Good morning, ladies and gentlemen. Welcome to the Lantheus Holdings First Quarter 2020 Earnings Conference Call. This is your operator for today's conference call. [Operator Instructions] This call is being recorded for replay purposes. A replay of the audio webcast will be available in the Investors section of the company's website approximately 2 hours after the completion of the call and will be archived for 30 days. I will now turn the call over to your host for today, Mark Kinarney, Director of Investor Relations. Mark?

Thank you, and good morning. Welcome to Lantheus Holdings First Quarter 2020 Earnings Conference Call. Joining me today is our President and CEO, Mary Anne Heino; and our CFO, Bob Marshall. This morning, we issued a press release, which was furnished to the Securities and Exchange Commission under Form 8-K, reporting our first quarter 2020 results. You can find the release in the Investors section of our website at lantheus.com. Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by forward-looking statements due to a variety of risks and uncertainties. In particular, there is significant uncertainty about the duration and contemplated impact of the COVID-19 pandemic. This means that results could change at any time, and the contemplated impact of COVID-19 on the company's business results and outlook is the best estimate based on the information available as of today's date. Please note that we assume no obligation to update these forward-looking statements, except as required by applicable law, even if actual results or future expectations change materially. Please refer to our SEC filings for a detailed discussion of these risks and uncertainties. Also, discussions during this call will include certain non-GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is also included in the Investors section of our website. With that, I'll turn over the call to Mary Anne. Mary Anne?

Thank you, Mark, and good morning, everyone. First and foremost, Lantheus is proud to serve the life sciences sector, and we want to thank health care workers everywhere for their extraordinary commitment in these unprecedented times. I hope to find each of you and your families safe and well as you listen to this call. Lantheus' products have been included in the list of products deemed essential. And we continue to manufacture and ship products from our campus daily, although on a reduced basis, as Bob and I will discuss during the call. The safety of our employees is a priority, as is that of the patients who receive our products, and we have adopted heightened measures to ensure the ongoing production of our microbubble and nuclear medicine products. I am proud of the dedication and support of the entire Lantheus team, whether they are working at home or in our manufacturing facilities during these very challenging times. On April 9, we announced that while business results through the first 2 months of the first quarter were ahead of company expectations, as COVID-19 reached global pandemic levels in mid-March, procedural volumes for our products declined. We also noted that we anticipated the second quarter impact of the COVID-19 pandemic on our business would be more significant than that seen in the first quarter. Accordingly, we had already taken steps at that time to reduce ongoing cost until demand levels for our products impacted by the reduction of elective procedures within health care systems recover. In addition to significant reduction of discretionary spending, we have implemented a higher increase through the balance of 2020. Further, effective April 13, 2020, and for the balance of the second quarter, we reduced our work week from 5 days to 4 days in order to…

Thank you, Mary Anne, and good morning, everyone. I will provide highlights of the first quarter financials, focusing on adjusted results, unless otherwise noted. Revenue for the first quarter was $90.7 million, an increase of 4.8% over the prior year quarter. While revenue came in at the top end of guidance for the full quarter, we saw a meaningful drop off beginning - during the last 2 weeks March. Sales of DEFINITY in the first quarter were $56.8 million or 11.1% higher as compared to the prior year quarter. TechneLite revenue was $23.1 million, down 4.3% from the prior year quarter. Other nuclear increased 2.5% to $15.5 million due to the timing of certain Neurolite sales, offset in part by Xenon volume. Rebates and allowances totaled $4.7 million. Gross profit margin for the first quarter was 51.1%, a decrease of 85 basis points from the first quarter 2019 on a similar basis. The decrease is due mainly to planned under-absorbed overhead cost associated with our new on-campus manufacturing facility as was noted earlier this year. Operating expenses were 221 basis points favorable to the prior year at 27.4% of net revenue, driven primarily by lower relative expenditures in each spending category. Favorability was driven by both the phasing of certain planned expenses as well as conscious decisions to slow discretionary spend during the latter half of the quarter as the COVID-19 pandemic began to take shape. Operating profit for the quarter was $21.6 million or an increase of 11.2% over the same period prior year. Total adjustments in the quarter totaled $14.5 million before taxes. Of this amount, $3.1 million is associated with noncash stock and incentive plans. Also in the quarter, we recorded $7.3 million of expense relating to an asset impairment charge associated with certain of our other…

Thank you, Bob. In closing, I'd like to give a special thank you to Lantheus employees. Both those essential workers coming to our Billerica headquarters daily to manufacture our products as well as those diligently working from home as we do our part to serve patients and fight this virus. You continue to embody the very best of our company's values, and I thank you for your commitment. Before I open the call to questions, I'd again like to express my sincere thanks to first responders and those on the front lines everywhere and wishes for the safekeeping of everyone until our next call. With that, Bob and I are now ready to take your questions. Operator, please go ahead.

