UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 11, 2016

LANTHEUS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)

 
 	 	 	 	 	
Delaware	 	001-36569	 	35-2318913	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
331 Treble Cove Road, North Billerica, MA 01862
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (978) 671-8001
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 1.01	Entry into a Material Definitive Agreement.	
On August 11, 2016, Lantheus Medical Imaging, Inc. (“LMI”), operating subsidiary of Lantheus Holdings, Inc. (the “Company”), entered into a share purchase agreement (the “Purchase Agreement”) pursuant to which it sold all of the stock in its Australian radiopharmaceutical servicing subsidiary to one of its existing radiopharmacy customers, Global Medical Solutions, Ltd. (the “Buyer”).
The sale price for the share sale contemplated by the Purchase Agreement (the “Transaction”) was AUD$2.0 million in cash, which is subject to certain working capital adjustments relating to a target working capital amount of AUD$650,000; working capital amounts in excess of that will be remitted to LMI. The Purchase Agreement contained customary representations, warranties and covenants by each of the parties. Subject to certain limitations, the Buyer will be indemnified for damages resulting from breaches or inaccuracies of LMI’s representations, warranties and covenants in the Purchase Agreement.
As part of the Transaction, LMI and GMS also entered into a long-term supply and distribution contract under which LMI will supply GMS and its subsidiaries with LMI’s products on commercial terms and under which GMS has agreed to certain product purchase commitments.
The Company’s and LMI’s press release announcing the Transaction is attached as Exhibit 99.1 hereto and incorporated by reference herein.
 
Item 2.01	Completion of Acquisition or Disposition of Assets.	
The Transaction was completed on August 11, 2016.
The Company’s (i) unaudited, pro forma consolidated balance sheet as of June 30, 2016 and (ii) unaudited, pro forma consolidated statements of operations for the six months ended June 30, 2016 and for the fiscal year ended December 31, 2015 are included as Exhibit 99.2 hereto and are incorporated by reference herein.
These unaudited, pro forma consolidated financial statements do not reflect (i) the pro forma impact of the long-term supply and distribution agreement described in Item 1.01 or (ii) any potential purchase price adjustments.
The information set forth in Item 1.01 of this current report on Form 8-K is incorporated by reference into this Item 2.01 of this current report on Form 8-K.
 
Item 9.01.	Financial Statements and Exhibits.	
(d) Exhibits

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release of Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc., dated August 11, 2016, announcing the divestiture of its Australian radiopharmacy servicing business.	
 	 	
99.2	  	Unaudited pro forma consolidated financial statements of Lantheus Holdings, Inc.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LANTHEUS HOLDINGS, INC.	
 	 	
By:	 	/s/ Michael P. Duffy	
Name:	 	Michael P. Duffy	
Title:	 	General Counsel, Secretary and Senior Vice President, Strategy and Business Development	
Date: August 11, 2016

EXHIBIT INDEX

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release of Lantheus Holdings, Inc. and Lantheus Medical Imaging, Inc., dated August 11, 2016, announcing the divestiture of its Australian radiopharmacy servicing business.	
 	 	
99.2	  	Unaudited pro forma consolidated financial statements of Lantheus Holdings, Inc.	

Exhibit 99.1

CONTACT:
Meara Murphy
978-671-8508
LANTHEUS HOLDINGS ANNOUNCES DIVESTITURE OF ITS AUSTRALIAN RADIOPHARMACY SERVICING BUSINESS AND ENTRY INTO LONG-TERM SUPPLY AND DISTRIBUTION AGREEMENT
Transaction Simplifies Service and Distribution Model in Australia;
Expands International Reach of Products
NORTH BILLERICA, Mass. (August 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
 
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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.
 
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Exhibit 99.2
LANTHEUS HOLDINGS, INC. AND SUBSIDARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
JUNE 30, 2016

(in thousands, except share data)	  	As Reported	 	 	Pro Forma
Adjustments (1)	 	 	Pro Forma As
Adjusted	 	
Assets	  	 	 	 	 	 	 	 	 	 	 	 	
Current assets	  	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	54,851	  	 	$	1,237	  	 	$	56,088	  	
Accounts receivable, net	  	 	39,457	  	 	 	(1,639	) 	 	 	37,818	  	
Inventory	  	 	14,433	  	 	 	(394	) 	 	 	14,039	  	
Other current assets	  	 	4,282	  	 	 	(189	) 	 	 	4,093	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total current assets	  	 	113,023	  	 	 	(985	) 	 	 	112,038	  	
Property, plant and equipment, net	  	 	84,422	  	 	 	(1	) 	 	 	84,421	  	
Capitalized software development costs, net	  	 	8,121	  	 	 	—  	  	 	 	8,121	  	
Intangibles, net	  	 	17,949	  	 	 	(260	) 	 	 	17,689	  	
Goodwill	  	 	15,714	  	 	 	—  	  	 	 	15,714	  	
Other long-term assets	  	 	20,038	  	 	 	(47	) 	 	 	19,991	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	259,267	  	 	$	(1,293	) 	 	$	257,974	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Deficit	  	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities	  	 	 	 	 	 	 	 	 	 	 	 	
Line of credit	  	 	—  	  	 	 	—  	  	 	 	—  	  	
Accounts payable	  	 	12,778	  	 	 	(489	) 	 	 	12,289	  	
Accrued expenses and other liabilities	  	 	17,664	  	 	 	(426	) 	 	 	17,238	  	
Current portion of long-term debt	  	 	3,650	  	 	 	—  	  	 	 	3,650	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total current liabilities	  	 	34,092	  	 	 	(915	) 	 	 	33,177	  	
Asset retirement obligations	  	 	8,650	  	 	 	—  	  	 	 	8,650	  	
Long-term debt, net	  	 	348,838	  	 	 	—  	  	 	 	348,838	  	
Other long-term liabilities	  	 	34,055	  	 	 	82	  	 	 	34,137	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	425,635	  	 	 	(833	) 	 	 	424,802	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Commitments and contingencies	  	 	 	 	 	 	 	 	 	 	 	 	
Stockholders’ deficit	  	 	 	 	 	 	 	 	 	 	 	 	
Preferred stock	  	 	—  	  	 	 	—  	  	 	 	—  	  	
Common stock	  	 	303	  	 	 	—  	  	 	 	303	  	
Additional paid-in capital	  	 	176,545	  	 	 	—  	  	 	 	176,545	  	
Accumulated deficit	  	 	(341,487	) 	 	 	(1,041	) 	 	 	(342,528	) 	
Accumulated other comprehensive loss	  	 	(1,729	) 	 	 	581	  	 	 	(1,148	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ deficit	  	 	(166,368	) 	 	 	(460	) 	 	 	(166,828	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and stockholders’ deficit	  	$	259,267	  	 	$	(1,293	) 	 	$	257,974	  	

