Polaris Capital Letter Cites FDA Approval and Takeover Bid for LNTH Gains

Polaris Capital Management identified Lantheus Holdings, Inc. (NASDAQ: LNTH) as a key contributor to its fund's strong second-quarter 2026 performance, citing a combination of robust earnings, a new FDA approval, and acquisition interest. The investment management firm released these details in its second-quarter investor letter for the Global Equity Strategy, noting that the fund's health care holdings drove significant outperformance during the period.

The Polaris Global Equity Composite returned 13.26% for the quarter, net of fees, slightly lagging the MSCI World Index's 13.90% return. However, the fund significantly outperformed its benchmark for the year-to-date period through June 30, 2026, gaining 19.95% compared to the benchmark's 9.94%. Polaris attributed this year-to-date divergence to strong results from information technology holdings, specifically AI-related companies and memory semiconductor suppliers.

Within the health care sector, the letter stated that five holdings posted double-digit gains. Lantheus Holdings advanced on multiple fronts according to the fund's analysis. The firm highlighted strong quarterly earnings as a primary driver. Additionally, the letter pointed to the FDA approval of PYLARIFY TruVu, which Polaris described as cementing Lantheus's leadership in radiopharmaceutical diagnostics. The third factor cited was intensified M&A interest, specifically referencing a potential $7 billion takeover bid from PE-backed Curium Pharma.

Lantheus Holdings develops, manufactures, and commercializes diagnostic and therapeutic products used by clinicians for the diagnosis and treatment of heart, cancer, and other diseases. As of September 22, 2026, the company's shares closed at $100.28 per share. Over the preceding month, LNTH shares declined by 0.58%, while posting a 92.62% gain over the past 52 weeks. The company currently holds a market capitalization of $6.55 billion, with its stock trading within a 52-week range of $49.67 to $111.86.

Database records indicate that 40 hedge fund portfolios held Lantheus Holdings at the end of the second quarter, up from 31 portfolios in the previous quarter. Despite acknowledging the investment potential of LNTH, Polaris Capital Management stated in its letter that it believes certain AI stocks offer greater upside potential and carry less downside risk. The fund emphasized its preference for AI-related equities that may benefit from tariff policies and onshoring trends.