In a recent development taking place in the last week of August 2024, Siemens Healthineers has gone ahead and agreed to pay over 200 million euros, which is equivalent to $223 million, to purchase a part of the radiopharmaceutical business of Novartis. The report has been brought to the fore by the Financial Times. The deal goes on to include in it manufacturing as well as distribution network pertaining to Advanced Accelerator Applications- AAA Molecular Imaging. Interestingly, Novartis went ahead and acquired AAA for a whopping $3.9 billion in 2017 and is going to retain the therapeutics business of the company. The fact is that buying the diagnostic arm of AAA is going to expand the positron emission tomography- PET radiopharmaceuticals unit of Siemens in Europe.
Bernad Montag, the Siemens CEO, said on earnings call in July 2024 that the Petnet unit, which happens to be at present focused on the US, is indeed a mid-triple digit million kind of business.
Notably, Novartis as well as other drugmakers have gone on to invest in radiopharmaceuticals so as to treat cancer.
The program needs a radioactive compound supply that has to be produced close to patients because they happen to have short half-lives. The compounds happen to be used in drugs as well as in diagnostics, which go on to identify patients who are eligible for radiological therapy, which is a targeted cancer treatment, and also in PET imaging of cancer as well as neurodegenerative diseases.
It is worth noting that the Petnet business of Siemens has gained immensely due to the elevated demand when it comes to radiopharmaceuticals. The company happens to have 47 radiopharmacies that are cyclotron-powered, a figure that, according to a Siemens spokesperson, happens to make it the largest supplier in terms of PET radiopharmaceuticals.
Apparently, the network happens to be focused on the US. Although Petnet does operate across the U.K. as well as Paris. Notably, buying Novartis assets is going to add 14 manufacturing sites throughout Spain, Portugal, Italy, Germany, and France, as well as a few selected assets based in Switzerland.
The expansion of the network is going to mean that Siemens will be close enough to a larger number of patients so as to supply radioactive compounds that are short-lived.
Montag did discuss the plans to invest in the Petnet network on the basis of the earnings call in July 2024, letting investors know that establishing novel production facilities goes on to elevate patients access when it comes to PET biomarkers and also supports the development in terms of new biomarkers.
The CEO further says that making new biomarkers available is going to enhance access to updated individualized care. It is well to be noted that the advances in Alzheimer’s disease treatment are indeed elevating interest in terms of usage of PET scans outside the oncology gamut. The imaging technique can go on to measure buildup when it comes to abnormal amyloid protein found in the brain. The protein, without a shred of doubt, happens to be a hallmark of Alzheimer’s and is also a target of new medicines like Leqembi from Eisai and Buogen, thereby giving PET scans a major role when it comes to diagnosing the disease and at the same time tracking the effect as far as treatment is concerned.
