GE HealthCare To Buy Out Japan's Nihon Medi-Physics; Terms Not Disclsoed

(RTTNews) - GE HealthCare Technologies Inc. (GEHC) announced its agreement to acquire the remaining 50% stake in Nihon Medi-Physics Co., Ltd or NMP it does not already own from Sumitomo Chemical. The financial terms of the deal were not disclosed.

The company expects the deal to buy the Japanese radiopharmaceutical company to close in early 2025, subject to regulatory approvals.

The transaction is projected to be neutral to GE HealthCare's adjusted earnings per share in year one and accretive thereafter.

GE HealthCare has held its 50% stake in NMP since acquiring Amersham plc in 2004 and holds three positions on its Board of Directors.

NMP's product portfolio includes GE HealthCare radiopharmaceuticals used to enable clinical images across neurology, cardiology and oncology procedures. NMP generated revenues of around $183 million in 2023. It has 13 manufacturing facilities, and also focuses on research and development, including nonclinical and clinical development of radiotracers and theranostics research.

With the acquisition, GE HealthCare expects NMP to build on its expertise developing and manufacturing proprietary and in-licensed radiopharmaceuticals used in single photon emission computed tomography or SPECT and positron emission tomography or PET molecular imaging procedures to detect and diagnose disease.

Kevin O'Neill, President & CEO of the Pharmaceutical Diagnostics (PDx) segment of GE HealthCare, said, "As the third largest pharmaceutical market in the world, and amongst the leading countries by number of cyclotrons, 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."

In the deal, GE HealthCare was advised by Solomon Partners Securities, LLC.