07.20.22
Rank: #27 (Last year: #24)
¥480.3 Billion ($4.17 Billion)
Prior Fiscal: ¥436 Billion
Percentage Change: +10.2%
R&D Expenditure: ¥287.3 Billion
Best FY21 Quarter: Q4 ¥128.5B
Latest Quarter: Q1 ¥118.2B
No. of Employees: 184,034 (total)
Global Headquarters: Tustin, Calif.
KEY EXECUTIVES:
Fujio Mitarai, Chairman and CEO, Canon Global
Toshio Tanaka, Exec. VP and CFO, Canon Global
Kazuto Ogawa, President and CEO, Canon U.S.A. Inc.
Toshio Takiguchi, Head of Medical Group, President and CEO, Canon Medical Systems Corporation
Yuji Hamada, President and CEO, Canon Medical Systems USA Inc.
John Patterson, Sr. VP, CFO, and Treasurer, Canon Medical Systems USA Inc.
Tim Peeler, VP, Service Operations, Canon Medical Systems USA Inc.
John Serovich, VP, Ultrasound/X-Ray Business Unit, Canon Medical Systems USA Inc.
Peace and harmony.
These two words have been bandied about for centuries as an ideal goal for all humankind. They’ve also been tossed around corporate boardrooms of late as the means to a very prosperous end.
With global troubles like climate change, armed conflicts, and racial tensions impacting their bottom line, companies increasingly are embracing a societal moral duty. Multinational organizations realize the money-making tunnel vision of yesteryear no longer guarantees success; rather, good corporate citizenship is key to long-term prosperity.
Corporate social responsibility (CSR) is standard practice nowadays at most Fortune 500 companies. Conglomerates like Johnson & Johnson, Medtronic, Abbott, Philips, Stryker, Zimmer Biomet, Canon, and others routinely craft and/or engage in community improvement efforts or charity work.
Zimmer Biomet, for example, recently created an independent non-profit structure for Movement is Life Inc., a philanthropic, multi-disciplinary coalition it founded in 2010 to reduce musculoskeletal health disparities in minority populations. The coalition’s new non-profit structure will help Zimmer Biomet expand upon awareness programs that focus on early intervention, education, behavior change, and advocacy for chronic disease management.
Similarly, J&J created the Johnson & Johnson STEM Scholars Programme last year in the United Kingdom to provide financial support to Black students pursuing a STEM education. The five-year effort supports 25 students for two years, and a 10-student cohort for three years during their university tenure.
Canon, meanwhile, is helping young photographers, printers, and filmmakers in Africa through its Miraisha Programme, and improving both eye care and the overall quality of life in India. The company’s vision centers aim to prevent and/or treat cataracts, while its decade-old “Adopt a Village” venture provides community development assistance to underprivileged areas.
ANALYST INSIGHTS: Canon Medical has leapt forward in the last two years, as they have focused on strong partnerships throughout the pandemic that will better their future. They have been smart, strategic, and partnered with differentiated companies in order to increase their breadth of offerings, which should continue to help them expand into the future.
Canon’s CSR programs are guided by its “kyosei” corporate philosophy—i.e., a “spirit of cooperation” in which individuals and organizations work together for the common good.
“A concise definition of [kyosei] would be ‘living and working together for the common good,’ but our definition is broader: ‘All people, regardless of race, religion, or culture, harmoniously living and working together into the future,’” Canon states on its global website. “Behind Canon’s 80-year history...lies its corporate DNA: a respect for humanity, an emphasis on technology, and an enterprising spirit that the company has consistently passed on since its foundation. Canon is committed to passing its corporate DNA on to future generations to ensure the company grows for another 100, or even 200, years.”
Such long-term prosperity certainly seems possible, given Canon’s most recent fiscal year performance. Total net sales swelled 11.2% in 2021 to ¥35.13 trillion, and operating profit more than doubled, reaching ¥281.9 billion. Canon attributed the growth to its pandemic recovery and business portfolio transformation (four new core reporting segments).
Canon scored gains in all geographic areas in FY21 (year ended Dec. 31), though its domestic sum paled in comparison to its overseas tallies. Improved computed tomography (CT) and diagnostic ultrasound system sales lifted Japanese revenue 3% to ¥830.3 billion, while American, European, and Asian/Oceanian proceeds benefitted from recovering product demand. Europe’s sales expanded 12.5% to ¥894.8 billion, Americas’ revenue mushroomed 13.7% to ¥968.8 billion, and Asia/Oceania’s sales surged 16.1% to ¥819.2 billion, according to Canon’s 2021 annual report.
Rebounding product demand also helped boost sales in Canon’s four business segments, though sporadic coronavirus caseload spikes and semiconductor chip shortages impacted results in the Printing and Imaging Business units, respectively.
