GE HealthCare to Acquire Full Ownership of Nihon Medi-Physics from Sumitomo Chemical

GE HealthCare (NASDAQ: GEHC) announced an agreement to acquire Sumitomo Chemical’s 50% stake in Nihon Medi-Physics Co., Ltd. (NMP), assuming full ownership of the Japanese radiopharmaceutical company. The deal, subject to regulatory approval, is expected to close in early 2025.

NMP specializes in radiopharmaceuticals for single photon emission computed tomography (SPECT) and positron emission tomography (PET) molecular imaging, supporting diagnoses in neurology, cardiology, and oncology. Its portfolio includes FDA-approved products like VIZAMYL for amyloid visualization in Alzheimer’s disease, DaTSCAN for Parkinson’s Disease diagnosis, and MYOVIEW for myocardial perfusion imaging.

Headquartered in Tokyo, NMP was established in 1973 and generated ¥28.2 billion (~$183 million) in revenue in 2023. The company operates 13 manufacturing facilities and conducts research in radiotracers and theranostics. GE HealthCare has held a 50% stake in NMP since acquiring Amersham plc in 2004.

Kevin O’Neill, CEO of GE HealthCare’s Pharmaceutical Diagnostics segment, said:

“Japan is on a path to becoming a leader in the $7 billion molecular imaging global market and a center of excellence for Asian markets. NMP will play a key role in that journey, including bringing its deep expertise and scale to global innovators looking to bring novel products to the Japan market and beyond. This will strengthen our precision care strategy in Asia and our existing footprint in Japan, where our contrast media and medical devices are used every day to enable imaging procedures across the country.”

Hiroshi Ueda, Executive Vice President of Sumitomo Chemical, commented:

“We are proud of our 50-year relationship with NMP and our partnership with GE HealthCare to ensure patients in Japan could benefit from access to molecular imaging. At a time of exciting developments in the industry, following its discussions with Sumitomo Chemical, we believe GE HealthCare is the best owner to enable NMP to continue its successful growth journey. I would like to recognize NMP’s leadership and talented team for their significant achievements to date and their commitment to patients.”

The transaction bolsters GE HealthCare’s Pharmaceutical Diagnostics segment, which delivers imaging agents for over 120 million patient procedures annually worldwide. The company expects the acquisition to be neutral to adjusted EPS in the first year and accretive thereafter.

Topics: HealthTech