Siemens Healthineers to Acquire Novartis’ European Radiodiagnostic Production Network

As part of its strategy to expand PET imaging capabilities, Siemens Healthineers will acquire the radiodiagnostic production and distribution platforms affiliated with Novartis’ Advanced Accelerator Applications (AAA).
The deal, originally reported by Global Daily, is valued at over 200 million euros ($223 million) and includes manufacturing facilities that produce radioactive tracers for scans related to cancer, heart disorders, and other diseases such as Alzheimer’s.
This acquisition will allow Siemens Healthineers to significantly extend its PET diagnostic operations in Europe, where AAA oversees the second-largest network of cyclotrons used for creating radioactive medical isotopes. Given that these imaging agents are designed to have short half-lives, it is crucial that they are manufactured close to patients. These agents are used to identify candidates for future treatments with advanced radiotherapies.

Siemens Healthineers described the radiopharmaceutical market as being “at the precipice of a lot of change,” driven by new product development and advancements in novel treatment methods and therapeutic applications.
“The number of patients with cancer and neurodegenerative diseases is growing rapidly as life expectancy increases,” commented Jim Williams, head of molecular imaging at Siemens Healthineers. “We are very much looking forward to expanding our capabilities, especially considering that Advanced Accelerator Applications runs an excellent business, has significant experience in the nuclear medicine sector, and has generated strong revenues.”
Currently, Siemens Healthineers’ PETNET Solutions, based in the United States, operates 47 cyclotron-powered facilities worldwide, including in the United States, United Kingdom, and Paris, and serves as a contract manufacturer for radiopharmaceuticals. The acquisition of AAA will add 14 more production facilities across France, Spain, Portugal, Italy, Germany, and Switzerland, focusing on the production of the radioactive isotope fluorine-18, used in medical diagnostics.

Novartis originally acquired AAA for $3.9 billion and holds a 68% stake in the firm. Later, Novartis acquired Pluvicto for $2.1 billion, which led to FDA approval for its use against prostate tumors. Both AAA and Pluvicto utilize the radioactive isotope lutetium-177, which is combined with specific ligands to target and destroy cancer cells.

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