Shares of Lantheus Holdings (NASDAQ: LNTH) were skyrocketing on Wednesday, up 34% as of 11:20 a.m. ET. The big gain came after the Centers for Medicare and Medicaid Services (CMS) released a proposed rule that would boost the Medicare reimbursement rate for diagnostic radiopharmaceuticals.

In the past, CMS has bundled the costs of diagnostic radiopharmaceuticals in with the payment for related nuclear medicine tests. The agency said that in some cases, this payment doesn't fully cover the cost of the associated diagnostic radiopharmaceuticals. CMS is proposing to pay for diagnostic radiopharmaceuticals with a cost greater than $630 per day separately from the nuclear medicine tests.

Roughly 70% of Lantheus' total revenue in the first quarter of 2024 came from its diagnostic radiopharmaceutical products. Pylarify, the company's radioactive diagnostic agent for prostate cancer imaging scans, generated most of its diagnostic radiopharmaceutical sales.

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Source Fool.com