[Operator Instructions] And our first question comes from the line of Larry Solow with CJS Securities. Please go ahead.

Just obviously, unprecedented times. But just on DEFINITY, a lot of this stuff is sort of not really elective, I guess, but some - I guess in the short run, inability to get to hospitals and closures and whatnot, and people are just probably afraid to go to the hospital unless they absolutely have to. How do you view - do you view this as somewhat of it is just going to be lost revenue. I guess you can't make up all the stuff, but inevitably, hopefully, we get some break and slowdown in this stuff, especially in some of the major cities. And people have to come for these procedures, right? So how do you sort of balance that? And any thoughts on that?

So Larry, it really is a popery here because the range of use of echocardiography really spans so many uses. You have inpatients where echocardiography is used as part of the kind of the routine evaluation of patients who are already being - it's part of their inpatient care. You have echocardiography as part of the prescreening of patients who are being admitted into hospitals for elective procedures. You have echocardiography as part of ongoing cardiac screening of patients who are being monitored for their cardiac status. And you're right, for some of the latter uses that I just mentioned there, right now, those uses are suspended. Because patients aren't being screened - they're not having the pre-hospital screening done for elective procedures because those elective procedures have been postponed. Patients aren't going to their physicians' offices for kind of normal ongoing health assessments on a yearly basis. And so those echocardiography studies aren't being ordered. To the question of whether they are lost revenue, the only echocardiograms that we see as lost revenue right now are what we call serial echocardiograms. And those are patients who for what could be a variety of reasons also are currently scheduled to, per se, have an echo done every 3 months. So they might be post-AAA repair or post some other kind of cardiac repair, where they were on a standing schedule of having an echo done every three months. And because of the timing of this pandemic, it's very likely that, that patient will not have one of those echos done. That they'll just, by the time they move on to what would be the next echo. I can't tell you across the full universe of use of echocardiography, what percent those patients represent. That is just not a level of detail of data we have. You heard Bob speak to what we are seeing as the level of reduction in our revenue. It's a really fluid assessment that we're making. It's very different geographically as is the pandemic across the nation. You have - and we're seeing that especially now as we see different parts of the country reopened at different rates. We're going to continue to see that. So we are monitoring this in real-time, we are with our customers in real time, we will continue to kind of follow it. But I think we're all suffering in some ways from a lack of intricate detail, and I know it's tough because it's a very financial business that we run, but I think we're all doing our best to try to understand what's happening in real time.

Understood, understood. How about just on - qualitatively, maybe on the R&D side, obviously, with your programs and then a couple - I don't know how much you could speak to Progenics yet, but obviously, with their - the pending, hopeful filing for the PSMA antigen in the back half of this year and just R&D trials and work, does some of that, I assume, get delayed or pushed out, just because of logistics and inability to get patients in the prudent of the trials? And how do you view that stuff?

So I think there's two different questions into 1 there, because you referenced filings versus trials. There's no need to stop forward progress with the preparation of filings, and that's certainly - Progenics saved very important work going on for the preparation of the PyL filing. That is filing in progress because those trials are closed. All the patients have been enrolled that's about data preparation and file preparation. No need - there's no lack of forward progress in files like that. From clinical trial enrollment, and I'm speaking generally for the larger fields here, I'd say it's very fair to say there has been a general stop to clinical trial enrollment for very valid reasons. Depending on what you're studying, these are patients who are usually at risk for one reason or another, and these are not the patients. And unless they are so at risk that they - truly, the risk outweighs - the benefit of the trial drug outweighs the risk of bringing them to a clinical site to administer in a COVID environment. That's a decision that's being made on a trial-by-trial basis. But for oral trials where the benefit of the trial does not outweigh the risk of bringing the patient to a site where there is risk of exposure to COVID, it's fair to say that enrollment has been paused.

[Operator Instructions] All right. We show no further questions at this time. Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.