Business  Valuation  Report  
By:  Samantha  Som  
 
 
 

 
Prepared  for:  

 
LANTHEUS Medical  Imaging,  INC.  
331  Treble  Cove  Rd.  
N.  Billerica,  MA  01862  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
April  13,  2015  
 
Executive  Summary  
 
Lantheus  was  founded  in  1956  and  has  over  500  
Business  
employees.  The  company  develops,    
The  portfolio  includes  10  commercial  products  diversified  in  
manufactures,  and  distributes  diagnostic  medical   their  range  of  imaging  modalities.  Specifically,  
imaging  agents  and  products  that  assist  clinicians   radiopharmaceuticals,  or  nuclear  imaging  compounds,  and  
in  the  diagnosis  of  a  cardiovascular  disease.  The   contrast  agents.  Other  products  are  used  for  recurring  
company  was  originally  a  nuclear  corporation  in   revenue:    inhaled  gas  and  several  imaging  agents  
New  England  and  especially  did  well  in  its’    
diagnostic  imaging  field.  In  1981,  the  company   Use  of  Funds  
was  purchased  by  E.I.  du  Pont  de  Nemours  and   -­‐Lantheus  is  all  about  their  direct  sales  force  and  invests  
Company  until  2001,  when  the  medical  imaging   heavily  into  their  customer  service  team.  
business  was  acquired  by  the  Bristol-­‐Myers    -­‐For  the  years  ended  December  31,  2013,  2012  and  2011,  
they  invested  $30.5  million,  $40.6  million  and  $40.9  million,  
Squibb  Company  (BMS).  In  2008,  BMS  was  
respectively,  in  research  and  development.  
acquired  by  Avista  Capital  Partners  and  then  re-­‐
-­‐Investment  in  market  penetration  for  product  called  
established  the  independent  company,  naming  it   “Definity”  
Lantheus.    
  Industry  
Funding/Resources  Sought   The  products  rely  on  raw  materials  and  supplies  and  because  
  it’s  so  specialized,  the  raw  materials  become  limited.  Lantheus  
As  of  3/2/2015,  Lantheus  stated  that  they  are   has  established  relationships  with  several  key  suppliers.  
seeking  for  strategic  partners  to  further  develop   However,  in  response  to  these  supply  challenges,  Lantheus  
and  commercialize  on  their  important  agents  in   had  to  recently  undergo  technology  transfers  from  a  third  
development.  Otherwise,  it  is  not  possible  for   party  contract  manufacturer.  
them.  The  current  cash  they  have  is  only  enough    
to  cover  operating  expenses,  capital   Current  Status  
expenditures  and  liquidity  requirements  for  at   Lantheus  is  in  public  debt.  If  DEFINITY  sales  do  not  grow,  
Lantheus  will  not  be  able  to  grow  the  revenue  and  cash  flow  
least  the  next  twelve  months.  
of  the  business  or  continue  to  fund  their  growth  initiatives  at  
 
planned  levels,  which  could  have  a  negative  effect  on  
Marketing  Opportunity   prospects.  
   
According  to  the  company,  the  market  for   The  company’s  dependence  upon  third  parties  for  the  
diagnostic  medical  imaging  agents  is  highly   manufacture  and  supply  could  prevent  them  from  delivering  
competitive  and  is  continually  evolving.  This  is   their  products  to  customers,  which  could  result  in  order  
good  on  one  hand  but  also  poses  a  threat.  The   cancellations  and  decreased  revenues.    
other  global  companies  in  the  field  are  more    
diversified,  such  as  GE  Healthcare  and  Bayer.  At   Contact:  
Samantha  Som  (781)535-­‐1434  ,  samsom@go.byuh.edu  
the  same  time  however,  Lantheus  is  doing  
clinical  trials  in  China  so  believe  that  international  markets  have  already  been  representing  
growth  opportunity  for  Lantheus.  The  products  are  used  by  a  variety  of  specialist  working  in  the  
clinical  setting,  namely-­‐  technologists,  internal  medicine  physicians,  cardiologists,  etc.  In  
addition  to  hospitals  and  clinics,  a  majority  of  the  their  products  in  the  U.S.  are  sold  to  
radiopharmacies  that  are  controlled  by  or  associated  with  purchasing  groups  such  as  Cardinal,  
UPPI,  GE  Healthcare,  and  Triad  Isotopes  Inc.,  or  Triad.  
In  October  2013,  they  entered  supply  and  distribution  agreements  in  certain  European  countries  
while  also  utilizing  third  party  relationships  in  the  market  of  Asia  Pacific  and  Latin  America.  
 
Proprietary  Technology  
In  the  U.S.  and  some  foreign  jurisdictions,  they  own  various  trademarks,  service  marks  and  trade  
names,  including  DEFINITY,  TechneLite,  Cardiolite,  Neurolite,  Ablavar,  Vialmix,  Quadramet  (U.S.  
only)  and  Lantheus  Medical  Imaging.  
As  of  February  28,  2014,  their  patent  portfolio  looks  like  this:  
• 42  issued  U.S.  patents  
• 256  issued  foreign  patents  
• 27  pending  patent  applications  in  the  United  States    
• 144  pending  foreign  applications  
 
Revenue  Model  
Lantheus  posts  full  year  EBITDA  of  $______  and  are  forecasting  $______  in  revenue  by  the  end  
of  the  year  2015.