Pathology Growth Key for Healius Post-Divestment

Healius (ASX: HLS), an Australian network of pathology laboratories and diagnostic centers, announced in September 2024 a binding agreement to divest its Lumus Imaging subsidiary to funds managed by Hong Kong-based private equity firm Affinity Equity Partners. The deal, valued at A$965 million, is structured on a cash, debt, and equipment-lease-free basis and is expected to close in the first quarter of 2025. This strategic divestment marks a significant pivot for Healius, which aims to bolster its balance sheet by reducing debt and sharpening its focus on core pathology services.

Lumus Imaging accounted for 27% of Healius’s revenue in 2024, and its sale is expected to weigh on the company’s top-line performance over the next two years. However, analysts anticipate that investments in its pathology division will drive a return to growth, normalizing operations by 2026.

Despite the sale, Healius remains a dominant player in Australia’s pathology market, supported by its growing bioanalytical laboratory business, Agilex. In 2025, analysts project +6% year-over-year revenue growth in Healius’ pathology division, reaching A$1.3 billion. Agilex, meanwhile, is forecast to continue its robust expansion, with revenues climbing +13% to A$45 million in the same period.