Lantheus Holdings (LNTH) Valuation in Focus After Class Action Lawsuits Over Pylarify Disclosures

Several class action lawsuits have been launched against Lantheus Holdings (LNTH) after claims that the company misrepresented pricing and growth expectations for its key radiopharmaceutical product, Pylarify. The legal actions have sparked renewed investor attention.

See our latest analysis for Lantheus Holdings.

After an initial wave of optimism earlier this year, Lantheus Holdings has faced a sharp downturn as legal challenges weigh heavily on sentiment. The share price has rebounded modestly from recent lows with a 9% gain over the past month, but it remains under pressure following disappointing Pylarify updates and two guidance cuts. Momentum has faded, as reflected in the stock’s year-to-date share price return of -37% and a full-year total shareholder return of -52%. Still, the company’s track record of being up more than 300% over five years reminds investors of its long-term growth potential, even amid a turbulent stretch.

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That leaves investors weighing the numbers and recent turmoil, as they debate whether Lantheus shares are trading at a bargain after steep losses or if the market is already accounting for any possible growth ahead.

Most Popular Narrative: 34% Undervalued

With Lantheus Holdings’ fair value estimated at $84.29 by the most widely followed narrative, there is a significant gap to the recent $55.60 market price. This offers potential upside and sets the stage for deeper investigation into the underlying assumptions. Understanding where analysts see untapped value is key, as the consensus sees opportunity while the market lags.

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 driven by broader adoption of amyloid-targeted therapies and increased focus on early diagnosis. This is likely to drive strong revenue growth as the U.S. PET imaging market for Alzheimer's is expected to exceed $1.5 billion by 2030.

Read the complete narrative.

Curious what bold projections could justify such a big valuation gap? This narrative is built on major growth assumptions and an earnings forecast that is anything but ordinary. You will want to uncover the surprising optimism fueling that target.

Result: Fair Value of $84.29 (UNDERVALUED)

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

However, steep competition and lower Pylarify market share could diminish growth expectations. These factors serve as key risks to the bullish narrative.

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

Build Your Own Lantheus Holdings Narrative

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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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