Printing posted the lowest growth rate (7.4%) but the highest sales total (¥1.9 trillion), while Imaging amassed the highest gain (20.7% to ¥653.5 billion). Following close behind was Industrial and Others, which grew proceeds 18.2% to ¥545.7 billion, and Medical, which bolstered sales 10.2% to a record ¥480.3 billion.
Canon executives attribute Medical’s historic high to “returning routine exams,” but resurgent coronavirus infections, a semiconductor chip shortage, and shipping container backlogs stymied imaging systems production and installation throughout the year. CT and diagnostic ultrasound systems sales were amplified by recovering North American demand and “opportunities” within government-supported medical institutions in Japan.
Augmenting those “opportunities” was a bevy of product clearances and debuts. Canon Medical Systems USA Inc. expanded its CT portfolio with an acquisition and three U.S. Food and Drug Administration (FDA) clearances throughout 2021; the first clearance—in January—went to the Aquilion Exceed LB CT system, an artificial intelligence-powered machine designed to improve radiation therapy planning and delivery.
Aquilion Exceed aims to facilitate workflow while maintaining image quality and reproducibility. The system’s features include a 90-cm bore (the industry’s largest bore opening); 90-cm extended-to-edge field-of-view reconstruction; 4-cm wide detector coverage; AI-powered contouring, using Canon Medical Systems’ Advanced Intelligent Clear-IQ Engine deep learning reconstruction technology; and flexibility for handling bariatric patients as well as challenging patient positioning.
Three months after authorizing Aquilion Exceed, the FDA cleared Canon Medical Systems’ Deep Learning Spectral CT for use in cardiovascular applications. Available on the company’s Aquilion ONE/PRISM Edition CT system, the Deep Learning Spectral CT can capture whole-heart spectral images in one beat, by virtue of a 16 cm wide area detector, 0.275 second whole-heart acquisition with rapid kVp switching, and Deep Learning Spectral Reconstruction.
Designed for deep intelligence, the Aquilion ONE/PRISM Edition integrates AI technology to maximize conventional and spectral CT capabilities while providing deep clinical insights to assist physicians in making more informed decisions. Its fully integrated end-to-end workflow is easy to use and can be incorporated into routine protocols.
Canon Medical Systems’ final regulatory consent last year occurred in June with 510(k) clearance of the company’s Deep Learning Reconstruction (DLR) technology on its Cartesion Prime Digital PET/CT system. The Cartesion Prime with AiCE (Advanced intelligent Clear-IQ Engine) consistently and routinely produces high-quality images, thereby enabling better image quality and lesion visualization.
AiCE was trained using vast amounts of high-quality data, and features a deep learning neural network that can reduce noise and boost signal to quickly deliver, clear and distinct images, further opening doors for advancements in molecular imaging. AiCE on the Cartesion Prime Digital PET/CT can provide fast exams at a lower dose with better image quality than traditionally acquired during both the PET and CT acquisitions, according to Canon Medical Systems.
Ninety days after the Cartesion Prime clearance, Canon acquired Canadian chipmaker Redlen Technologies for ¥30 billion ($270 million) in a deal that will allow the company to develop CT scanners that reduce radiation exposure.
In addition to expanding its CT lineup, Canon Medical Systems bolstered its AI and cardiac imaging prowess last year. In April, the company equipped its Vantage Galan 3T MR System with AiCE DLR technology, expanding its clinical indications from FDA-cleared brain and knee scans to 96% of all procedures, including prostate, shoulder, all joints, cardiac, pelvis, abdomen, and spine.
Then in November, the company debuted new AI innovation brand Altivity, and Vantage Fortain, an advanced productivity, open-bore 1.5T MRI system featuring enhanced workflow solutions, image enhancement, and AiCE DLR technology for liver, prostate, and whole spine scanning.
Canon enhanced its cardiac imaging capabilities by partnering with Cleery Health and tweaking its Aquilion ONE/PRISM system. The Cleery collaboration integrates Canon’s AI-powered CT technology with Cleerly’s digital pathway solution for coronary artery disease analysis; the pairing is intended to identify heart disease as early as possible.
The Aquilion tweak adds Precise IQ Engine (PIQE) DLR technology to the scanner’s ONE/PRISM edition. “We’ve taken the Aquilion ONE/PRISM Edition to the next level of deep intelligence with PIQE,” Hisashi Tachizaki, vice president and general manager of CT System Division at Canon Medical Systems Corporation, said last fall. “Canon Medical continues to push what’s possible using AI. With PIQE, we are now able to further reveal essential diagnostic information for cardiac CT scans...”
