What changed in this filing

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Item 1. Financial Statements

2023-08-03 compared with 2023-05-04 · 135 added, 86 removed, 517 unchanged (30% of the section changed)

33 unchanged sentences

Common stock ($ 0.01 par value, 250,000 shares authorized;

69,630 and 68,851 shares issued as of March 31, 2023 and December 31, 2022, respectively)

69,755 and 68,851 shares issued as of June 30, 2023 and December 31, 2022, respectively)

Additional paid-in capital 729,733 715,875

Treasury Stock at cost - 1,339 shares as of March 31, 2023 and December 31, 2022

Treasury Stock at cost - 1,339 shares as of June 30, 2023 and December 31, 2022

( 75,000 ) ( 75,000 )

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Revenues $ 321,700 $ 223,723 $ 622,484 $ 432,603

6 unchanged sentences

Total operating expenses 78,508 74,825 164,928 144,970

Operating (loss) income ( 9,344 ) 58,925

Operating income 124,139 63,204 114,795 122,129

Interest expense 4,933 1,469 9,924 2,978

Other income ( 4,482 ) ( 310 ) ( 7,713 ) ( 795 )

(Loss) income before income taxes ( 11,104 ) 57,901

Income tax (benefit) expense ( 8,297 ) 14,939

Net (loss) income $ ( 2,807 ) $ 42,962

Net (loss) income per common share:

Income before income taxes 123,688 62,045 112,584 119,946

Income tax expense 29,557 18,987 21,260 33,926

Net income $ 94,131 $ 43,058 $ 91,324 $ 86,020

Net income per common share:

Basic $ 1.38 $ 0.63 $ 1.34 $ 1.26

5 unchanged sentences

Lantheus Holdings, Inc.

Condensed Consolidated Statements of Comprehensive (Loss) Income

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

Three Months Ended

Net (loss) income $ ( 2,807 ) $ 42,962

June 30, Six Months Ended

2023 2022 2023 2022

Net income $ 94,131 $ 43,058 $ 91,324 $ 86,020

Other comprehensive income:

1 unchanged sentence

Unrealized gain on cash flow hedges, net of tax — 637 — 2,893

Total other comprehensive (loss) income ( 119 ) 2,396

Comprehensive (loss) income $ ( 2,926 ) $ 45,358

Total other comprehensive income 426 413 307 2,809

Comprehensive income $ 94,557 $ 43,471 $ 91,631 $ 88,829

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended March 31, 2023

Six Months Ended June 30, 2023

Common Stock Treasury Stock Additional

12 unchanged sentences

Balance, March 31, 2023 69,630 $ 696 1,339 $ ( 75,000 ) $ 717,163 $ ( 195,965 ) $ ( 1,378 ) $ 445,516

Three Months Ended March 31, 2022

Net income — — — — — 94,131 — 94,131

Other comprehensive income — — — — — — 426 426

Stock option exercises and employee stock plan purchases 73 1 — — 1,346 — — 1,347

Vesting of restricted stock awards and units 68 1 — — ( 1 ) — — —

Shares withheld to cover taxes ( 16 ) — — — ( 1,467 ) — — ( 1,467 )

Stock-based compensation — — — — 12,692 — — 12,692

Balance, June 30, 2023 69,755 $ 698 1,339 $ ( 75,000 ) $ 729,733 $ ( 101,834 ) $ ( 952 ) $ 552,645

Six Months Ended June 30, 2022

Common Stock Treasury Stock Additional

12 unchanged sentences

Balance, March 31, 2022 68,570 $ 686 — $ — $ 691,516 $ ( 178,263 ) $ 1,911 $ 515,850

Net income — — — — — 43,058 — 43,058

Other comprehensive income — — — — — — 413 413

Stock option exercises and employee stock plan purchases 61 1 — — 1,422 — — 1,423

Vesting of restricted stock awards and units 108 1 — — ( 1 ) — — —

Shares withheld to cover taxes ( 13 ) ( 1 ) — — ( 823 ) — — ( 824 )

