Lantheus Holdings Inc., a company committed to improving patient outcomes through diagnostics, radiotherapeutics and artificial intelligence solutions, and POINT Biopharma Global Inc., a company accelerating discovery, development and global access to life-changing radiopharmaceuticals, have signed a set of strategic collaboration agreements in which Lantheus will license exclusive worldwide rights to POINT’s PNT2002 and PNT2003 product candidates.
 
Upon consummation of the agreements, in exchange for the exclusive worldwide rights, Lantheus will pay a total of $260 million in upfront payments between the two agreements to POINT, with the potential for additional milestone payments of approximately $1.8 billion between the two products based on U.S. Food and Drug Administration (FDA) approval and net sales and commercial milestones. Additionally, Lantheus will pay POINT royalties on net sales, beyond certain financial thresholds and subject to conditions, of 20% for PNT2002 and 15% for PNT2003.
 
The agreements expand Lantheus’ radiopharmaceutical portfolio with two late-stage therapeutic candidates and, with PNT2002, broadens Lantheus’ prostate cancer franchise. For POINT, the agreement pairs PNT2002 and PNT2003 with an ideal commercialization partner, and offsets launch and marketing risks, while still maintaining the value and independence of POINT’s next generation radioligand platform. Lantheus expects the agreements to drive long-term, sustainable revenue and free cash flow growth and be accretive to its Adjusted Earnings Per Share (Adjusted EPS) shortly following commercialization of PNT2002.
 
Under the agreements, POINT will fund and complete its Phase 3 SPLASH trial for PNT2002, following which Lantheus will file the New Drug Application (NDA) in collaboration with POINT. For PNT2003, POINT will facilitate completion of the ongoing University Health Network (UHN)-sponsored ongoing OZM-067 study in Canada, while Lantheus will prepare and submit the regulatory filings in the U.S. Upon consummation of the agreements, the companies will form joint steering committees to oversee the clinical studies, regulatory filings, manufacturing and commercial readiness for both PNT2002 and PNT2003. POINT will develop commercial production capacity and manufacture clinical and commercial supply for both PNT2002 and PNT2003. Lantheus has the rights to commercialize both assets post regulatory approval.
 
“These exclusive license agreements and collaborations leverage the complementary strengths of both companies in radiopharmaceutical oncology and enhance the potential impact that these compelling therapeutic candidates could provide to patients,” said Mary Anne Heino, president and CEO of Lantheus. “Lantheus has extensive radioisotope supply chain and distribution experience, recognized leadership in radiopharmaceuticals and prostate cancer, a well-established commercial infrastructure, and longstanding relationships across relevant healthcare stakeholders and hospitals. Our company is uniquely positioned to unlock the significant commercial potential of these two product candidates, which we believe will enhance the long-term revenue and earnings growth potential of Lantheus. We look forward to working with the talented POINT team as we advance our purpose to Find, Fight and Follow disease to deliver better patient outcomes.”
 
“Lantheus is a demonstrated commercial leader in the field of radiopharmaceuticals. Their experience with these complex products and established footprint in commercializing PYLARIFY and AZEDRA makes them an ideal collaborator for these programs,” said Joe McCann, Ph.D., CEO of POINT Biopharma. “This collaboration also immediately unlocks value for POINT, reduces the need for dilutive fundraising, and enables us to focus on our pipeline of next generation radioligands, which could be transformative for the field of precision oncology. We are excited to continue developing and scaling our manufacturing capabilities to support the PNT2002 and PNT2003 launches and continue development of PNT2004, our pan-cancer FAP-α program, which is currently in Phase 1, and PNT2001, our actinium-225 next-generation PSMA program which is expected to begin Phase 1 in 2023. We founded POINT to accelerate the discovery, development, and global access to life-changing radiopharmaceuticals, and with this collaboration, POINT is now better positioned than ever to execute on our mission.”

Additional Terms of the Agreements

Lantheus will fund the all-cash license of exclusive worldwide rights, excluding certain territories, for PNT2002 and PNT2003 with cash on Lantheus’ balance sheet and committed financing. The milestone-based structure under the agreements allows Lantheus to maintain its financial profile and creates the opportunity to generate strong free cash flow.
 
In exchange for Lantheus receiving exclusive worldwide rights, excluding certain territories, for PNT2002, POINT will receive a $250 million upfront payment, an additional payment up to $250 million upon U.S. regulatory approval, and, once certain return on investment financial thresholds have been achieved and other conditions met, royalties of 20% on net sales, as well as the potential for up to an additional $1.3 billion in various net sales milestone payments. For PNT2003, POINT will receive a $10 million upfront payment, up to an additional $30 million upon U.S. regulatory approval, royalties of 15% on net sales, as well as the potential for up to an additional $275 million in various net sales milestone payments.
 
The PNT2002 and PNT2003 license agreements are subject to Hart-Scott-Rodino antitrust clearance and customary closing conditions, which are expected to be satisfied in the first half of 2023.
 
SVB Securities served as financial advisor to Lantheus.