GE HealthCare is set to take complete control of Nihon Medi-Physics Co., Ltd (NMP) by purchasing the remaining 50% ownership from Sumitomo Chemical. Integrating NMP into GE HealthCare enables the company to enhance its capabilities in researching and manufacturing radiopharmaceuticals used in SPECT and PET imaging technologies crucial in disease detection and diagnosis. The acquisition is anticipated to finalize in early 2025, pending regulatory approvals.
NMP’s suite of products includes GE HealthCare radiopharmaceuticals used for clinical imaging in neurology, cardiology, and oncology, such as Vizamyl injection for Alzheimer’s, DaTSCAN injection for suspected Parkinson’s and dementia diagnoses, and Myoview for SPECT myocardial perfusion imaging in coronary artery disease evaluation. Established in Tokyo in 1973, NMP reported revenues of 28.2 billion JPY (~$183 million) in 2023 and is equipped with 13 manufacturing sites focusing on research and development in the field of radiotracers and theranostics. GE HealthCare has maintained a 50% share in NMP since its acquisition of Amersham plc in 2004 and currently holds three board positions.
Kevin O’Neill, president & CEO of GE HealthCare’s Pharmaceutical Diagnostics (PDx) section, remarked, “Japan stands as the world’s third-largest pharmaceutical market and is advancing toward leadership in the $7 billion global molecular imaging sector. NMP’s expertise will significantly contribute to furthering this progress, and it will support global innovators in launching new products in Japanese and international markets, strengthening our precision care approach across Asia.”
Hiroshi Ueda, executive vice president at Sumitomo Chemical, stated, “We take pride in our long-standing association with NMP and the collaboration with GE HealthCare to provide Japanese patients with molecular imaging advancements. With GE HealthCare at the helm, NMP is poised to continue its growth and impact. I commend NMP’s talented team for their vital contributions.”
As a vanguard in global medical tech and pharmaceutical diagnostics, GE HealthCare employs advanced molecular imaging tools, including novel radiotracers in pivotal medical fields. The recent FDA approval of Flyrcado and the advancement of theranostics showcase GE HealthCare’s dedication to innovative diagnostics that enhance patient outcomes. Globally, GE HealthCare’s PDx segment significantly influences over 120 million imaging procedures yearly.
The transaction is anticipated to remain neutral to Adjusted EPS in its initial year but is forecasted to be beneficial in subsequent years. GE HealthCare was represented by Solomon Partners Securities, LLC in this deal.