Stock-based compensation — — — — 7,412 — — 7,412

Balance, June 30, 2022 68,726 $ 687 — $ — $ 699,526 $ ( 135,205 ) $ 2,324 $ 567,332

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Operating activities

Net (loss) income $ ( 2,807 ) $ 42,962

Net income $ 91,324 $ 86,020

Adjustments to reconcile net income to net cash flows from operating activities:

25 unchanged sentences

Payments on long-term debt and other borrowings ( 528 ) ( 5,219 )

Contingent value rights settlement ( 3,700 ) —

Proceeds from stock option exercises 3,189 6,780

3 unchanged sentences

Effect of foreign exchange rates on cash, cash equivalents and restricted cash 139 ( 19 )

Net increase in cash, cash equivalents and restricted cash 55,220 6,846

Net (decrease) increase in cash, cash equivalents and restricted cash ( 1,557 ) 72,919

Cash, cash equivalents and restricted cash, beginning of period 417,241 100,651

3 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Reconciliation to amounts within the condensed consolidated balance sheets

7 unchanged sentences

Unless the context otherwise requires, references to the “Company” and “Lantheus” refer to Lantheus Holdings, Inc.

and its direct and indirect wholly-owned subsidiaries, references to “Lantheus Holdings” refer to Lantheus Holdings, Inc.

and not to any of its subsidiaries, references to “LMI” refer to Lantheus Medical Imaging, Inc., the direct subsidiary of Lantheus Holdings, references to “Cerveau,” “Lantheus Real Estate,” “Lantheus Two,” “Lantheus Three” and “Progenics” refer to Cerveau Technologies, Inc., Lantheus MI Real Estate, LLC, Lantheus Two, LLC, Lantheus Three, LLC and Progenics Pharmaceuticals, Inc., respectively, each a wholly-owned subsidiary of LMI, and references to “EXINI” refer to EXINI Diagnostics AB, a wholly-owned subsidiary of Progenics.

and its direct and indirect wholly-owned subsidiaries;

references to “Lantheus Holdings” refer to Lantheus Holdings, Inc.

and not to any of its subsidiaries;

references to “LMI” refer to Lantheus Medical Imaging, Inc., the direct subsidiary of Lantheus Holdings;

references to “Cerveau,” “Lantheus Real Estate,” “Lantheus Two,” “Lantheus Three” and “Progenics” refer to Cerveau Technologies, Inc., Lantheus MI Real Estate, LLC, Lantheus Two, LLC, Lantheus Three, LLC and Progenics Pharmaceuticals, Inc., respectively, each a wholly-owned subsidiary of LMI, and references to “EXINI” refer to EXINI Diagnostics AB, a wholly-owned subsidiary of Progenics.

Solely for convenience, the Company refers to trademarks, service marks and trade names without the TM, SM and ® symbols.

5 unchanged sentences

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 months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or any future period.

The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or any future period.

The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and notes required by U.S.

3 unchanged sentences

On June 19, 2020 (the “Closing Date”), pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of February 20, 2020 (the “Merger Agreement”), by and among Lantheus Holdings, Plato Merger Sub, Inc., a wholly-owned subsidiary of Lantheus Holdings (“Merger Sub”), and Progenics, Lantheus Holdings completed the acquisition of Progenics by means of a merger of Merger Sub with and into Progenics, with Progenics becoming an indirect subsidiary of Lantheus Holdings following the completion of such merger (the “Progenics Acquisition”).

In connection with the Progenics Acquisition, Lantheus Holdings issued contingent value rights (each a “CVR”) tied to the financial performance of PYLARIFY.

Each CVR entitles its holder to receive a pro rata share of aggregate cash payments equal to 40 % of United States (“U.S.”) net sales generated by PYLARIFY in 2022 and 2023 in excess of $ 100.0 million and $ 150.0 million, respectively.

