B.Riley downgrades Lantheus stock rating on Curium acquisition
B.Riley has lowered its rating on Lantheus Holdings (NASDAQ:LNTH) stock to Neutral from Buy and reduced its price target to $105.40 from $129.00, citing concerns over product overlaps with Curium. The downgrade comes following Curium's agreement to acquire Lantheus for $102.50 per share, with potential additional payments tied to future milestones.
The merger is set to close in the first half of 2027. B.Riley identified three overlapping products: Detectnet and OCTEVY, Cu64-PSMA-I&T and Pylarify TruVu, and Lu177 dotatate and PNT2003. Curium's acquisition does not require the acceptance of remedies affecting certain Lantheus products. Should the Federal Trade Commission request the divestiture of Cu64-PSMA-I&T, Lantheus could terminate the deal by paying $100 million to Curium.
Despite the downgrade, analysts believe the stock is undervalued, placing it among "Most Undervalued" picks. Lantheus has faced mixed reactions from other analysts, with some downgrading its stock while others maintain a positive outlook. The biotech sector, however, is experiencing substantial growth, with global funding rising 75% year-over-year.
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