Over 90 Total Lots Up For Auction at One Location - WA 04/08

Spinoff will make GE Healthcare more adaptable to the market: analysis

by John R. Fischer, Senior Reporter | November 19, 2021
Artificial Intelligence Business Affairs CT MRI Ultrasound X-Ray
GE Healthcare will be spun-off as a separate company in 2023
Following its spin off from General Electric, GE Healthcare is poised to be more nimble and able to adapt to changes in the markets it serves.

The company especially sees great potential in its fast-growing, diagnostic imaging equipment market with the growing influence of AI and more competition from startups and established players. Among the different demands it expects to be able to better address are the needs of aging populations, access to healthcare services in emerging economies, new technologies and the COVID-19 pandemic, according to The Wall Street Journal.

“GE Healthcare will be more nimble because they are no longer hostage to the complexity of decision-making that comes with a company like GE,” Michael Abrams, managing partner of health consulting firm Numerof & Associates, told The Journal.
stats
DOTmed text ad

Reveal Mobi Pro now available for sale in the US

Reveal Mobi Pro integrates the Reveal 35C detector with SpectralDR technology into a modern mobile X-ray solution. Mobi Pro allows for simultaneous acquisition of conventional & dual-energy images with a single exposure. Contact us for a demo at no cost.

stats
GE announced earlier this month its intention to spin off its healthcare division as a separate business. The decision was motivated by a desire to reduce debt, simplify the company’s business and improve its share price. GE Healthcare will be spun off in early 2023, with GE retaining a 19.9% stake in the new firm. GE’s renewable energy and power division will also be spun off in early 2024, with the main company singularly focusing on its aviation business.

Its confidence in its diagnostic imaging unit stems from higher demands for MR and X-ray systems to diagnose a growing number of age-related diseases and conditions brought on by sedentary lifestyles. Telemedicine has also bolstered the need for handheld imaging devices like ultrasound to monitor patients outside hospitals and the transmission of larger data sets over the internet.

As a stand-alone company, GE Healthcare will be able to move faster and have more capital to acquire companies and technologies. It accounted for about 23% of the whole company’s $79.6 billion in revenue last year, making it the most profitable division then, reports Modern Healthcare.

Currently, GE is the world leader in the global market for medical imaging, which was worth around $22 billion in sales in 2020, according to Signify Research. It holds around a 26% share here, compared to Siemens’ 21% and Philips’ 17% stakes. And with more than four million installed units worldwide, it was able to rack up $18 billion in revenue last year.

You Must Be Logged In To Post A Comment