Siemens Pays $223.5 Million to ‘Swallow’ Novartis Diagnostics Division, Cancer Treatment Industry May See Major Changes!

Siemens Healthcare has agreed to acquire Novartis AG's diagnostics unit for $223.5 million, a move aimed at further strengthening its strength in cancer treatments. The acquisition involves the Advanced Accelerator Applications division that Novartis paid for in 2017, which operates the second largest network of cyclotrons in Europe and is critical to the development of PET scanning technology. With this transaction, Siemens Healthcare will be able to expand its PET radiopharma business in Europe, further consolidating its leading position in the imaging market. Especially in the diagnosis of cancers such as lung, breast and cervical cancer, Siemens Healthcare will have a stronger competitiveness.

Novartis decided to sell its diagnostics division because of its relatively low growth potential, while Siemens Healthcare's imaging division is one of its biggest revenue generators. According to the financial report of the last quarter, Siemens Healthcare's imaging division sales accounted for more than half of the group's total revenue. The acquisition will not only enhance Siemens Healthcare's business strength, but also enable Novartis to further focus on its core business areas.

In addition, Novartis and Siemens Healthcare will collaborate to enhance the supply of nuclear isotopes used in radiopharmaceuticals. This cooperation will help both sides achieve greater breakthroughs in the medical field. NVS shares rose in premarket trading following the announcement. According to the latest data on Monday, in pre-market trading, NVS shares were up 0.47% to $119.12, showing the market's positive reaction to the deal.