Siemens Healthineers has reached a deal to acquire the molecular imaging business of Swiss pharmaceutical corporation Novartis for $223 million (USD).

The Financial Times first reported the transaction on Aug. 24, citing two unnamed individuals briefed on the deal. Both Siemens and Novartis separately confirmed the news, according to the outlet.

Imaging industry giant Siemens is acquiring Advanced Accelerator Applications, which Novartis previously bought in 2017 for $3.9 billion. AAA operates Europe’s second largest network of cyclotrons, used to manufacture radioactive compounds for diagnosing cancer, heart disease and neurological disorders via PET scans.

Novartis sought to sell AAA’s diagnostic arm—the “much smaller part of the business,” according to the Times—after determining “growth of the molecular imaging business would be best supported under the ownership of a dedicated diagnostics shareholder.” The transaction is expected to close by the end of this year, pending regulatory approval.

Siemens said the acquisition will allow its U.S.-based PET radiopharmaceuticals business (the world’s largest) to expand into Europe.

Read more from the FT:

Siemens Healthineers boosts cancer imaging with €200mn Novartis deal

Source: Radiology Business