GE HealthCare to Acquire Sofie Biosciences for $945 Million to Secure PET Tracer Manufacturing

What happened

GE HealthCare agreed earlier this week to acquire Sofie Biosciences, a U.S. contract manufacturer of positron emission tomography (PET) radiopharmaceuticals, for $945 million in cash. The deal was announced on Monday, Oct. 5, and BioPharma Dive reported it on Oct. 6.

Sofie will become part of GE HealthCare’s pharmaceutical diagnostics business, known as PDx, when the deal closes, which is expected in the first half of 2027.

Deal and company details

• Price: $945 million in cash.
• Sofie’s network: 15 contract manufacturing sites in the U.S.
• Existing relationship: Sofie already manufactures GE HealthCare’s Flyrcado F18 injection, a cardiac PET imaging agent.
• Independence: Sofie will remain an independent manufacturing partner and continue supplying products for other radiopharmaceutical companies.
• Pipeline rights: GE HealthCare gains U.S. rights to FAPI-74, a pan-cancer PET radiotracer in development. It already holds rights outside the U.S.
• Financial impact: GE HealthCare expects the deal to add to revenue growth and adjusted earnings per share in the first full year of ownership.

“As part of GE HealthCare, Sofie Biosciences is expected to grow in the low double digits,” said Kevin O’Neill, chief executive of PDx.

Why it matters for the sector

PET imaging agents are radioactive and decay quickly, so they must be produced close to where they are used. BTIG analyst Ryan Zimmerman noted that F18-labeled products have a 110-minute half-life and require time-sensitive production and distribution, according to BioPharma Dive. A national manufacturing network is therefore a strategic asset for any company that sells PET tracers in the U.S.

Zimmerman said the added capacity could help reduce bottlenecks that have slowed radiopharmaceutical adoption. As new tracers for heart disease, cancer and neurological conditions reach the market, manufacturing and distribution capacity has become a limiting factor.

The deal is part of a broader wave of radiopharmaceutical dealmaking. In September, Telix agreed to acquire ITM, a German isotope supplier and therapy developer, and Novartis licensed a preclinical radioligand therapy from China’s BoomRay. Owning manufacturing infrastructure is increasingly viewed as a competitive advantage in the field.

Keeping Sofie open to third-party customers preserves its contract manufacturing revenue and avoids disrupting supply for other companies, which can also ease regulatory scrutiny of a transaction that involves a supplier to competitors.

For GE HealthCare, which spun out from General Electric, the pharmaceutical diagnostics business has been a steady contributor alongside its imaging equipment lines. Vertical integration into tracer manufacturing could strengthen the link between its imaging agents and its scanners.

The $945 million price also signals how much strategic value large imaging companies now place on supply chains for radioactive agents. As more diagnostic and therapeutic radiopharmaceuticals compete for limited production capacity, owning manufacturing sites can provide both a revenue stream and assurance of supply for a company’s own products.

Closing in the first half of 2027 implies a review period of several months, which is common for transactions in regulated manufacturing sectors. During that time Sofie will continue operating as an independent supplier.

Radiopharmaceutical supply chains also face constraints in isotope production, transport logistics and specialized staff, and companies that control more of those steps can respond faster to demand.

What to watch

• Regulatory review and closing in the first half of 2027.
• Development progress for FAPI-74 as a pan-cancer imaging agent.
• Adoption of Flyrcado and other F18 products supported by Sofie’s network.
• Further consolidation among radiopharmaceutical manufacturers and isotope suppliers.

Sources: BioPharma Dive

How PET Imaging Works

Positron emission tomography is an imaging technique that shows where a radioactive tracer gathers in the body, revealing biological activity rather than just anatomy.

1. The tracer. A molecule designed to accumulate in a particular tissue or process, such as areas of high sugar use or specific proteins on cancer cells, is labeled with a positron-emitting isotope like fluorine-18.
2. Injection and uptake. The tracer is injected and allowed time to distribute.
3. Positron emission. As the isotope decays, it releases positrons, which almost immediately meet electrons and annihilate, producing two gamma rays traveling in opposite directions.
4. Detection. A ring of detectors in the scanner records pairs of gamma rays arriving at the same time.
5. Reconstruction. Software uses millions of these events to build a three-dimensional image of tracer distribution.

PET is often combined with CT or MRI so physicians can see where the activity sits within the body’s anatomy.

Why a 110-Minute Half-Life Shapes the Business

With a half-life of roughly 110 minutes, a fluorine-18 product loses about half of its radioactivity in under two hours. That creates a demanding daily rhythm:

• Production. Fluorine-18 is typically made in a cyclotron, a particle accelerator, often in the early morning.
• Synthesis. The isotope is attached to the tracer molecule in automated modules, then tested for quality.
• Delivery. Doses are driven or flown to imaging centers within a limited range, scheduled to arrive when patients are ready.
• Timing. If a patient is late or a shipment is delayed, the dose may decay below a usable level.

That is why manufacturing sites must be spread across the country, and why a network of 15 sites is valuable to a company selling tracers nationally.

The Tracers Mentioned in the Deal

Cardiac PET with Flyrcado

Flyrcado, also known as flurpiridaz F 18, is a tracer used in myocardial perfusion imaging, which assesses blood flow to the heart muscle in people being evaluated for coronary artery disease. Its fluorine-18 label allows it to be produced centrally and shipped, unlike some older cardiac PET agents that require an on-site generator or cyclotron.

FAPI-74

FAPI stands for fibroblast activation protein inhibitor. Fibroblast activation protein is found on cancer-associated fibroblasts, supporting cells that surround many types of tumors. Because so many cancers contain these cells, FAPI tracers are being studied as broad, pan-cancer imaging agents. It remains in development.

Questions Readers Ask

Why keep serving competitors after the acquisition?

Third-party customers provide revenue and keep the network’s capacity well used. Continuing to supply them can also help address regulatory concerns about a buyer controlling a supplier to rivals.

Is the radiation from a PET scan significant?

PET involves a small, controlled radiation dose. Patients with questions should discuss risks and benefits with their physicians.

This article is for general information only and is not medical or investment advice.