GE HealthCare secures complete ownership of Nihon Medi-Physics

USA – GE HealthCare has completed its acquisition of the remaining 50% stake in Nihon Medi-Physics Co., Ltd (NMP) from Sumitomo Chemical, achieving full ownership of the Tokyo-based radiopharmaceutical company.

This strategic acquisition is expected to enhance GE HealthCare’s presence in Japan’s rapidly growing molecular imaging market, valued at approximately US $7 billion globally.

NMP specializes in developing and manufacturing proprietary and in-licensed radiopharmaceuticals used in single photon emission computed tomography (SPECT) and positron emission tomography (PET) molecular imaging procedures.

These technologies are crucial for detecting and diagnosing various diseases across multiple therapeutic areas, including neurology, cardiology, and oncology.

Kevin O’Neill, President & CEO of GE HealthCare’s Pharmaceutical Diagnostics (PDx) segment, and the new President of NMP, expressed excitement about the acquisition.

He stated, “We are delighted to welcome Nihon Medi-Physics to GE HealthCare, increasing our existing footprint and offering in Japan, where our contrast media and medical devices are used every day to enable imaging procedures across the country.”

O’Neill highlighted Japan’s potential as a leader in the global molecular imaging market and as a center of excellence for Asian markets.

As part of GE HealthCare, NMP will leverage its expertise and scale to support global innovators aiming to bring next-generation radiopharmaceuticals to Japan and beyond.

Enhancing molecular imaging capabilities

Founded in 1973, Nihon Medi-Physics has established itself as a key player in the molecular imaging industry, generating revenues of approximately 28.2 billion JPY (US $183 million) in 2023.

The company’s extensive product portfolio includes radiopharmaceuticals designed to support imaging procedures in areas such as neurology, cardiology, and oncology.

NMP’s capabilities in molecular imaging are expected to complement GE HealthCare’s broader vision of expanding diagnostic imaging services worldwide.

By incorporating NMP’s innovative solutions, GE HealthCare aims to enhance diagnostic accuracy, improve patient outcomes, and drive innovation in the field of radiopharmaceuticals.

GE HealthCare’s acquisition of the remaining 50% stake in NMP follows its 2004 acquisition of Amersham plc, which initially gave GE HealthCare a 50% stake in NMP.

With this full acquisition, GE HealthCare intends to further strengthen its leadership position in molecular imaging, particularly in the Japanese market.

The company anticipates that the acquisition will be neutral to its Adjusted Earnings Per Share (EPS) in the first year and accretive thereafter, indicating a positive financial impact in the years to come.

Strategic move in a competitive market

The acquisition aligns with GE HealthCare’s broader strategy of expanding its presence in high-growth markets.

Japan, with its well-developed healthcare infrastructure and strong demand for advanced imaging technologies, represents a significant opportunity for GE HealthCare to enhance its molecular imaging capabilities.

Solomon Partners Securities, LLC acted as GE HealthCare’s advisor for the transaction. The company announced its intent to acquire the remaining 50% stake in NMP in December 2024, highlighting its commitment to strengthening its diagnostic imaging portfolio.

As part of GE HealthCare, NMP is expected to play a crucial role in advancing molecular imaging technologies and supporting the development of next-generation radiopharmaceuticals.