Lantheus program validated by Point Biopharma buyout, says Mizuho

Mizuho says Eli Lilly’s (LLY) acquisition of Point Biopharma (PNT) for $1.4B in cash validates Lantheus’ (LNTH) PNT2002. The deal validates the core PNT2002 Phase 3 development asset and de-risks the upcoming Phase 3 SPLASH pivot trial readout that is expected before year end, the analyst tells investors in a research note. The firm says that while the rebound yesterday in shares of Lantheus is warranted, the company’s current valuation “still heavily discounts PNT2002 upside potential.” Mizuho keeps a Buy rating on the shares with a $125 price target. Its math assigns $15 of current value for PNT2002 in Lantheus shares at yesterday’s closing price versus a preliminary $70 peak value, “suggesting much upside is yet to be realized.”