In no event will the Company’s aggregate payments in respect of the CVRs, together with any other non-stock consideration treated as paid in connection with the Progenics Acquisition, exceed 19.9 % of the total consideration the Company pays in the Progenics Acquisition.

Based on the Company’s 2022 PYLARIFY net sales, the Company determined that the aggregate payment obligation under the CVRs is $ 99.7 million, which is the maximum amount payable under the CVRs.

The Company expects to make that payment during the second quarter of 2023 in full satisfaction of the CVRs.

As a result of the acquisition, Lantheus Holdings issued 26,844,877 shares of Lantheus Holdings common stock and 86,630,633 CVRs to former Progenics stockholders and option holders.

In connection with the Progenics Acquisition, Lantheus Holdings issued 26,844,877 shares of Lantheus Holdings common stock and 86,630,633 contingent value rights (each a “CVR”) tied to the financial performance of PYLARIFY to former Progenics stockholders and option holders.

Each CVR entitled its holder to receive a pro rata share of aggregate cash payments equal to 40 % of United States (“U.S.”) net sales generated by PYLARIFY in 2022 and 2023 in excess of $ 100.0 million and $ 150.0 million, respectively.

The Company’s aggregate payments in respect of the CVRs, together with any other non-stock consideration treated as paid in connection with the Progenics Acquisition, was capped at 19.9 % of the total consideration the Company paid in the Progenics Acquisition.

Based on the Company’s 2022 PYLARIFY net sales, the Company determined that the aggregate payment obligation under the CVRs was $ 99.6 million, which was the maximum amount payable.

The Company paid out this amount in May 2023 in full satisfaction of the CVRs.

Summary of Significant Accounting Policies

Recent Accounting Pronouncements

The Company has not adopted any new accounting standards during the three months ended March 31, 2023.

The Company has not adopted any new accounting standards during the six months ended June 30, 2023.

Revenue from Contracts with Customers

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

Major Products/Service Lines (in thousands) 2023 2022 2023 2022

2 unchanged sentences

License and royalty revenues (2)

7,616 5,941 16,144 34,812

Total revenues $ 321,700 $ 223,723 $ 622,484 $ 432,603

12 unchanged sentences

(“Endocyte”) and their affiliates (the “Novartis Agreement”) to settle certain disputes between the parties.

Under the Novartis Agreement, Novartis agreed to make a lump sum payment to the Company, as well as to reimburse the Company for certain fees and expenses in connection with certain German litigation, and the Company agreed to license certain intellectual property to Novartis.

Under the Novartis Agreement, Novartis agreed to make a lump sum payment to the Company, as well as to reimburse the Company for certain fees and expenses in connection with certain litigation, and the Company agreed to license certain intellectual property to Novartis.

In addition, the Company agreed to supply PYLARIFY for clinical purposes at an arms-length value which will be recorded revenue in the future as product is provided.

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in thousands) 2023 2022 2023 2022

21 unchanged sentences

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

March 31, 2023

June 30, 2023

(in thousands) Total Fair

11 unchanged sentences

Total liabilities $ 111,600 $ — $ — $ 111,600

During the three months ended March 31, 2023, there were no transfers into or out of Level 3.

During the three and six months ended June 30, 2023, there were no transfers into or out of Level 3.

As part of the Progenics Acquisition, the Company issued CVRs and recorded the fair value as part of consideration transferred.

Each CVR entitles its holder to receive a pro rata share of aggregate cash payments equal to 40 % of U.S.

Each CVR entitled its holder to receive a pro rata share of aggregate cash payments equal to 40 % of U.S.

net sales generated by PYLARIFY in 2022 and 2023 in excess of $ 100.0 million and $ 150.0 million, respectively, subject to a maximum cap.

1 unchanged sentence

Based on the U.S.

net sales generated by PYLARIFY in 2022, the Company currently expects to pay out the maximum amount payable under the CVRs from available cash in the second quarter of 2023 in full satisfaction of the CVR obligation.

