Radiopharm Theranostics secures $70m in funding with major stake from Lantheus Holdings

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By Imelda Cotton - 
Radiopharm Theranostics ASX RAD Lantheus placement

US-based radiopharmaceuticals industry leader Lantheus Holdings has agreed to make a hefty investment into a $70 million equity raising by Australian biotech Radiopharm Theranostics (ASX: RAD).

The funds raised through share placement will be used by Radiopharm for manufacturing and clinical trials of its oncology drugs over the next two years.

Long-term commitment

Lantheus has committed $7.5m, which will see it issued with approximately 149.6 million Radiopharm shares priced at $0.05 each.

It will also receive 149.9 million unlisted options with an exercise price of $0.05 and a six-month expiry, plus one option for every four Radiopharm shares exercisable at $0.06 each and expiring in August 2026.

On exercising the options, Lantheus will be eligible for up to 37.48 million additional options on the basis of one new option for every four new shares held, with an exercise price of $0.06 and a two-year expiry.

Lantheus has an option to invest a further $7.5m within six months on the same terms.

Strong endorsement

Radiopharm chief executive officer Riccardo Canevari welcomed Lantheus’ participation in the raising.

“To have attracted investment from one of the radiopharmaceutical industry’s leading companies is a solid endorsement of our potential,” he said.

Radiopharm will hold an extraordinary general meeting to seek shareholder approval for the Lantheus investment.

Broader placement

Mr Canevari stated that Radiopharm had received firm commitments from institutional and sophisticated investors to raise the $62.5m remaining after Lantheus’ investment.

The money will be raised via a two-tranche placement of approximately 1.56 million ordinary shares priced at $0.04 each.

Tranche 1 will take place in July and will see the issue of 597 million shares for approximately $23.9m.

Tranche 2 will issue 966 million shares to raise the remaining $38.6m on a date yet to be determined.

Investors will receive one attaching option for every two new shares, with an exercise price of $0.06 and an expiry date of 24 months from the settlement date of the tranche 2 shares.

Radiopharm executive chair Paul Hopper will subscribe for $3m worth of new shares in the placement, while other directors have also announced their intention to participate.

Separate agreement

Radiopharm announced a separate transfer and development agreement with Lantheus earlier this month, under which it will assign and sub-licence two of its pre-clinical assets for an upfront $3m payment.

Lantheus chief executive office Brian Markison said the agreement would help further expand the company’s innovative pipeline.

“Radiopharmaceutical theranostics are changing the way cancer is diagnosed and treated, and we are inspired to further advance this field with these two pre-clinical oncology assets,” he said.