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LANTHEUS HOLDINGS, INC. AND SUBSIDARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2016

(in thousands, except per share data)	  	As Reported	 	 	Pro Forma
Adjustments
(2)(3)	 	 	Pro Forma As
Adjusted	 	
Revenues	  	$	154,440	  	 	$	(4,834	) 	 	$	149,606	  	
Cost of goods sold	  	 	84,988	  	 	 	(4,185	) 	 	 	80,803	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	69,452	  	 	 	(649	) 	 	 	68,803	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  	 	 	 	 	 	 	 	 	 	 	 	
Sales and marketing expenses	  	 	19,150	  	 	 	(72	) 	 	 	19,078	  	
General and administrative expenses	  	 	18,751	  	 	 	(215	) 	 	 	18,536	  	
Research and development expenses	  	 	5,644	  	 	 	—  	  	 	 	5,644	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	43,545	  	 	 	(287	) 	 	 	43,258	  	
Gain on sale of assets	  	 	5,945	  	 	 	—  	  	 	 	5,945	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	31,852	  	 	 	(362	) 	 	 	31,490	  	
Interest expense, net	  	 	(13,996	) 	 	 	—  	  	 	 	(13,996	) 	
Other income, net	  	 	454	  	 	 	45	  	 	 	499	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	18,310	  	 	 	(317	) 	 	 	17,993	  	
Provision for income taxes	  	 	637	  	 	 	33	  	 	 	670	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	17,673	  	 	 	(350	) 	 	 	17,323	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net income per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	0.58	  	 	 	 	 	 	$	0.57	  	
Diluted	  	$	0.58	  	 	 	 	 	 	$	0.57	  	
Weighted average common shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	30,373	  	 	 	 	 	 	 	30,373	  	
Diluted	  	 	30,454	  	 	 	 	 	 	 	30,454	  	
 
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LANTHEUS HOLDINGS, INC. AND SUBSIDARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2015

(in thousands, except per share data)	  	As Reported	 	 	Pro Forma
Adjustments
(2)(3)	 	 	Pro Forma As
Adjusted	 	
Revenues	  	$	293,461	  	 	$	(9,678	) 	 	$	283,783	  	
Cost of goods sold	  	 	157,939	  	 	 	(7,977	) 	 	 	149,962	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	135,522	  	 	 	(1,701	) 	 	 	133,821	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  	 	 	 	 	 	 	 	 	 	 	 	
Sales and marketing expenses	  	 	34,740	  	 	 	(134	) 	 	 	34,606	  	
General and administrative expenses	  	 	43,894	  	 	 	(322	) 	 	 	43,572	  	
Research and development expenses	  	 	14,358	  	 	 	—  	  	 	 	14,358	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	92,992	  	 	 	(456	) 	 	 	92,536	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	42,530	  	 	 	(1,245	) 	 	 	41,285	  	
Interest expense, net	  	 	(38,691	) 	 	 	—  	  	 	 	(38,691	) 	
Loss on extinguisment of debt	  	 	(15,528	) 	 	 	—  	  	 	 	(15,528	) 	
Other expense, net	  	 	(89	) 	 	 	(265	) 	 	 	(354	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Loss before income taxes	  	 	(11,778	) 	 	 	(1,510	) 	 	 	(13,288	) 	
Provision for income taxes	  	 	2,968	  	 	 	(325	) 	 	 	2,643	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	 	(14,746	) 	 	 	(1,185	) 	 	 	(15,931	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Net loss per common share:	  	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted	  	$	(0.60	) 	 	 	 	 	 	$	(0.65	) 	
Weighted average common shares outstanding	  	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted	  	 	24,440	  	 	 	 	 	 	 	24,440	  	
 
(1)	Pro Forma Adjustments represent: (a) cash proceeds of $1.5 million ($2.0 million AUD) less estimated transaction costs and (b) the related assets and liabilities that were included in the share purchase agreement.	
(2)	Pro Forma Adjustments represent the elimination of historical revenues and expenses contributing to consolidated results relating to the Australian subsidiary.	
(3)	Pro Forma Adjustments do not include revenues and expenses related to the long-term supply and distribution contract entered into by the Company and Global Medical Solutions, Ltd.	
 
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