Even though the Company has calculated the total amount payable under the CVRs, for purposes of the table above, the Company considers the contingent consideration liabilities relating to the CVRs a Level 3 instrument.

net sales generated by PYLARIFY in 2022, the Company paid out the maximum amount payable under the CVRs from available cash in May 2023 in full satisfaction of the CVR obligation.

The Company also assumed contingent consideration liabilities related to a previous acquisition completed by Progenics in 2013 (“2013 Acquisition”).

These contingent consideration liabilities include potential payments of up to $ 70.0 million if the Company

attains certain net sales targets primarily for AZEDRA and 1095 and a $ 5.0 million 1095 commercialization milestone.

Additionally, there is a potential payment of up to $ 10.0 million related to a 1404 commercialization milestone.

These contingent consideration liabilities include potential payments of up to $ 70.0 million if the Company attains certain net sales targets primarily for AZEDRA and 1095 (also known as 131 I-MIP-1095) and a $ 5.0 million 1095 commercialization milestone.

Additionally, there is a potential payment of up to $ 10.0 million related to a 1404 commercialization

The Company’s total potential payments related to the 2013 Acquisition are approximately $ 85.0 million.

5 unchanged sentences

The Company can give no assurance that the actual amounts paid, if any, in connection with the contingent consideration liabilities, will be consistent with any recurring fair value estimate of such contingent consideration liabilities.

The following tables summarize quantitative information and assumptions pertaining to the fair value measurement of liabilities using Level 3 inputs at March 31, 2023.

The following tables summarize quantitative information and assumptions pertaining to the fair value measurement of liabilities using Level 3 inputs at June 30, 2023.

Fair Value at Assumptions

(in thousands) March 31, 2023 December 31, 2022 Valuation Technique Unobservable Input March 31, 2023 December 31, 2022

(in thousands) June 30, 2023 December 31, 2022 Valuation Technique Unobservable Input June 30, 2023 December 31, 2022

Contingent consideration liability:

Net sales targets - PYLARIFY (CVRs) $ — $ 99,700 Probability adjusted discounted cash flow model

Period of expected milestone achievement and sales targets 2022 - 2023 2022 - 2023

Probability of success 100 % 100 %

Discount rate N/A N/A

Period of expected milestone achievement and sales targets May 2023 2022 - 2023

Probability of success N/A 100 %

1095 commercialization milestone 1,700 1,700 Probability adjusted discounted cash flow model

8 unchanged sentences

Financial Assets Financial Liabilities

(in thousands) Three Months Ended

March 31, Three Months Ended

(in thousands) Six Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

1 unchanged sentence

Changes in fair value included in net (loss) income — ( 1,600 ) ( 8,975 ) 25,300

Cash payments — — ( 99,625 ) —

Fair value, end of period $ — $ 7,700 $ 3,000 $ 111,500

The change in fair value of the contingent financial liabilities resulted in a reduction of general and administrative expense of $ 1.4 million for the three months ended March 31, 2023 and was primarily due to changes in revenue forecasts, changes in market conditions, an increase in discount rates (excluding the CVRs) and the passage of time.

The Company expects to make all applicable cash payments related to the CVRs in the second quarter of 2023.

As of March 31, 2023, the Company had $ 99.7 million in current liabilities to account for the expected payments related to the CVRs.

The change in fair value of the contingent financial liabilities resulted in a reduction of general and administrative expense of $ 8.9 million for the six months ended June 30, 2023 and was primarily due to changes in revenue forecasts and the passage of time (excluding the CVRs).

The Company made the applicable cash payment related to the CVRs in May 2023.

The Company calculates income taxes at the end of each reporting period based on the estimated effective tax rate for the full year, adjusted for any discrete events which are recorded in the period they occur.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(in thousands) 2023 2022 2023 2022

Income tax (benefit) expense $ ( 8,297 ) $ 14,939

Income tax expense $ 29,557 $ 18,987 $ 21,260 $ 33,926

The Company regularly assesses its ability to realize its deferred tax assets.

