JSE-listed healthcare services provider Life Healthcare Group has announced that all conditions precedent relating to the sale of Life Molecular Imaging (LMI) to Lantheus Holdings have been satisfied.
In a statement, the company says following the successful sale of Alliance Medical Group in 2024, the completion of this transaction will mark a milestone in Life Healthcare’s strategic repositioning as a focused Southern African, diversified and integrated healthcare services provider.
It notes the transaction’s structure allows shareholders to benefit from potential future income streams, with milestone payments linked to performance conditions up to 2034.
Life Healthcare adds that it retains the rights to manufacture, commercialise and distribute LMI products in Africa.
LMI is advancing a critical frontier in modern medicine through the development of novel positron emission tomography tracers for molecular imaging, says Life Healthcare.
The company aims to lead in this field by creating diagnostic tools that enable earlier detection and more precise characterisation of chronic and life-threatening diseases.
Lantheus Holdings, based in Billerica, Massachusetts, is a radiopharmaceutical company with strategic partnerships spanning major industry players, including Bayer, Novartis, Regeneron, GE Healthcare and Siemens Healthineers.
Life Healthcare chief executive Peter Wharton-Hood says: “We are pleased to unlock further value for our shareholders while refocusing our portfolio to grow returns, market share and revenue in the Southern African market.
“We look forward to seeing the progress of LMI under the custodianship of Lantheus, which will provide further benefit to shareholders through future earnouts. Going forward, our commitment remains on executing our strategy to grow, drive and optimise the business. We are fully dedicated to leveraging every opportunity to achieve our objectives and position ourselves for sustained long-term success.”
The company anticipates the net proceeds from the upfront payment to be approximately $200 million (about R3.6 billion).
Life Healthcare says subject to board approval, the group intends to return the net proceeds of the upfront payment to shareholders within 12 months of the completion date.
It is expected that the transaction will be concluded by 21 July.
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