Lantheus Medical Imaging reportedly spiked an initial public offering it hoped would raise $125 million, citing "poor market conditions," Renaissance Capital reported.
Lantheus, which makes imaging agents and other diagnostic products, deals primarily in radiopharmaceutical and contrast agents.
Earlier this month, Billerica, Mass.-based Lantheus said it planned to price the offering at $12 to $15 per share, for a range of $111.1 million to $138.9 million. At the midpoint of that range, Lantheus would have commanded a fully diluted market capitalization of $370 million.
Potential investors in Lantheus, which was slated to trade on the NASDAQ exchange under the LNTH symbol, might have been spooked by a Seeking Alpha post advising would-be backers to steer clear.
“While LNTH appears to be approaching profitability and could likely see increasing demand for its products, we are concerned by the instability of supply for resources and competition,” Don Dion wrote July 28 on Seeking Alpha. "[W]e are concerned by the instability of supply for resources critical to the firm’s radiopharmaceutical agents, especially Xenon and Molybdenum, and by the significant competition that LNTH faces from much larger firms.
"LNTH also does not boast the most illustrious underwriters," added Dion, owner & chief investment officer of family investment firm DRD Investments.
In March, Lantheus exited a federal tax evasion row when it agreed to pay $6.2 million to settle allegations that the company and former parent Bristol-Myers Squibb schemed to avoid paying sales taxes.