9 unchanged sentences

Inventory consisted of the following:

(in thousands) March 31,

(in thousands) June 30,

2023 December 31,

4 unchanged sentences

Inventory costs associated with products that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use of the product and future economic benefit of the asset.

If future commercial use of the product is not probable, then inventory costs associated with such product are expensed during the period the costs are incurred.

The Company has no inventory pending regulatory approval as of March 31, 2023.

If future commercial use of the

product is not probable, then inventory costs associated with such product are expensed during the period the costs are incurred.

The Company has no inventory pending regulatory approval as of June 30, 2023.

Property, Plant and Equipment, Net

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

(in thousands) March 31,

(in thousands) June 30,

2023 December 31,

7 unchanged sentences

Total property, plant and equipment, net $ 129,981 $ 122,166

Depreciation and amortization expense related to property, plant and equipment, net, was $ 3.4 million and $ 3.1 million for the three months ended March 31, 2023 and 2022, respectively.

Depreciation and amortization expense related to property, plant and equipment, net, was $ 3.3 million for the three months ended June 30, 2023 and 2022, respectively, and $ 6.7 million and $ 6.4 million for the six months ended June 30, 2023 and 2022, respectively.

During the three months ended June 30, 2023, as a result of a decline in expected future cash flows related to a certain asset group, the Company determined certain impairment triggers had occurred.

The Company reviewed revised undiscounted cash flows that were estimated to be generated by the asset group as of June 30, 2023.

Based on the undiscounted cash flow analysis, the Company determined that the asset group had net carrying values that exceeded their estimated undiscounted future cash flows.

The Company then estimated the fair value of the asset group based on their discounted cash flows.

The carrying value exceeded the fair value and as a result, the Company recorded a noncash impairment of $ 6.0 million for the six months ended June 30, 2023 in cost of goods sold in the condensed consolidated statements of operations.

Long-Lived Assets Held for Sale

2 unchanged sentences

The assets were classified as held for sale and comprised entirely of property, plant and equipment, net.

The Company determined that the fair value of the net assets being sold exceeded the carrying value as of March 31, 2023.

The Company determined that the fair value of the net assets being sold exceeded the carrying value as of June 30, 2023.

The purchase price for the campus sale is $ 10.0 million in cash.

2 unchanged sentences

Accrued expenses and other liabilities and other long-term liabilities are comprised of the following:

(in thousands) March 31,

(in thousands) June 30,

2023 December 31,

11 unchanged sentences

The Company considers its legal obligation to remediate its facilities upon a potential 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 Somerset, New Jersey sites and currently has no plans to decommission either facility.

As of March 31, 2023, the liability is measured at the present value of the obligation expected to be incurred and is approximately $ 25.1 million.

The Company has production facilities which manufacture and process radioactive materials at its North Billerica, Massachusetts and Somerset, New Jersey sites.

As of June 30, 2023, the liability is measured at the present value of the obligation expected to be incurred and is approximately $ 25.1 million.

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

2 unchanged sentences

Accretion expense 186

Balance at March 31, 2023 $ 22,636

The Company is required to provide the Massachusetts Department of Public Health and New Jersey Department of Environmental Protection financial assurance demonstrating the Company’s ability to fund the decommissioning of its North Billerica, Massachusetts and Somerset, New Jersey production facilities upon closure, though the Company does not intend to close the facilities.

Balance at June 30, 2023 $ 22,729

The Company has provided this financial assurance in the form of a $ 30.3 million surety bond.

1 unchanged sentence

Intangibles, net, consisted of the following:

March 31, 2023

June 30, 2023

(in thousands) Useful Lives

24 unchanged sentences

Total $ 489,761 $ ( 174,476 ) $ 315,285

The Company recorded amortization expense for its intangible assets of $ 11.1 million and $ 8.3 million for the three months ended March 31, 2023 and 2022, respectively.