¥480.3 Billion ($4.17 Billion)
Prior Fiscal: ¥436 Billion
Percentage Change: +10.2%
R&D Expenditure: ¥287.3 Billion
Best FY21 Quarter: Q4 ¥128.5B
Latest Quarter: Q1 ¥118.2B
No. of Employees: 184,034 (total)
Global Headquarters: Tustin, Calif.
KEY EXECUTIVES:
Fujio Mitarai, Chairman and CEO, Canon Global
Toshio Tanaka, Exec. VP and CFO, Canon Global
Kazuto Ogawa, President and CEO, Canon U.S.A. Inc.
Toshio Takiguchi, Head of Medical Group, President and CEO, Canon Medical Systems Corporation
Yuji Hamada, President and CEO, Canon Medical Systems USA Inc.
John Patterson, Sr. VP, CFO, and Treasurer, Canon Medical Systems USA Inc.
Tim Peeler, VP, Service Operations, Canon Medical Systems USA Inc.
John Serovich, VP, Ultrasound/X-Ray Business Unit, Canon Medical Systems USA Inc.
Peace and harmony.
These two words have been bandied about for centuries as an ideal goal for all humankind. They’ve also been tossed around corporate boardrooms of late as the means to a very prosperous end.
With global troubles like climate change, armed conflicts, and racial tensions impacting their bottom line, companies increasingly are embracing a societal moral duty. Multinational organizations realize the money-making tunnel vision of yesteryear no longer guarantees success; rather, good corporate citizenship is key to long-term prosperity.
Corporate social responsibility (CSR) is standard practice nowadays at most Fortune 500 companies. Conglomerates like Johnson & Johnson, Medtronic, Abbott, Philips, Stryker, Zimmer Biomet, Canon, and others routinely craft and/or engage in community improvement efforts or charity work.
Zimmer Biomet, for example, recently created an independent non-profit structure for Movement is Life Inc., a philanthropic, multi-disciplinary coalition it founded in 2010 to reduce musculoskeletal health disparities in minority populations. The coalition’s new non-profit structure will help Zimmer Biomet expand upon awareness programs that focus on early intervention, education, behavior change, and advocacy for chronic disease management.
Similarly, J&J created the Johnson & Johnson STEM Scholars Programme last year in the United Kingdom to provide financial support to Black students pursuing a STEM education. The five-year effort supports 25 students for two years, and a 10-student cohort for three years during their university tenure.
Canon, meanwhile, is helping young photographers, printers, and filmmakers in Africa through its Miraisha Programme, and improving both eye care and the overall quality of life in India. The company’s vision centers aim to prevent and/or treat cataracts, while its decade-old “Adopt a Village” venture provides community development assistance to underprivileged areas.
ANALYST INSIGHTS: Canon Medical has leapt forward in the last two years, as they have focused on strong partnerships throughout the pandemic that will better their future. They have been smart, strategic, and partnered with differentiated companies in order to increase their breadth of offerings, which should continue to help them expand into the future.
— Marissa Fayer, CEO, HERhealthEQ
Canon’s CSR programs are guided by its “kyosei” corporate philosophy—i.e., a “spirit of cooperation” in which individuals and organizations work together for the common good.
“A concise definition of [kyosei] would be ‘living and working together for the common good,’ but our definition is broader: ‘All people, regardless of race, religion, or culture, harmoniously living and working together into the future,’” Canon states on its global website. “Behind Canon’s 80-year history...lies its corporate DNA: a respect for humanity, an emphasis on technology, and an enterprising spirit that the company has consistently passed on since its foundation. Canon is committed to passing its corporate DNA on to future generations to ensure the company grows for another 100, or even 200, years.”
Such long-term prosperity certainly seems possible, given Canon’s most recent fiscal year performance. Total net sales swelled 11.2% in 2021 to ¥35.13 trillion, and operating profit more than doubled, reaching ¥281.9 billion. Canon attributed the growth to its pandemic recovery and business portfolio transformation (four new core reporting segments).
Canon scored gains in all geographic areas in FY21 (year ended Dec. 31), though its domestic sum paled in comparison to its overseas tallies. Improved computed tomography (CT) and diagnostic ultrasound system sales lifted Japanese revenue 3% to ¥830.3 billion, while American, European, and Asian/Oceanian proceeds benefitted from recovering product demand. Europe’s sales expanded 12.5% to ¥894.8 billion, Americas’ revenue mushroomed 13.7% to ¥968.8 billion, and Asia/Oceania’s sales surged 16.1% to ¥819.2 billion, according to Canon’s 2021 annual report.
Rebounding product demand also helped boost sales in Canon’s four business segments, though sporadic coronavirus caseload spikes and semiconductor chip shortages impacted results in the Printing and Imaging Business units, respectively.
