Lantheus Medical Imaging parent Lantheus Holdings has signed a definitive agreement to acquire oncology firm Progenics Pharmaceuticals in an all-stock transaction.
The deal will broaden Lantheus' reach in radioisotopes for precision diagnostics, as well as in radiopharmaceuticals for oncology treatment, said Lantheus CEO Mary Anne Heino in a statement. It also leverages the firm's manufacturing, supply chain, and commercial activities with Progenics' commercial products, clinical pipeline, and development capabilities, according to the company.
Progenics has three products that have received U.S. Food and Drug Administration (FDA) approval, including Azedra for treating adult and pediatric patients 12 years and older for pheochromocytoma and paraganglioma. The firm has also developed oral and subcutaneous formulations of Relistor that have been licensed to Bausch Health. In addition, Progenics is developing other targeted medicine and artificial intelligence (AI) technology, Lantheus said.
Progenics shareholders will receive 0.2502 shares of Lantheus Holdings stock (valued at approximately $19 per share on October 2) for each share of Progenics stock -- representing an approximately 35% ownership stake in the combined company. The deal is expected to close in the first quarter of 2020, subject to stockholder and regulatory approvals and customary closing conditions. The new entity will operate from Lantheus' headquarters in North Billerica, MA, and will be led by Heino.