The Company recorded amortization expense for its intangible assets of $ 12.4 million and $ 8.3 million for the three months ended June 30, 2023 and 2022, respectively and $ 23.5 million and $ 16.6 million for the six months ended June 30, 2023 and 2022, respectively.

In March 2023, the Company stopped all development activities in relation to a future indication associated with AZEDRA, which is classified as an in process research and development (“IPR&D”) intangible asset.

1 unchanged sentence

The Company considered several factors including market share, price and competitive product offerings in evaluating the quantitative impact of the future cash flows.

The Company concluded that the carrying amount exceeded the fair value of the asset group of zero.

concluded that the carrying amount exceeded the fair value of the asset group, which had no value.

Accordingly, in the three months ended March 31, 2023, the Company recorded a non-cash impairment charge associated with the IPR&D asset of $ 15.6 million in research and development expenses and a non-cash impairment charge of $ 116.4 million in cost of goods sold in the condensed consolidated statements of operations.

In February 2023, the Company entered into an agreement with Cerveau to purchase all of the outstanding capital stock of Cerveau for approximately $ 35.3 million.

In May 2023, upon successful completion of a technology transfer, the Company paid $ 10.0 million to the selling stockholders of Cerveau.

This additional contingent payment was capitalized as part of the asset cost and increased the Company’s customer relationship intangible assets.

See Note 19, “Acquisition of Assets” for further discussion of the Cerveau acquisition.

The below table summarizes the estimated aggregate amortization expense expected to be recognized on the above intangible assets:

4 unchanged sentences

Long-Term Debt, Net, and Other Borrowings

As of March 31, 2023, the Company’s maturities of principal obligations under its long-term debt and other borrowings are as follows:

As of June 30, 2023, the Company’s maturities of principal obligations under its long-term debt and other borrowings are as follows:

(in thousands) Amount

11 unchanged sentences

While the 2022 Term Facility allowed for a delayed draw term loan, the loan was not drawn upon.

The Company recorded a loss on extinguishment of debt of $ 0.6 million related to the write-off of unamortized debt issuance costs and debt discounts associated with the 2019 Term Facility.

The Company recorded a loss on extinguishment of debt of $ 0.6 million related to the write-off of unamortized debt issuance costs and debt discounts associated with

the 2019 Term Facility.

In addition, the Company incurred and capitalized $ 2.7 million of new deferred financing costs related to the refinancing.

12 unchanged sentences

The Company is not required to make mandatory prepayments under the 2022 Revolving Facility.

As of March 31, 2023, there were no outstanding borrowings under the 2022 Revolving Facility.

As of June 30, 2023, there were no outstanding borrowings under the 2022 Revolving Facility.

The Company has the right to request an increase to the Revolving Commitment in an aggregate principal amount of up to the sum of $ 335.0 million or consolidated EBITDA for the four consecutive fiscal quarters most recently ended, plus additional amounts in certain circumstances (collectively, the “Incremental Cap”), minus certain incremental term loans made pursuant to specified incremental term loan commitments (“Incremental Term Loans”).

45 unchanged sentences

These events will continue to be monitored to determine whether the interest feature will be bifurcated if it has value.

As of March 31, 2023, the carrying value of the Notes was $ 575.0 million and the fair value of the liability was $ 575.0 million.

The Company recorded interest expense of approximately $ 3.9 million related to the Notes for the three months ended March 31, 2023.

As of June 30, 2023, the carrying value of the Notes was $ 575.0 million and the fair value of the liability was $ 575.0 million.

The Company recorded interest expense of approximately $ 3.9 million and $ 7.8 million related to the Notes for the three and six months ended June 30, 2023, respectively.

There were no conversions of Notes during the six months ended June 30, 2023.