Printing posted the lowest growth rate (7.4%) but the highest sales total (¥1.9 trillion), while Imaging amassed the highest gain (20.7% to ¥653.5 billion). Following close behind was Industrial and Others, which grew proceeds 18.2% to ¥545.7 billion, and Medical, which bolstered sales 10.2% to a record ¥480.3 billion.
Canon executives attribute Medical’s historic high to “returning routine exams,” but resurgent coronavirus infections, a semiconductor chip shortage, and shipping container backlogs stymied imaging systems production and installation throughout the year. CT and diagnostic ultrasound systems sales were amplified by recovering North American demand and “opportunities” within government-supported medical institutions in Japan.
Augmenting those “opportunities” was a bevy of product clearances and debuts. Canon Medical Systems USA Inc. expanded its CT portfolio with an acquisition and three U.S. Food and Drug Administration (FDA) clearances throughout 2021; the first clearance—in January—went to the Aquilion Exceed LB CT system, an artificial intelligence-powered machine designed to improve radiation therapy planning and delivery.
Aquilion Exceed aims to facilitate workflow while maintaining image quality and reproducibility. The system’s features include a 90-cm bore (the industry’s largest bore opening); 90-cm extended-to-edge field-of-view reconstruction; 4-cm wide detector coverage; AI-powered contouring, using Canon Medical Systems’ Advanced Intelligent Clear-IQ Engine deep learning reconstruction technology; and flexibility for handling bariatric patients as well as challenging patient positioning.
Three months after authorizing Aquilion Exceed, the FDA cleared Canon Medical Systems’ Deep Learning Spectral CT for use in cardiovascular applications. Available on the company’s Aquilion ONE/PRISM Edition CT system, the Deep Learning Spectral CT can capture whole-heart spectral images in one beat, by virtue of a 16 cm wide area detector, 0.275 second whole-heart acquisition with rapid kVp switching, and Deep Learning Spectral Reconstruction.
Designed for deep intelligence, the Aquilion ONE/PRISM Edition integrates AI technology to maximize conventional and spectral CT capabilities while providing deep clinical insights to assist physicians in making more informed decisions. Its fully integrated end-to-end workflow is easy to use and can be incorporated into routine protocols.
Canon Medical Systems’ final regulatory consent last year occurred in June with 510(k) clearance of the company’s Deep Learning Reconstruction (DLR) technology on its Cartesion Prime Digital PET/CT system. The Cartesion Prime with AiCE (Advanced intelligent Clear-IQ Engine) consistently and routinely produces high-quality images, thereby enabling better image quality and lesion visualization.
AiCE was trained using vast amounts of high-quality data, and features a deep learning neural network that can reduce noise and boost signal to quickly deliver, clear and distinct images, further opening doors for advancements in molecular imaging. AiCE on the Cartesion Prime Digital PET/CT can provide fast exams at a lower dose with better image quality than traditionally acquired during both the PET and CT acquisitions, according to Canon Medical Systems.
Ninety days after the Cartesion Prime clearance, Canon acquired Canadian chipmaker Redlen Technologies for ¥30 billion ($270 million) in a deal that will allow the company to develop CT scanners that reduce radiation exposure.
In addition to expanding its CT lineup, Canon Medical Systems bolstered its AI and cardiac imaging prowess last year. In April, the company equipped its Vantage Galan 3T MR System with AiCE DLR technology, expanding its clinical indications from FDA-cleared brain and knee scans to 96% of all procedures, including prostate, shoulder, all joints, cardiac, pelvis, abdomen, and spine.
Then in November, the company debuted new AI innovation brand Altivity, and Vantage Fortain, an advanced productivity, open-bore 1.5T MRI system featuring enhanced workflow solutions, image enhancement, and AiCE DLR technology for liver, prostate, and whole spine scanning.
Canon enhanced its cardiac imaging capabilities by partnering with Cleery Health and tweaking its Aquilion ONE/PRISM system. The Cleery collaboration integrates Canon’s AI-powered CT technology with Cleerly’s digital pathway solution for coronary artery disease analysis; the pairing is intended to identify heart disease as early as possible.
The Aquilion tweak adds Precise IQ Engine (PIQE) DLR technology to the scanner’s ONE/PRISM edition. “We’ve taken the Aquilion ONE/PRISM Edition to the next level of deep intelligence with PIQE,” Hisashi Tachizaki, vice president and general manager of CT System Division at Canon Medical Systems Corporation, said last fall. “Canon Medical continues to push what’s possible using AI. With PIQE, we are now able to further reveal essential diagnostic information for cardiac CT scans...”