Lantheus price target raised to $127 from $106 at Leerink

Leerink raised the firm’s price target on Lantheus to $127 from $106 and keeps an Outperform rating on the shares. The firm updated its Lantheus model to reflect a more positive view on Pylarify’s growth trajectory following Centers for Medicare & Medicaid Services’ new proposed rule for 2025. The proposal should largely remove a key reimbursement overhang for Pylarify, support more favorable reimbursement for Pylarify beyond its transitional pass-through expiry at the end of 2024, enable Lantheus to “lean into” its first-mover competitive advantages and drive deeper adoption of Pylarify in the PSMA PET imaging space, the analyst tells investors in a research note. Leerink believes the CMS update bodes well for Lantheus, saying it could drive a more persistent growth profile for Pylarify in tandem with possibly alleviating “switching dynamic” concerns investors have voiced around hospital use of Pylarify versus Posluma in 2025 onwards.