Management reports healthy same-store sales growth in Sterigenics, with no material pull-forward effects from supply chain shifts or tariffs.
The company is actively engaging with customers on supply chain optimization but has not observed significant volume increases due to supply chain relocations.
Future opportunities for supply chain optimization are being explored, but current capacity and performance remain stable, with no adverse impact on growth.
Market Dynamics and Pricing Pressures in PSMA PET Market
In Q2 2025, the company faced intensified competitive pricing pressures from an F-18 competitor, leading to renegotiations and account losses, especially in accounts sensitive to economics and MUC-based reimbursement.
Despite volume growth of 2% YoY and over 4% sequentially for PYLARIFY, the company experienced lower-than-expected sales due to aggressive discounting and market share erosion in certain accounts.
Management emphasized disciplined pricing strategies to preserve long-term franchise value, including expanding strategic partnerships and enhancing communication of PYLARIFY's clinical differentiation.
The company expects continued volume growth in the second half of 2025 but anticipates further net price compression, especially in Q4, due to renegotiated contracts and government price reporting delays.
Market stabilization signs are emerging, but competitive pressures remain a key challenge, prompting ongoing customer engagement and educational initiatives.
Dafinchi