GE Drops on Swedish Hook-Up

GE (NYSE:GE) said its health-care subsidiary is acquiring Swedish start-up Prismatic Sensors AB, bolstering its key medical imaging business.

Prismatic Sensors AB was founded in 2012 as a spin-off from KTH Royal Institute of Technology in Stockholm, Sweden. It makes detectors for CT imaging.

GE Healthcare said the start-up’s technology offers sharper images with fewer doses of radiation to patients. It has the potential to be a “substantial step forward” in detecting cancer, heart disorders and other diseases, the company said, declining to disclose the terms of the deal.

The company said the acquisition fits within its mission to help medical workers deliver more precise diagnoses and detect diseases earlier.

The technology could eventually be used to detect cancers at an earlier stage, GE Healthcare CEO Kieran Murphy told the media, adding the company has had a stake in the start-up since 2017. "Clinically, it’s a huge leap forward. This is the cutting edge."

GE Healthcare is already a dominant player in hospital and lab equipment and is a growing force in medical records, health-care software and has expanded its mark on gene therapy research. In 2019, GE Healthcare got clearance from the Food and Drug Administration for a new artificial intelligence-powered X-ray device that the company said reduced the time to detect a collapsed lung in patients.

The unit generated $4.5 billion in revenue in the third quarter alone.

Parent GE kicked off Friday trading down six cents to $9.60.