GE HealthCare has announced its plan to acquire the remaining 50% stake in Nihon Medi-Physics Co., Ltd. (NMP) from Sumitomo Chemical (TYO: 4005), securing full ownership of the company. This strategic move will integrate NMP, a leader in radiopharmaceuticals, fully into GE HealthCare’s operations. The deal is expected to close by early 2025, pending regulatory approval.
NMP has built a strong reputation for its expertise in developing and manufacturing proprietary and licensed radiopharmaceuticals. These products play a critical role in molecular imaging techniques like single photon emission computed tomography (SPECT) and positron emission tomography (PET), which are essential for diagnosing and detecting various diseases. By becoming a part of GE HealthCare, NMP aims to expand its capabilities and global reach.
NMP’s Extensive Portfolio and Expertise
NMP’s product lineup includes cutting-edge radiopharmaceuticals used in a variety of medical imaging applications. Among its flagship products are:
- VIZAMYL® Injection (Flutemetamol (18F) Injection): A radiotracer used in Alzheimer’s disease imaging to visualize amyloid plaques.
- DaTSCAN® Injection (Ioflupane (¹²³I) Injection): A diagnostic agent for evaluating patients with suspected Parkinson’s Disease or Dementia with Lewy Bodies.
- MYOVIEW® (Technetium (99mTc) Tetrofosmin): A radiopharmaceutical used in myocardial perfusion imaging to assess coronary artery disease.
Founded in 1973 and headquartered in Tokyo, NMP generated revenues of approximately 28.2 billion JPY (around $183 million USD) in 2023. The company operates 13 manufacturing facilities and focuses heavily on research and development, including clinical and non-clinical studies of radiotracers and advancements in theranostics, a promising area in precision medicine.
Building on a Long-Standing Partnership
GE HealthCare has held a 50% stake in NMP since acquiring Amersham plc in 2004, maintaining a significant influence on the company’s direction, including three seats on its Board of Directors. This acquisition marks a deepening of the relationship between the two entities, with GE HealthCare now fully integrating NMP’s expertise and infrastructure into its broader operations.
Kevin O’Neill, President and CEO of GE HealthCare’s Pharmaceutical Diagnostics (PDx) segment, highlighted the strategic significance of this acquisition. “Japan, as the third-largest pharmaceutical market globally and a leader in cyclotron infrastructure, is well-positioned to become a center of excellence in the $7 billion molecular imaging market,” O’Neill stated. He emphasized NMP’s critical role in advancing precision care strategies across Asia and the world, particularly in partnership with global innovators bringing new imaging products to market.
Hiroshi Ueda, Executive Vice President of Sumitomo Chemical, expressed pride in NMP’s achievements over its 50-year history and confidence in GE HealthCare’s capacity to continue its growth trajectory. “We believe GE HealthCare is the best owner to ensure NMP’s ongoing success and development in an industry experiencing rapid advancements,” Ueda said.
Strengthening GE HealthCare’s Precision Diagnostics Strategy
GE HealthCare is a global leader in molecular imaging technologies and radiopharmaceuticals. The company’s PDx segment supports over 120 million patient procedures annually, which translates to an average of four procedures every second. Recent innovations, such as the FDA-approved PET radiopharmaceutical Flyrcado™ (flurpiridaz F 18 injection), in-licensed FAPI assets in Phase II development, and expanded theranostics offerings, demonstrate GE HealthCare’s commitment to transforming molecular imaging and improving patient outcomes.
The acquisition of NMP aligns seamlessly with GE HealthCare’s broader precision diagnostics strategy, leveraging advanced technologies to enhance disease detection and treatment planning.
Financial Implications and Advisory
The transaction is expected to have a neutral impact on GE HealthCare’s adjusted earnings per share (EPS) in the first year and become accretive in subsequent years. This reflects the acquisition’s strategic value and long-term potential to drive growth in the molecular imaging market.
GE HealthCare received advisory support for the transaction from Solomon Partners Securities, LLC. The full acquisition of NMP represents a significant step for GE HealthCare as it expands its footprint in the global molecular imaging market. With NMP’s robust portfolio and expertise, GE HealthCare is well-positioned to enhance its precision diagnostics offerings, particularly in Asia. The deal underscores GE HealthCare’s ongoing commitment to delivering innovative solutions that enable better healthcare outcomes for patients worldwide.
