GE HealthCare nears a 1 billion dollar deal for cancer-scan tracer maker Sofie Biosciences
GE HealthCare is in advanced talks to buy Sofie Biosciences, a Virginia company that makes the radioactive tracer chemicals used in cancer scans, in a deal worth up to 1 billion dollars, the Financial Times reported on Sunday. An agreement could be announced as soon as this week. The purchase would be the medical-imaging group's second big acquisition since its split from General Electric, and it follows an April in which GE HealthCare cut its profit outlook and reshuffled its business units and executive team.
Economics & Markets··Morning
A 1 billion dollar deal for the chemicals behind cancer scans
GE HealthCare, the medical-imaging company that split from General Electric, is in talks to buy Sofie Biosciences in a deal worth up to 1 billion dollars, the Financial Times reported on Sunday, citing people familiar with the matter. Sofie makes radiopharmaceutical agents for cancer scans, the radioactive tracer chemicals given to patients so that scanners can find tumours. The trade publication Fierce Biotech also reported that GE HealthCare is on the cusp of buying out the radiopharmaceutical developer Sofie Biosciences, attributing the talks to the Financial Times. An agreement could be announced as soon as this week.[1], [2]
20 years of tracer chemistry in Dulles, Virginia
Sofie Biosciences is based in Dulles, Virginia, and has spent 20 years making the specialised chemicals used by the scanning machines that look for cancers. The Financial Times report, citing people familiar with the matter, described the purchase as the second big acquisition for the medical-imaging company since its split from General Electric. Neither company commented on the report, according to Fierce Biotech.[1]
A buyer that cut its profit outlook in April
The talks come after a difficult spring for the buyer. In April GE HealthCare cut its profit outlook and restructured its business units and its executive team. Until an agreement is signed, the talks remain talks: the Financial Times gave no date beyond an announcement that could come this week, and neither company confirmed the report.[1]
