GE HealthCare (Nasdaq: GEHC) has reached an agreement to acquire the remaining 50% stake in Nihon Medi-Physics Co., Ltd. (NMP) from Sumitomo Chemical (TYO: 4005), giving it full ownership of the company. This acquisition will strengthen GE HealthCare’s capabilities in developing and manufacturing radiopharmaceuticals used in molecular imaging procedures, including single photon emission computed tomography (SPECT) and positron emission tomography (PET). The deal is expected to close in early 2025, subject to regulatory approvals.
Founded in 1973 and headquartered in Tokyo, NMP generated ¥28.2 billion (~$183M) in revenue in 2023. The company operates 13 manufacturing facilities and specializes in research and development, including the clinical and nonclinical development of radiotracers and theranostics. NMP’s product portfolio includes radiopharmaceuticals crucial for clinical imaging in neurology, cardiology, and oncology, such as VIZAMYL® (Flutemetamol (18F) Injection) for Alzheimer’s diagnosis, DaTSCAN® (Ioflupane (¹²³I) Injection) for Parkinson’s disease and dementia with Lewy bodies, and MYOVIEW® (Technetium (99mTc) Tetrofosmin) for SPECT myocardial perfusion imaging in coronary artery disease.
GE HealthCare has held a 50% stake in NMP since acquiring Amersham plc in 2004 and currently holds three positions on NMP’s board.
Strengthening GE HealthCare’s Precision Care Strategy in Asia
Kevin O’Neill, President & CEO of GE HealthCare’s Pharmaceutical Diagnostics (PDx) segment, highlighted Japan’s potential as a leader in the global $7 billion molecular imaging market. “NMP will play a key role in this transformation, contributing its deep expertise and scale to bring innovative products to both the Japanese market and other regions,” O’Neill said. He also emphasized that the acquisition will further enhance GE HealthCare’s precision care strategy in Asia, building on the company’s strong presence in Japan, where its contrast media and medical devices are used daily for imaging procedures.
A Legacy of Partnership and Growth
Hiroshi Ueda, Executive Vice President of Sumitomo Chemical, expressed pride in the 50-year relationship with NMP and GE HealthCare. “We believe GE HealthCare is the ideal partner to ensure the continued success of NMP’s growth trajectory,” Ueda said. He acknowledged NMP’s leadership and team for their dedication to advancing molecular imaging and benefiting patients in Japan.
GE HealthCare’s Ongoing Innovation in Molecular Imaging
As a global leader in medical technology and pharmaceutical diagnostics, GE HealthCare continues to innovate in molecular imaging. Recent achievements include the U.S. FDA approval of its first PET radiopharmaceutical, Flyrcado™ (flurpiridaz F 18 injection), the in-licensing of Phase II FAPI assets, and expanded theranostics offerings. These innovations exemplify GE HealthCare’s commitment to developing novel diagnostics that improve patient outcomes.
The company’s PDx segment supports over 120 million patient procedures annually worldwide, with GE HealthCare’s imaging agents playing a crucial role in procedures across major care areas.
The acquisition is expected to have a neutral impact on GE HealthCare’s adjusted earnings per share (EPS) in the first year, with accretive benefits in subsequent years.
