line Items]
Debt instrument, face amount	$ 50,000,000
Debt instrument, term (in years)	5 years
2017 Revolving Facility
Debt Instrument [Line Items]
Debt instrument, face amount	$ 75,000,000	$ 75,000,000
Debt instrument, term (in years)	5 years
Outstanding borrowing		$ 0
2017 Revolving Facility \| Leverage Ratio Range One
Debt Instrument [Line Items]
Unused line of credit fee (in percentage)		0.375%
Debt instrument covenant leverage ratio		300.00%
2017 Revolving Facility \| Leverage Ratio Range Two
Debt Instrument [Line Items]
Unused line of credit fee (in percentage)		0.25%
Debt instrument covenant leverage ratio		300.00%
2017 Revolving Facility \| Letter of Credit
Debt Instrument [Line Items]
Debt instrument, face amount		$ 20,000,000
2017 Revolving Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (in percentage)		3.50%
2017 Revolving Facility \| Reference Rate
Debt Instrument [Line Items]
Basis spread on variable rate (in percentage)		2.50%

Financing Arrangements - Schedule of Maturities of Principal Obligations Under New Term Facility (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Less: current portion	$ (2,750)	$ (3,650)
Total long-term debt	265,523	$ 274,460
2017 Term Facility
Debt Instrument [Line Items]
Remainder of 2017	688
2018	2,750
2019	2,750
2020	2,750
2021	2,750
2022	261,937
Total principal outstanding	273,625
Unamortized debt discount	(2,273)
Unamortized debt issuance costs	(3,079)
Total	268,273
Less: current portion	(2,750)
Total long-term debt	$ 265,523

Financing Arrangements - Schedule of Term Facility Financial Covenant (Detail) - 2017 Facility	9 Months Ended
	Sep. 30, 2017
Q3 2017 through Q1 2018
Debt Instrument [Line Items]
Total net leverage ratio	500.00%
Q2 2018 through Q1 2019
Debt Instrument [Line Items]
Total net leverage ratio	475.00%
Thereafter
Debt Instrument [Line Items]
Total net leverage ratio	450.00%

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,657	$ 877	$ 3,764	$ 1,869
Cost of goods sold
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	198	120	514	259
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	183	123	474	251
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,089	487	2,315	1,065
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 187	$ 147	$ 461	$ 294

Stock-Based Compensation - Additional Information (Detail)	Apr. 27, 2017 shares
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, additional shares authorized (in shares)	1,200,000
Share based compensation, shares authorized (in shares)	5,755,277
2017 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, shares authorized (in shares)	250,000
Employee stock purchase plan offering period	6 months
Percentage of discount on closing price	15.00%

Net Income Per Common Share - Summary of Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Line Items]
Net income	$ 8,526	$ 4,220	$ 26,259	$ 21,893
Basic weighted-average common shares outstanding (in shares)	37,393	31,221	37,174	30,658
Effect of dilutive stock options (in shares)	318	1,084	371	391
Effect of dilutive restricted stock awards (in shares)	1,410	97	1,426	0
Diluted weighted-average common shares outstanding (in shares)	39,121	32,402	38,971	31,049
Basic income per common share outstanding (in dollars per share)	$ 0.23	$ 0.14	$ 0.71	$ 0.71
Diluted income per common share outstanding (in dollars per share)	$ 0.22	$ 0.13	$ 0.67	$ 0.71
Stock options \| Nonvested restricted stock
Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted income per common share (in shares)	322	448	378	1,873

Other Income - Schedule of Other Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Foreign currency (gains) losses	$ (414)	$ 349	$ (554)	$ 330
Tax indemnification income	(489)	(196)	(1,469)	(632)
Other income	(5)	(5)	(14)	(15)
Total other (income) expense	$ (908)	$ 148	$ (2,037)	$ (317)

Related Party Transactions - Summary of Related Party Expenses (Detail) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Total related party expenses	$ 0	$ 353	$ 623	$ 892
Distributions-in-kind of common stock (in shares)	6.3
Pharmacovigilance services \| INC Research Holdings, Inc.
Related Party Transaction [Line Items]
Total related party expenses	$ 0	293	0	647
Avista \| Offering costs paid on behalf of Avista pursuant to registration rights agreement
Related Party Transaction [Line Items]
Total related party expenses	0	0	326	0
VWR Scientific \| Inventory supplies
Related Party Transaction [Line Items]
Total related party expenses	$ 0	$ 60	$ 297	$ 245

Segment Information - Additional Information (Detail)	9 Months Ended
Segment Information - Additional Information (Detail)	Sep. 30, 2017 Segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information - Schedule of Selected Information for Each Business Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenues from external customers	$ 79,941	$ 73,063	$ 250,137	$ 227,503
Operating income
Operating income	12,822	12,595	42,646	44,447
Interest expense	4,442	6,792	14,147	20,799
Debt retirement costs	0	1,415	0	1,415
Loss on extinguishment of debt	0	0	2,161	0
Other (income) expense	(908)	148	(2,037)	(317)
Income before income taxes	9,288	4,240	28,375	22,550
U.S.
Segment Reporting Information [Line Items]
Revenues from external customers	69,579	62,621	218,706	192,687
Operating income
Operating income	12,243	11,649	40,306	35,941
International
Segment Reporting Information [Line Items]
Revenues from external customers	10,362	10,442	31,431	34,816
Operating income
Operating income	$ 579	$ 946	$ 2,340	$ 8,506