GE HealthCare buys Sofie Biosciences for $945 million
GE HealthCare agreed Monday to buy Sofie Biosciences for $945 million in cash, adding a U.S. network that makes and delivers short-lived radioactive drugs used in PET scans. The deal also brings U.S. rights to a cancer-imaging agent in late-stage testing, as dealmaking heats up across the growing radiopharmaceutical industry.
GE HealthCare is spending nearly $1 billion to control more of the supply chain behind PET scans. The Chicago-based medical imaging company agreed Monday to buy privately held Sofie Biosciences for $945 million in cash, CNBC reported.
Sofie, founded in 2008 and based in Dulles, Virginia, makes and distributes radiopharmaceuticals, the radioactive drugs that light up tissue in PET scans. It runs 15 contract manufacturing sites with 21 cyclotrons, the machines that produce short-lived radioactive isotopes, Radiology Business reported. It also has a site focused on theranostics, which pair a diagnostic scan with a targeted treatment.
Speed is the reason that network matters. PET drugs labeled with fluorine-18 lose half their strength in about 110 minutes, so nearby production sites are crucial for getting doses to patients on time, GE HealthCare said. It said the deal gives it a foothold in that time-critical "final mile" of delivery.
The deal also brings U.S. rights to FAPI-74, an experimental imaging agent in late-stage testing that could help detect several types of cancer, CNBC reported. GE HealthCare already owns the rights outside the United States. Sofie already makes Flyrcado, GE's approved PET agent for detecting heart disease.
"The PET radiopharmaceutical market is expanding rapidly," said Kevin O'Neill, who leads GE HealthCare's pharmaceutical diagnostics business, according to Radiology Business. He said the company expects Sofie to grow in the low double digits and to add to revenue growth and adjusted earnings in its first full year.
Sofie will keep making products for its current customers, including rival drug companies, after the deal closes, which is expected in the first half of 2027. It is being sold by the private equity firm Trilantic North America.
Some background: Dealmaking in the field is rising as doctors use more radioactive drugs in cancer care. In August, Curium agreed to a deal worth up to $8 billion for Lantheus, CNBC noted. GE HealthCare also bought imaging software maker Intelerad for $2.3 billion in March. Its pharmaceutical diagnostics unit had $2.9 billion in revenue last year, the Financial Times reported, as cited by Radiology Business.
What we know: GE HealthCare is paying $945 million in cash, with closing expected in the first half of 2027.
What we don't: Whether FAPI-74 wins U.S. approval, and when.
Where outlets agree CNBC and Radiology Business both report that GE HealthCare will pay $945 million in cash for Sofie and gain U.S. rights to the cancer imaging agent FAPI-74.
Where they differ GE HealthCare says Sofie will add to its growth and earnings in the first full year, while the Financial Times, as cited by Radiology Business, reported that Trilantic's 2024 stake purchase valued Sofie at up to $550 million, well below the new price.