Shares in healthcare group Johnson & Johnson (JNJ) were higher today on reports that it could be lining up a $2.5 billion bid for tumor zapping business HistoSonics. However, it faces competition from a number of major healthcare hitters.
Several Suitors for Tumor Zapper
According to a report in the Financial Times, Michigan-based HistoSonics has received a number of takeover bids from “several suitors.”
One person told the FT that HistoSonics, which has developed non-invasive sonic beams to treat the most aggressive form of liver cancer, is seeking a valuation of over $2.5 billion.
It is understood that JNJ, Medtronic (MDT) and GE Healthcare (GEHC) are evaluating the business. Johnson & Johnson may hold an advantage given that it already holds a stake in HistoSonics through its venture capital arm.
Sale Could Be Close
According to the FT, a sale may not be too far away with final bids expected in the next few weeks. However, those close to the process warned that a deal may fall apart and that the current owners of HistoSonics may decide to hold on to the business.
Another alternative for HistoSonics could be a public listing, but a sale is more likely given recent market volatility.
The US Food and Drug Administration approved its technology to treat liver cancer in 2023, and it is also being studied in kidney and pancreatic cancer. Its revenues are expected to reach $100 million this year and $200 million next year.
The Global Liver Cancer treatment market is forecast to soar from $3.54 billion in 2024 to $8.88 billion by 2031.
What are the Best Healthcare & Medical Stocks?
We have rounded up the best Healthcare & Medical stocks using our TipRanks comparison tool.
