Siemens Healthineers is acquiring the diagnostic division of Novartis' Advanced Accelerator Applications for $224 million, enhancing its position in the PET scan market.

Overview of the Deal

Siemens Healthineers has announced its intent to acquire the diagnostic division of Novartis' Advanced Accelerator Applications (AAA) for a total transaction value exceeding €200 million ($224 million). The deal is anticipated to close in the fourth quarter of 2024, pending regulatory approval. This strategic acquisition aims to enhance Siemens' capabilities in medical imaging, specifically in the production of radioactive materials crucial for PET scans which are widely used in cancer detection. By integrating AAA's extensive cyclotron network, Siemens aims to strengthen its market presence across Europe.

Since Novartis acquired AAA in 2017 for $3.9 billion, the company has decided to divest the diagnostics arm to concentrate on its molecular imaging endeavors. Despite AAA's drug, Lutathera, being projected to achieve sales of $704 million this year, the diagnostic division represents a smaller portion of the business. The collaboration will continue post-acquisition as Siemens and Novartis work together to enhance the supply of nuclear isotopes for radiopharmaceuticals, including Lutathera.

Industry Overview in France

The diagnostic imaging industry in France, particularly concerning PET scans, is experiencing notable advancements and growth. France is home to state-of-the-art medical technology facilities, contributing to a robust healthcare sector foc