https://investorhub.radiopharmtheranostics.com/announcements/7649720
Lantheus was bought out today. $102.5 plus $12 cvr based on a few milestones. Closing date mid 2027.
I might hold because free money later on. I keep little cash in my port, and this is sort of cash with a few free scratch off lotto tickets.
Processing RADX though. LNTH has like a 15% stake…
Pharma options: License RAD204. Fund an expansion cohort. Negotiate an option to acquire it after Phase 2. … Buy a minority stake… Wait for RADX to need money… But buying the entire company is the most expensive and least reversible choice.
The big fear is RADX doesn’t have cash to put this through the wringer of clinical trials. So this might become… RAD204 works, but RADX finances it through repeated dilution, loses negotiating leverage, and eventually sells the asset cheaply enough that the buyer captures most of its lifetime value (not us lonely degen investors). Precedence? Absolutely. Clovis and molecular insights had the same problems.
Also, rad204 is licensed for single digits royalties already.
I think my hopes that this goes to even a 20Om USD market cap are probably less likely to happen. I see 3 pathways- rad204 doesn’t work - stock crushed. Diluted to oblivion while trying to figure it out (most likely). It works + bought out at a huge multiple -200m would be 4x and I doubt pharma goes that high of a multiple. Especially when next rounds of data (with more than 10 patients) are years away. A cheap add on at $200m? Absolutely… But setting a precedence for buyout multiples is probably what I’d be most leery of them doing.
It seems way more likely to die on the vine unless they can quickly start printing cash from their other assets.
What about rad101 and rad202?
Surprised to hear whole story arc tied to rad204, from your perspective.
Thx!