Lantheus Holdings is expanding its presence in the world of radiopharmaceutical diagnostics through a newly-proposed acquisition. On Wednesday, the North Billerica, MA-based company announced it would acquire Progenics Pharmaceuticals, an oncology company developing solutions to find, fight, and follow cancer in an all-stock transaction.
The transaction has been unanimously approved by the Boards of Directors of both companies.
Under the terms of the agreement, Lantheus Holdings will acquire all of the issued and outstanding common shares of Progenics stock at a fixed exchange ratio. Progenics shareholders will receive 0.2502 shares of Lantheus Holdings stock for each share of Progenics stock, representing about a 35% aggregate ownership stake in the combined company.
Mary Anne Heino, President and CEO of Lantheus, addressed the acquisition, during a conference call.
“Together we will have a broad portfolio of precision diagnostics and therapeutics products focused on driving strategic pipeline investments to capitalize on market opportunities and maximize returns,” Heino during the call.
Progenics’ oncology-focused portfolio currently includes three FDA approved products as well as a rich product pipeline. Progenics has developed Azedra, a product used to treat adult and pediatric patients 12 years and older for the ultra-orphan indications of pheochromocytoma and paraganglioma. Progenics’ other approved products are oral and subcutaneous formulations of Relistor, which are licensed to Bausch Health Companies.
“This combination unlocks additional value for stakeholders and stockholders alike through Lantheus’ enhanced resources and R&D capabilities, proven commercial expertise and complementary portfolio of products. The transaction also creates value for Progenics stockholders through a significant premium and the opportunity to participate in the future growth of Lantheus,” Mark Baker CEO of Progenics, said in a release. “Lantheus shares our confidence in the potential of our promising pipeline, and we believe that Lantheus will provide additional commercialization expertise and resources to further advance Azedra’s launch and deliver substantial revenue growth. This compelling opportunity would not have been possible without the hard work and dedication of our talented employees.”