Siemens Healthineers Acquires Novartis' Molecular Imaging Business for €2 Billion to Strengthen Radiopharmaceutical Portfolio

On December 11, Siemens Healthineers completed the acquisition of the diagnostic business of Novartis subsidiary Advanced Accelerator Applications (hereinafter referred to as "AAA") for 200 million euros (approximately RMB 1.593 billion). The core assets of this acquisition focus on the radiopharmaceuticals required for the high-end molecular imaging equipment PET produced by AAA.

According to official sources, this transaction covers AAA Molecular Imaging's manufacturing and distribution network, approximately 420 employees, an established product portfolio, and partnerships with radioligand imaging developers.

In 2002, AAA was spun off from CERN, one of the largest experimental research centers in the world, and operates the second-largest cyclotron network in Europe, producing radioactive compounds used for detecting cancer, heart disease, and neurological disorders through PET scans.

In 2017, Novartis acquired AAA for $3.9 billion to expand its range of cancer-targeted drugs, including Lutathera (177Lu-Dotatate), a radiopharmaceutical under its umbrella used for treating neuroendocrine tumors.

It was also under the promotion of Novartis that AAA developed rapidly. Only in 2017, the European Medicines Agency (EMA) successively approved the adult indications of its subsidiaries SomaKit TOC (68Ga edotreotide) and Lutathera, and the FDA followed suit by approving the adult indications for Lutathera. From 2020 to 2024, the FDA consecutively approved multiple products including LOCAMETZ, Pluvicto, LYSAKARE, PLUVICTO and their companion diagnostic imaging agents LOCAMET, as well as the pediatric indications for Lutathera.

This time, Siemens Healthineers has acquired AAA's molecular diagnostics business. This business encompasses a PET and SPECT nuclear medicine imaging portfolio that AAA has meticulously developed over more than 15 years and successfully commercialized. These products are widely used in numerous indications within oncology, neurology, cardiology, as well as infectious and inflammatory diseases.

Especially in the field of oncology, AAA currently focuses on two targeted radioligand therapy products. At the same time, it offers multiple precision imaging products that play a significant role in clinical oncology, cardiology, neurology, and infectious/inflammatory diseases, providing doctors with more accurate and effective diagnostic tools.

In Siemens Healthineers' Q3 financial report, the medical imaging division remains the core competitiveness of Siemens Healthineers, achieving a 3.8% growth in comparable revenue, with an adjusted EBIT margin firmly at a high of 20.0%.

In terms of product innovation, Siemens Healthineers' Biograph Trinion PET/CT scanner also received FDA approval in 2024. The core of this scanner lies in its detector based on lutetium oxyorthosilicate (LSO) crystal elements, which not only achieves high spatial resolution but also enhances time-of-flight performance to an ultra-fast 239 picoseconds, improving scanning efficiency and effectively reducing the radiation dose received by patients.

Particularly worth mentioning is that the Biograph Trinion innovatively features a new air-cooled digital detector. Compared to the complex cooling systems of traditional water-cooled PET/CT scanners, its installation process is simpler and faster.

This acquisition aims to strengthen Siemens Healthineers' PETNET Solutions network. PETNET Solutions, part of Siemens Healthineers' molecular imaging business, operates 47 PET radiopharmacies across the United States, with 13 production sites in France, Spain, Portugal, Italy, and Germany, as well as a distribution network in Switzerland.

In recent years, SPECT and PET technologies have become the rising stars in the field of medical imaging. According to Sullivan's analysis, SPECT and PET technologies not only capture lesion information at the molecular level but also achieve precise anatomical localization. With the support of radionuclides, they can non-invasively and accurately generate medical images, improving the accuracy of disease diagnosis and differential diagnosis. Their technical highlights include high sensitivity, strong specificity, non-invasiveness, and excellent qualitative value.

And with the increasing popularity of high-end testing equipment such as SPECT/PET in hospitals, radiopharmaceuticals (nuclear medicine) represented by 99mTc have also entered a period of rapid development.

Drawn by this blue ocean market, the competition among giants in the field of radiopharmaceuticals is becoming increasingly fierce. Earlier this month, GE Healthcare announced it would acquire the remaining 50% stake in Nihon Medi-Physics ("NMP") from Sumitomo Chemical. The transaction is expected to be completed in early 2025. NMP holds a leading position in the Japanese market. Through the acquisition of NMP, GE Healthcare will enhance patient access to next-generation radiopharmaceuticals for disease detection and diagnosis, making NMP the preferred partner for global innovators seeking to introduce new radiopharmaceuticals into Japan and other Asian markets.

In addition, AstraZeneca acquired Fusion Pharmaceuticals for approximately $2 billion in March this year, while Bristol-Myers Squibb made a significant $4.1 billion acquisition of RayzeBio in December last year, aggressively entering the field. Not only did Eli Lilly enter the radiopharmaceuticals market by acquiring POINT Biopharma for $1.4 billion, but it also signed a $140 million agreement that reserves the option for a potential $1 billion acquisition of Radionetics Oncology in the future.

The Deep Integration of Radiopharmaceuticals and Imaging Technology is Giving Rise to a New Growth Pole in the Pharmaceutical Industry. In the future, competition among giants in the supply chain will become even more intense. The industrial linkage and coordinated development in this field will undoubtedly become an important force driving innovation and development in the pharmaceutical industry.