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GE HealthCare Technologies Inc. GEHC, yesterday, announced the completion of its acquisition of the remaining 50% stake in Nihon Medi-Physics Co., Ltd (“NMP”) from Sumitomo Chemical, giving it full ownership. The intent to acquire the remaining 50% stake in NMP was announced in December 2024.
GE HealthCare acquired Amersham plc in 2004 and subsequently held a 50% stake in NMP.
As part of GE HealthCare, NMP is expected to enhance patient access to next-generation radiopharmaceuticals that enable the detection and diagnosis of disease in Japan.
The latest move is expected to significantly strengthen GE HealthCare’s Pharmaceutical Diagnostics (PDx) segment, thus boosting its business in the niche space.
Likely Trend of GEHC Stock Following the News
Following the announcement, shares of the company gained nearly 0.9% till yesterday’s trading.
Historically, the company has gained a high level of synergies from its partnerships. We expect market sentiment on the stock to remain positive around this announcement too.
GE HealthCare currently has a market capitalization of $36.91 billion. It has an earnings yield of 5.8%, better than the industry’s 0.3%. In the last reported quarter, GEHC delivered an earnings surprise of 15.1%.
Rationale Behind GE HealthCare’s Acquisition
NMP’s product portfolio includes GE HealthCare radiopharmaceuticals, which are used to enable molecular imaging across neurology, cardiology and oncology procedures.
Per GE HealthCare’s estimates, Japan is currently on track to become a key player in the $7 billion molecular imaging global market and a center of excellence for Asian markets. GE HealthCare’s management believes that the addition of NMP will likely expand its existing footprint and offerings in Japan, where its contrast media and medical devices are widely used to enable imaging procedures across the country.
As part of GE HealthCare, NMP is expected to play a key role in bringing its deep expertise and scale to global innovators looking to bring next-generation radiopharmaceuticals to the Japanese market and beyond.
GE HealthCare expects this transaction to be neutral to adjusted earnings per share in year one and accretive thereafter.
Industry Prospects in Favor of GEHC
Per a report by Data Bridge Market Research, the global radiopharmaceuticals market was valued at $15.31 billion in 2023 and is anticipated to reach $25.33 billion by 2031 at a CAGR of 6.5%. Factors like advancements in nuclear medicine and increasing applications in both diagnostic and therapeutic sectors, and the growing prevalence of chronic diseases are likely to drive the market.