Siemens Healthineers is planning to purchase the diagnostic arm of Novartis’ Advanced Accelerator Applications (AAA), for a sum exceeding €200m ($224m), reported Financial Times (FT).
Novartis had received Siemens Healthineers’ binding offer in this regard.
This acquisition is expected to strengthen Siemens Healthineers' position in the medical imaging sector, particularly in the production of radioactive chemicals essential for PET scans used in cancer detection.
Subject to regulatory approval and negotiations with Novartis's works council, the deal is anticipated to conclude in the final quarter of the year.
The acquisition will enable Siemens Healthineers to expand its reach into the European market.
AAA, acquired by Novartis in 2017 for $3.9bn, has Europe's second-largest cyclotron network, crucial for manufacturing the radioactive compounds used in PET scans to detect various diseases.
Siemens Healthineers, separated from Siemens in 2017, views this transaction as a significant step in securing a steady supply of critical materials for its imaging equipment business.
Novartis's acquisition of AAA was initially aimed at gaining access to radiopharma drugs.
AAA's flagship drug, Lutathera, approved in 2018 for treating neuroendocrine tumours, is projected to achieve sales of $704m this year.
However, Novartis decided to divest AAA's diagnostics division, the smaller segment of the business, to focus on molecular imaging growth under a dedicated diagnostics entity.
Furthermore, as part of the agreement, Siemens Healthineers and Novartis will collaborate to enhance the supply of nuclear isotopes used in radiopharma drugs like Lutathera.
Siemens Healthineers will remain a partner in the Novartis radioligand therapy (RLT) business, reported Reuters.
In a separate announcement, Siemens Healthineers company Varian has launched HyperSight imaging solution for its TrueBeam and Edge systems in the Asia Pacific region (excluding China).
HyperSight is designed to optimise workflows across Varian’s entire suite of linear accelerators. This allows more tailored treatment for each patient.
