Lantheus Shares Climb on Favorable CMS Ultrasound Ruling
A federal decision to double payment for contrast-enhanced ultrasound scans is expected to boost adoption, benefiting the company's market-leading imaging agent.
Shares of Lantheus Holdings Inc. (NASDAQ: LNTH) rose Tuesday after U.S. regulators finalized a decision to double the reimbursement rate for certain specialized ultrasound procedures, a move expected to drive significant demand for the company’s key diagnostic products.
In morning trading, Lantheus shares gained 2.2% to $57.72, lifting the company's market capitalization to approximately $3.84 billion. The surge followed the announcement by the Centers for Medicare & Medicaid Services (CMS) of its final 2026 payment rule, which creates a stronger financial incentive for hospitals and clinics to use contrast-enhanced ultrasound (CEUS).
Under the new rule, which takes effect January 1, 2026, the payment for non-cardiac CEUS procedures will be reassigned to a higher-paying category. This change effectively doubles the reimbursement, aligning it with more established imaging techniques like contrast-enhanced CT and MRI scans. For years, healthcare providers argued that the lower reimbursement for CEUS was a significant barrier to its wider use, despite its clinical benefits as a safe and cost-effective diagnostic tool.
Lantheus is poised to be a primary beneficiary of this policy shift. The company manufactures DEFINITY, the dominant ultrasound enhancing agent in the United States, holding an estimated 80% market share for its use in cardiac imaging (echocardiography). The CMS rule specifically targets the under-penetrated non-cardiac segment, opening a substantial growth avenue for Lantheus's flagship product.
"The decision by CMS to appropriately reimburse for these procedures is a game-changer for patients and for the imaging community," said Dr. Richard G. Barr, a radiologist and past president of the International Contrast Ultrasound Society (ICUS), in a statement released on Business Wire. The ICUS has long advocated for the payment adjustment, arguing that it would improve patient access to a versatile imaging modality that avoids the radiation exposure of CT scans and the higher costs associated with MRIs.
While the market for ultrasound contrast agents includes competitors like GE Healthcare's Optison and Bracco's Lumason, Lantheus's established market leadership and extensive distribution network position it to capture the lion's share of the anticipated increase in procedure volume.
This regulatory tailwind is the latest positive development for the Bedford, Massachusetts-based company, which has successfully navigated the complex landscape of federal reimbursement for its innovative products. In late 2024, Lantheus received favorable news from CMS regarding payment for its advanced PET imaging agents, including PYLARIFY, which is used to detect prostate cancer. This pattern of positive regulatory outcomes underscores the company's strategic focus on diagnostics that offer clear value to the healthcare system.
Wall Street has a generally positive outlook on the stock, with an average analyst price target of $80.93, suggesting significant upside from its current levels. The CMS ruling provides a new, tangible catalyst that supports this bullish thesis by de-risking a key part of the company's long-term growth strategy.
As the healthcare system continues to seek more efficient and less invasive diagnostic solutions, the enhanced payment for CEUS is expected to accelerate its adoption for applications in liver, kidney, and abdominal imaging. For Lantheus, a long-term investment in its ultrasound franchise appears set to pay significant dividends.