Life Healthcare announces proposed disposal of interest in Life Molecular Imaging (LMI) to Lantheus Holdings Inc (Lantheus)
Life Healthcare Group, through its wholly owned indirect subsidiary in the United Kingdom (UK), Life Medical Group Limited (LMGL), has entered into binding agreements with Lantheus Radiopharmaceuticals UK Limited, a wholly owned subsidiary of Lantheus Holdings Inc (Lantheus) for the sale of 100% of the issued share capital of Life Molecular Imaging Limited and its subsidiaries, collectively known as Life Molecular Imaging ( LMI).
- Binding agreement to sell 100% of the Groups’ interest in Life Molecular Imaging
- Total purchase consideration of up to $750 million (approximately ZAR 13.9 billion)
- Upfront payment of $350 million (approximately ZAR 6.475 billion)
- Additional earnouts totaling a potential further $400 million (approximately ZAR 7.4 billion) linked to future sales milestones
- Estimated net proceeds from the upfront payment of $200 million (approximately ZAR 3.7 billion) from the upfront payment expected to be returned to shareholders
The total purchase consideration of up to $750 million (approximately ZAR 13.9 billion [1]), includes an upfront payment of $350 million and earnouts totalling up to a further $400 million contingent on achieveing future milestones sales of LMI products through to 2034.
Life Healthcare anticipates that net proceeds from the upfront payment, after settling the LMI Management Scheme, Piramal Payment and transaction costs) will be approximately $200 million (around ZAR 3,7 billion1). Subject to the necessary approvals, the Company intends to return the net upfront proceeds to Shareholders.
Peter Wharton-Hood, Chief Executive of Life Healthcare Group, stated, “This proposed transaction presents a significant opportunity for our shareholders to immediately unlock considerable value in LMI. By realising a premium over LMI's estimated value reflected in our share price, shareholders can expect a highly attractive return on this investment. Moreover, this transaction mitigates the execution risks associated with LMI’s business plan by partnering with a credible partner.”
He added, “Life Healthcare is not a natural long-term owner of LMI. Lantheus, with its extensive experience and expertise in radiopharmaceuticalse, is well-positioned to realise the full potential of LMI’s research and development capabilities and its product pipeline. Life Healthcare will continue to participate in the future growth of LMI through the earnouts. In addition Life Healthcare will retain the rights to manaufacture, commercialise and distribute LMI products in Africa.”
The transaction is subject to the fulfillment or waiver of conditions typical for a transaction of this nature, with expected completion during 2025.
Post Completion Outlook:
Upon completion of this transaction, Life Healthcare will focus on consolidating its position as a leading, diversified healthcare provider in southern Africa, backed by a robust integrated care model and further profit-sharing opportunities through the LMI earnouts.
About Life Healthcare Group
Life Healthcare is a people-centered, diversified healthcare organisation listed on the Johannesburg Stock Exchange with over 40 years’ experience in the South African private healthcare sector. It currently operates 64 healthcare facilities in southern Africa. Services include acute hospital care, acute physical rehabilitation, acute mental healthcare, renal dialysis, oncology, diagnostic and molecular imaging, and health risk management services which include occupational health and wellness services. The Group also owns Life Molecular Imaging, a radiopharmaceutical business dedicated to developing and globally commercialising innovative molecular imaging agents for use in PET-CT diagnostics to detect specific diseases.
About Life Molecular Imaging
LMI is an integrated research and development radiopharmaceutical company focused on creating innovative molecular imaging agents. Its main product NeuraCeq®, an approved radiopharmaceutical for detecting beta-amyloid deposits in the brain, is available through manufacturing sites in the US, EU and UK and globally through additional manufacturing sites from license partners. Visit: https://life-mi.com/
About Lantheus Holdings Incorporated
Lantheus is the leading radiopharmaceutical-focused company, delivering life-changing science to enable clinicians to Find, Fight and Follow disease to deliver better patient outcomes. Headquartered in Massachusetts with offices in Canada and Sweden, Lantheus has been providing radiopharmaceutical solutions for more than 65 years. For more information, visit www.lantheus.com.