GE HealthCare Acquires Nihon Medi-Physics, Leading Radiopharmaceutical Company in Japan
GE HealthCare Technologies Inc. (Nasdaq: GEHC) has successfully completed its acquisition of the remaining 50% stake in Nihon Medi-Physics Co., Ltd (NMP) from Sumitomo Chemical, thereby securing full ownership of the leading Japanese radiopharmaceutical company. This strategic move allows GE HealthCare to further enhance its capabilities in the development and manufacturing of proprietary and in-licensed radiopharmaceuticals. These radiopharmaceuticals are essential for single photon emission computed tomography (SPECT) and positron emission tomography (PET) molecular imaging, which are critical technologies used for detecting and diagnosing various diseases.
Kevin O’Neill, President & CEO of GE HealthCare’s Pharmaceutical Diagnostics (PDx) segment, who will also assume the role of President at NMP, expressed excitement about the acquisition: “We are thrilled to welcome Nihon Medi-Physics into GE HealthCare. This acquisition significantly expands our footprint and enhances our presence in Japan, a key market where our contrast media and medical devices are instrumental in supporting imaging procedures across the country. Japan is on track to become a global leader in the $7 billion molecular imaging market, and NMP will play a pivotal role in this transformation. With its expertise and scale, NMP will be essential in advancing next-generation radiopharmaceuticals, both in Japan and for international markets.”
Founded in 1973 and headquartered in Tokyo, NMP has been a cornerstone in the radiopharmaceutical industry, focusing on the production and development of radiopharmaceuticals for molecular imaging. The company’s portfolio includes a variety of GE HealthCare radiopharmaceuticals used in molecular imaging procedures across neurology, cardiology, and oncology. These products play a crucial role in diagnosing diseases and conditions in these specialties, making NMP an integral part of GE HealthCare’s global pharmaceutical diagnostics offerings.
In 2023, NMP reported revenues of ¥28.2 billion (~$183 million), highlighting its strong market position in Japan. GE HealthCare initially entered into a partnership with NMP in 2004 following its acquisition of Amersham plc, acquiring a 50% stake in NMP. This full acquisition marks the next step in GE HealthCare’s strategy to consolidate its leadership in the growing field of molecular imaging and enhance its presence in the Japanese market.
The acquisition is expected to be neutral to GE HealthCare’s adjusted earnings per share (EPS) in the first year, with the company anticipating positive contributions in subsequent years. The integration of NMP into GE HealthCare will enable the company to leverage NMP’s expertise and infrastructure, further strengthening its ability to innovate and bring new radiopharmaceutical products to market.
“We see immense opportunities ahead,” O’Neill continued. “The combination of GE HealthCare’s global reach and NMP’s deep local expertise positions us to accelerate the development and delivery of cutting-edge radiopharmaceuticals. This will not only benefit Japan, but also help bring advanced diagnostic solutions to other regions.”
Radiopharmaceuticals play an essential role in the rapidly evolving field of molecular imaging, which is used for diagnosing various medical conditions, particularly in oncology, neurology, and cardiology. As the global molecular imaging market continues to grow, Japan, with its highly developed healthcare infrastructure, is expected to be a leading hub for radiopharmaceutical development and innovation.
The full acquisition of NMP aligns with GE HealthCare’s long-term strategy to expand its footprint in the molecular imaging and pharmaceutical diagnostics market. By combining GE HealthCare’s resources and expertise with NMP’s specialized knowledge of radiopharmaceuticals, the company aims to drive growth in the molecular imaging sector and further advance diagnostic technologies worldwide.
Solomon Partners Securities, LLC provided advisory services to GE HealthCare during this transaction, helping facilitate the acquisition.
This acquisition further solidifies GE HealthCare’s position as a global leader in healthcare technology, particularly in the field of molecular imaging, and underscores its commitment to delivering innovative diagnostic solutions to healthcare providers and patients around the world. As GE HealthCare integrates NMP’s operations, the company remains focused on its mission to improve patient care through cutting-edge technologies and global collaboration.
