Lantheus Holdings (LNTH): Assessing Valuation Following FDA Acceptance of New Alzheimer’s Imaging Agent MK-6240

Lantheus Holdings (LNTH) recently shared that the FDA has accepted its New Drug Application for MK-6240, an investigational imaging agent designed to help detect tau pathology in Alzheimer’s disease.

See our latest analysis for Lantheus Holdings.

Following the encouraging FDA update for MK-6240, Lantheus Holdings’ share price is now sitting at $57.33 after some recent volatility. While the 1-month share price return of 13.3% shows strong short-term momentum, the 1-year total shareholder return of -47.9% highlights just how much the stock has struggled in the longer run. This comes despite ongoing growth initiatives and some recent legal headwinds. After last year’s selloff, investors seem to be weighing both promising clinical news and ongoing market risks as they reassess the company’s outlook.

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With shares still trading at a notable discount to analyst targets and future growth prospects from its Alzheimer’s program, is Lantheus Holdings undervalued? Or has the market already priced in the next wave of innovation?

Most Popular Narrative: 31.1% Undervalued

Lantheus Holdings’ most widely followed narrative highlights a significant gap between the current share price of $57.33 and fair value estimates. This discrepancy adds fuel to the ongoing debate about future returns. The valuation brings together bullish clinical updates and lingering market concerns, inviting a closer look at the factors driving these projections.

The expansion of Lantheus's Alzheimer's disease imaging franchise, including the recent FDA label expansion for Neuraceq and late-stage tau-targeted radiodiagnostic MK-6240, positions the company to capture accelerating demand. This demand is driven by broader adoption of amyloid-targeted therapies and increased focus on early diagnosis. These developments are expected to drive strong revenue growth as the U.S. PET imaging market for Alzheimer's is projected to exceed $1.5 billion by 2030.

Read the complete narrative.

Wondering what unexpected financial drivers underlie this bold valuation? The narrative teases out pivotal levers behind revenue and margin expansion that just might surprise you. Want to know which assumptions tip the scale? Dive in to uncover what is hiding behind the headline numbers.

Result: Fair Value of $83.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing pricing pressure for Pylarify and rising competition could challenge the case for long-term revenue growth and sustained share price recovery.

Find out about the key risks to this Lantheus Holdings narrative.

Build Your Own Lantheus Holdings Narrative

If you see the story differently or want to dig deeper into Lantheus Holdings’ numbers, you can build your own analysis in just a few minutes. Do it your way

A great starting point for your Lantheus Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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