Siemens Healthineers finalizes $223M purchase of Novartis’ imaging unit
Siemens Healthineers has finalized its purchase of the imaging assets of Novartis, the two announced Tuesday.
The Erlangen, Germany-based manufacturer did not disclose terms of the deal, which the Financial Times previously estimated was worth over $223 million. Siemens is acquiring Advanced Accelerator Applications, which Novartis previously bought in 2017 for $3.9 billion. AAA operates Europe’s second largest network of cyclotrons, used to manufacture radioactive compounds for diagnosing cancer, heart disease and neurological disorders via PET scans.
Siemens Healthineers believes the addition will complement its network of 47 PET radiopharmacies concentrated in the U.S., adding over a dozen manufacturing sites across France, Spain, Portugal, Italy and Germany. Proximity to patients is essential, the company noted, given the short half-lives of these PET products.
“The radiopharmaceutical sector is at an inflection point thanks in large part to innovation in the pharmaceuticals space, with PET serving as a gateway to patient eligibility for many of the new cancer and neurodegenerative-disorder therapies,” Jim Williams, head of molecular imaging at Siemens Healthineers, said in a Dec. 10 announcement. “But even the greatest therapy is of no use unless you can get it to patients in time, so we’re excited to be adding the molecular imaging capabilities of Advanced Accelerator Applications, its first-class operations, extensive experience in nuclear medicine and proven track record.”
Siemens said the deal includes AAA’s manufacturing and distribution network, its workforce of 420, an “established product portfolio,” and relationships with other radiogland imaging developers. Experts estimate the PET sector is worth about $538 million annually, a number expected to triple by 2033. Siemens sees opportunities for growth across oncology, neurology and cardiology. Its PETNet Solutions division also produces agents used for theranostics, which combines both therapy and diagnostics.
Currently, Siemens Healthineers’ molecular imaging business delivers 1.6 million patient doses to over 2,800 imaging centers each year. PETNet also operates as a contract development and manufacturer for multiple third-party IP holders.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.