The US radiopharmaceutical company is to acquire the firm from South Africa’s Life Healthcare to boost its commercial Alzheimer’s disease franchise.
Radiopharmaceutical company Lantheus Holdings is to acquire Fareham-based Life Molecular Imaging, the British subsidiary of South Africa’s Life Healthcare, for $350 million (£287.1 million) in cash as well as a possible $400 million in potential earn-out and milestone payments.
“This acquisition aligns with our strategy to drive long-term growth and value creation by investing in high-potential, complementary assets and R&D capabilities to strengthen our radiopharmaceutical leadership,” said Brian Markison, chief executive of Lantheus.
The Massachusetts-based company said that the acquisition is expected to enhance Lantheus’ near and long-term growth profile immediately by boosting its commercial Alzheimer’s disease franchise.
The transaction is expected to be accretive to Lantheus’ adjusted earnings per share within 12 months of close.
Life Healthcare anticipates that net proceeds from the upfront payment, after all settlements, will be around $200 million. The company has said that subject to the necessary approvals, it intends to return the net upfront proceeds to shareholders.
“Life Healthcare is not a natural long-term owner of Life Molecular Imaging. Lantheus, with its extensive experience and expertise in radiopharmaceuticals, is well-positioned to realise the full potential of Life Molecular Imaging’s research and development capabilities and its product pipeline,” said Peter Wharton-Hood, chief executive of Life Healthcare Group.
Expectations are that the deal will complete this year.
