SA's second-biggest private hospital group, Life Healthcare, has reached a $350m upfront payment deal for its interest in diagnostics business Life Molecular Imaging (LMI).
The deal includes potential further earn out payments of up to R7.4bn linked to milestones of future sales of LMI products up to 2034 and also includes the retention of a right to elect to manufacture, commercialise and distribute LMI products in Africa.
The hospital operator said the sale to Massachusetts-headquartered Lantheus will help LMI reach its full potential, while also reducing its own complexity, reports News24.
Life Healthcare had acquired LMI in 2018 to increase utilisation of cyclotrons in Europe, with further upside for the manufacturing, distribution and sales of radio-pharmaceuticals in other parts in the world.
At the date of acquisition in June 2018, LMI had one internationally approved diagnostic radiopharmaceutical – NeuraCeq – and the group invested to commercialise this product and further develop its pipeline of novel radioisotope imaging agents.
These are used in conjunction with imaging devices to detect cancers or other conditions, with NeuraCeq used to help diagnose Alzheimer’s disease.
The disposal also follows that of UK diagnostics business Alliance Medical. Life Healthcare had netted R10.2bn from the sale and paid an R8.8bn special dividend in April last year.
Life Healthcare currently operates 71 healthcare facilities (9 202 beds) in South Africa and one facility in Botswana.
Lantheus has offices in Canada and Sweden and has been providing radiopharmaceutical solutions for more than 65 years.
The transaction is expected to conclude in the second half of 2025.
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