GE HealthCare (GEHC.US) plans to acquire Sofie for $1 billion, aiming for high growth in the radiopharmaceutical sector

According to Golden Ten Data APP, sources reveal that GE HealthCare Technologies (GEHC.US) is in advanced negotiations to acquire Sofie Biosciences for approximately $1 billion, a move that would expand its presence in the field of radiopharmaceuticals used in medical imaging.

The two companies could announce the deal as early as this week, though talks may still change or fall through.

Sofie develops radiopharmaceuticals and operates a production network for short-lived radioactive materials used in positron emission tomography (PET) scans. Its research pipeline includes diagnostic drugs aimed at detecting certain gastroesophageal and pancreatic cancers.

Acquiring Sofie would enhance GE HealthCare’s pharmaceutical diagnostics business, which provides substances administered to patients before imaging exams. It would also strengthen the company’s position in a fast-growing sector that combines specialized drugs with the scanning equipment already sold by GE HealthCare.

By selling both imaging devices and the complementary diagnostic drugs, this acquisition could help GE HealthCare generate more revenue from each medical scan. Compared to large scanning devices, radiopharmaceuticals may also deliver more recurring revenue, since hospitals purchase major scanning equipment less frequently.

For investors, the key questions are whether GE HealthCare is paying a reasonable price and how quickly Sofie can turn its research pipeline into commercially meaningful sales.

If this deal goes through, it would be GE HealthCare’s second major acquisition since its spin-off from General Electric in January 2023. Since its market debut, the company’s share price has risen around 12%, trailing the much stronger performance of former GE sister companies GE Vernova (GEV.US) and GE Aerospace (GE.US).

GE HealthCare has been seeking ways to improve growth and focus on its core business. In July this year, the company began evaluating strategic options for its Patient Care Solutions division. Activist investor Trian Fund Management, which helped drive the GE separation, has also increased its stake in GE HealthCare to nearly $200 million.

Sofie is currently still primarily owned by its founders and executives. In 2024, Trilantic acquired a 25.8% stake in the company, valuing it at up to $550 million at the time. A sale near $1 billion would be a significant premium to that valuation, putting pressure on GE HealthCare to deliver strong growth from this business.