Derivative Instruments

8 unchanged sentences

Accumulated Other Comprehensive (Loss) Income

The components of accumulated other comprehensive (loss) income, net of tax of zero and $ 0.9 million for the three months ended March 31, 2023 and 2022, respectively, consisted of the following:

The components of accumulated other comprehensive (loss) income, net of tax of zero and $ 1.1 million for the six months ended June 30, 2023 and 2022, respectively, consisted of the following:

(in thousands) Foreign currency translation Unrealized loss on cash flow hedges Accumulated other comprehensive income (loss)

2 unchanged sentences

Amounts reclassified to earnings — — —

Balance at March 31, 2023 $ ( 1,378 ) $ — $ ( 1,378 )

Balance at June 30, 2023 $ ( 952 ) $ — $ ( 952 )

Balance at January 1, 2022 $ ( 754 ) $ 269 $ ( 485 )

Other comprehensive income before reclassifications 140 2,086 2,226

Other comprehensive (loss) income before reclassifications ( 84 ) 2,710 2,626

Amounts reclassified to earnings — 183 183

Balance at March 31, 2022 $ ( 614 ) $ 2,525 $ 1,911

Balance at June 30, 2022 $ ( 838 ) $ 3,162 $ 2,324

Stock-Based Compensation

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

(in thousands) 2023 2022 2023 2022

5 unchanged sentences

Operating and finance lease assets and liabilities are as follows:

(in thousands) Classification March 31,

(in thousands) Classification June 30,

2023 December 31,

7 unchanged sentences

Total leased liabilities $ 33,208 $ 28,204

The Company entered into an operating lease agreement in February 2022 for office space in Bedford, Massachusetts, under a lease agreement expiring in June 2031, which commenced and was recorded in December 2022 for $ 11.0 million.

Net (Loss) Income Per Common Share

A summary of net (loss) income per common share is presented below:

On May 4, 2023, the Company entered into a modification to the operating lease for office space in Bedford, Massachusetts, (the “Existing Premises”) that was executed in February 2022.

The lease commenced and was recorded in December 2022 for $ 11.0 million and the initial term was set to expire in June 2031.

The lease modification includes a lease of additional office and laboratory space at the Bedford location (the “Additional Premises”) for a term of 15 years and 4 months and extends the term of the lease for the Existing Premises to be coterminous with the term of the lease for the Additional Premises.

As a result of the extended term for the Existing Premises, the Company recorded an additional right-of-use asset and liability of $ 6.0 million.

The modification also contains a provision to convert the rent schedule of the Existing Premises from gross to triple net in 2024, which may result in an additional adjustment to the right of use asset and liability.

The Additional Premises are currently being renovated and the associated right-of-use asset and liability will be recorded once renovations are substantially complete.

The lease payments for the Additional Premises are currently expected to commence in the second half of 2024 when renovation of the Additional Premises is expected to be completed.

Net Income Per Common Share

A summary of net income per common share is presented below:

Three Months Ended

June 30, Six Months Ended

(in thousands, except per share amounts) 2023 2022 2023 2022

Net (loss) income $ ( 2,807 ) $ 42,962

Net income $ 94,131 $ 43,058 $ 91,324 $ 86,020

Basic weighted-average common shares outstanding 68,371 68,674 68,062 68,343

1 unchanged sentence

Effect of dilutive restricted stock 1,447 1,679 1,504 1,628

Effect of convertible debt instrument 797 — — —

Diluted weighted-average common shares outstanding 71,014 70,796 69,957 70,412

Basic (loss) income per common share $ ( 0.04 ) $ 0.63

Diluted (loss) income per common share $ ( 0.04 ) $ 0.61

Antidilutive securities excluded from diluted net income (loss) per common share 2,953 377

Basic income per common share $ 1.38 $ 0.63 $ 1.34 $ 1.26

Diluted income per common share $ 1.33 $ 0.61 $ 1.31 $ 1.22

Antidilutive securities excluded from diluted net income per common share 349 268 389 196

Impact of the Notes

2 unchanged sentences

While this feature is considered to be a participating right;

basic earnings per share is only impacted if the Company’s earning exceeds the current share price, regardless of whether such dividend is declared.

