United States-based Lantheus Holdings has signed a contract to acquire United States-based Progenics Pharmaceuticals in an all-stock deal, it was reported yesterday.

According to the terms of the contract, Progenics shareholders will secure 0.2502 shares of Lantheus stock for each share of Progenics stock, indicating around 35% aggregate ownership interest in the combined entity. The merged company will cover additional radiopharmaceutical products for precision diagnostics and therapeutics diagnostics and therapeutics in the field of oncology, and related artificial intelligence platform with a 510(k) approved application in oncology. It will continue to conduct operations from headquarters in North Billerica of Massachusetts, upon completion of the deal.

The deal is subject to approval by Lantheus and Progenics stockholders, regulatory approvals, and customary closing conditions and is likely to be completed in the first quarter of 2020.