Deal expands GE HealthCare's footprint in radiopharmaceuticals, its fastest-growing segment
By Peter Loftus
GE HealthCare Technologies said Monday it planned to purchase a manufacturer of radioactive substances used in medical imaging procedures for $945 million in cash.
The deal marks a continued push by medical-equipment maker GE HealthCare into the growing market for radiopharmaceuticals, which have uses for both diagnosing and treating diseases including cancer, heart disease and Alzheimer's.
Drugmakers such as Novartis and other devicemakers have been investing in the segment. In August, Curium struck a deal to acquire Lantheus Holdings for an initial $6.7 billion in a consolidation of two radiopharma companies.
The details
GE HealthCare has agreed to acquire Sofie Biosciences from private-equity firm Trilantic North America, the company said.
Sofie makes tracer agents that are injected into patients during PET scans, which help create images of tumors or other hidden parts of the body.
Sofie, based in Dulles, Va., operates a network of specialized pharmacies that distribute the tracers used in PET scans. The deal will include the U.S. rights to FAPI-74, a tracer that is in late-stage clinical trials for detecting cancers that GE HealthCare thinks can be a big seller if it is cleared by regulators. GE HealthCare already holds rights to the tracer outside the U.S.
The context
GE HealthCare's pharmaceutical-diagnostics business, which includes the injections used in PET scans, had $2.9 billion in revenue last year. Revenue from the division rose about 15% in the second quarter and comprises about 16% of the company's total. Chief Executive Peter Arduini has identified radiopharmaceuticals as a key focus for the company, which has been experiencing slower growth in other parts of its business.
"It's the fastest-growing segment of our business today, radiopharmaceuticals," said Kevin O'Neill, head of GE HealthCare's pharmaceutical-diagnostics business. "This is why it's important to invest in this segment."
GE HealthCare sees the deal closing in the first half of 2027 and expects it to add to revenue in the first full year of ownership. Sofie will continue to operate as a contract manufacturer for other companies.