Life Healthcare Partners with Lantheus, Secures $35 Million for RM2 Sub-License

  • Partnership Announcement: Life Healthcare sub-licenses RM2 to Lantheus, securing $35 million upfront.
  • Financial Implications: Reduces immediate funding needs, potential dividend distribution to shareholders.
  • Strategic Benefits: Validates LMI's capabilities, accelerates RM2 development, and opens new revenue streams.

Life Healthcare Group Holdings Limited, based in South Africa, has announced a new partnership. The healthcare company will sub-license one of its early-stage radiotherapeutic and radiodiagnostic products, “RM2,” to Lantheus Holdings, Inc.

Agreement Details

Life Molecular Imaging Limited (LMI), a subsidiary of Life Healthcare, is managing the agreement. Lantheus will make an upfront payment of $35 million to LMI for the sub-licensing rights to RM2. Additional payments will be made upon reaching development and regulatory milestones. The agreement also includes future royalties once the product is sold commercially.

Payment TypeAmount
Upfront Payment$35 million
Development MilestonesNot specified
Regulatory MilestonesNot specified
Future RoyaltiesBased on sales

Strategic Move

This move aligns with Life Healthcare’s strategy to monetize its product development portfolio. By partnering with Lantheus, Life Healthcare avoids the expensive and uncertain development process to bring RM2 to the market.

Lantheus’ Role

Lantheus Holdings, listed on NASDAQ, is a leading radiopharmaceutical company. They specialize in products that help clinicians diagnose and treat diseases. Lantheus sees value and commercial opportunity in continuing RM2’s development.

Benefits for Life Healthcare

This partnership unlocks value within Life Healthcare’s subsidiary, LMI. It also showcases LMI’s specialized talent. The agreement reduces the funding needed for LMI’s immediate term, following the R1 billion retained from the disposal of interests in Alliance Medical Group.

Potential Dividend Distribution

Life Healthcare plans to consider distributing the balance, post costs, to shareholders as part of the 2024 full-year dividend. This transaction is seen as beneficial for shareholders.

LMI’s Capabilities

LMI, based in the United Kingdom, has several products in development. Its product Neuraceq® is approved in many countries and is used to detect amyloid plaque in the brain through PET-CT scans. LMI also provides clinical research services for pharmaceutical companies.

Conclusion

Life Healthcare’s agreement with Lantheus Holdings marks a strategic move in its business strategy. This partnership not only reduces development costs but also positions the company to benefit from future revenue streams. The focus on leveraging LMI’s capabilities highlights Life Healthcare’s commitment to innovation and growth.


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