During the three months ended March 31, 2023 and 2022, no such dividend was declared.

basic earnings per share is only impacted if the Company’s earnings exceeds the current share price, regardless of whether such dividend is declared.

During the six months ended June 30, 2023 and 2022, no such dividend was declared.

In addition, the Company is required to settle the principal amount of the Notes in cash upon conversion, and therefore, the Company uses the if-converted method for calculating any potential dilutive effect of the conversion option on diluted net income per share, if applicable, unless the application of the two-class method is dilutive.

The conversion option will have a dilutive impact on net income per share of Common Stock when the average price per share of the Company's common stock for a given period exceeds the conversion price of the Notes of $ 79.81 per share.

During the three months ended March 31, 2023, the average price per share of the Company's Common Stock was below the conversion price of the Notes.

During the three months ended June 30, 2023, the average price per share of the Company’s Common Stock exceeded the conversion price of the Notes.

During the six months ended June 30, 2023, the average price per share of the Company's Common Stock was below the conversion price of the Notes.

Other income consisted of the following:

Three Months Ended

June 30, Six Months Ended

(in thousands) 2023 2022 2023 2022

Foreign currency losses (gains) $ 246 $ ( 81 )

Foreign currency (gains) losses $ ( 224 ) $ 125 $ 22 $ 44

Tax indemnification income, net ( 232 ) ( 396 ) ( 328 ) ( 792 )

Interest income ( 4,027 ) ( 39 ) ( 7,550 ) ( 47 )

Other 1 — 143 —

Total other income $ ( 4,482 ) $ ( 310 ) $ ( 7,713 ) $ ( 795 )

7 unchanged sentences

If such loss is not probable or cannot be reasonably estimated, a liability is not recorded in its condensed consolidated financial statements.

As of March 31, 2023, the Company did not have any material ongoing litigation to which the Company was a party.

As of June 30, 2023, the Company did not have any material ongoing litigation to which the Company was a party.

Acquisition of Assets

2 unchanged sentences

The Company determined that upon review of the Cerveau acquisition, the transaction did not meet the definition of a business combination and is therefore treated as an asset acquisition.

In February 2023, the Company made an upfront payment of approximately $ 35.3 million to the selling stockholders of Cerveau (the “Selling Stockholders”) and expects to pay an additional $ 10.0 million upon successful completion of a technology transfer.

In February 2023, the Company made an upfront payment of approximately $ 35.3 million to the stockholders of Cerveau (the “Selling Stockholders”) and paid an additional $ 10.0 million in May 2023 upon the successful completion of a technology transfer.

The Company could pay up to an additional $ 51.0 million in milestone payments upon achievement of specified U.S.

10 unchanged sentences

POINT is also eligible to receive up to $ 1.3 billion in sales milestone payments upon the achievement of specified annual sales thresholds of PNT2002.

Under the terms of the license agreement between Lantheus Three and POINT for PNT2003, Lantheus Three paid POINT an upfront cash payment of $ 10.0 million, and could pay up to an additional $ 34.5 million in milestone payments upon the achievement

of specified U.S.

regulatory milestones related to PNT2003.

8 unchanged sentences

The Company’s chief operating decision maker does not manage any part of the Company separately, and the allocation of resources and assessment of performance are based on the Company’s consolidated operating results.

Subsequent Events

On August 2, 2023, the Company entered into an agreement to sell the right to all of its RELISTOR net sales royalties under its license agreement with Bausch, relating to royalties payable in respect of the second quarter of 2023 and subsequent quarters.

The Company received an initial payment of approximately $ 98.0 million in connection with the sale and has the right to receive an additional payment from the buyer of $ 5.0 million if worldwide net sales of RELISTOR in 2025 exceed a specified threshold.

Proceeds from this transaction will be used in the Company’s core businesses and product pipeline.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements