07.20.23
Rank: #29 (Last year: #27)
¥513.3 Billion ($3.89 Billion)
Prior Fiscal: ¥480.4 Billion
Percentage Change: +6.9%
R&D Expenditure: ¥306.7B (total)
Best FY22 Quarter: Q4 ¥150.8B
Latest Quarter: Q1 ¥131.1B
No. of Employees: 180,775 (total)
Global Headquarters: Ohta-ku, Tokyo, Japan
KEY EXECUTIVES:
Fujio Mitarai, Chairman & CEO, Canon Inc.
Toshizo Tanaka, Exec. VP & CFO, Canon Inc.
Toshio Takiguchi, Head of Medical Group; President & CEO, Canon Medical Systems Corporation
Yuji Hamada, President & CEO, Canon Medical Systems USA
Nearing the end of 2022, Canon made a somewhat unusual (or at least uncommon) announcement. Companies often make news when acquiring a firm and bringing it aboard, or shedding itself of a division to be sold or become a standalone firm. Much less often, however, does a company establish a new business from scratch under the full control of the parent organization. Surprisingly, that’s just what Canon did. In November, the future for Canon Medical was revealed in the formation of Canon Healthcare USA.
This venture for the Japan-headquartered firm was estimated to require a $300 million investment. The goal of the endeavor was said to be an effort to strengthen the organization’s presence in the American medical industry, which “is extremely influential on the global market.” Cleveland was the primary consideration to serve as the home base for the new venture due to it being a healthcare hub.
As part of the plan, some marketing operations (specifically, upstream marketing) would transfer to Canon’s Global Marketing Center anticipated to have been established at the start of 2023. This move would enable the company to establish a network with medical institutions addressing healthcare concerns at the point of care so as to gain a better understanding of the market. That information would then be leveraged to develop new products and solutions to address the needs of the medical marketplace.
Another aspect of this plan would see the transfer of several products and services from Canon Medical Systems USA to Canon Healthcare USA. Combined with downstream marketing (i.e., directly communicating with customers), the firm could focus efforts on increasing market share in medical diagnostic systems within the U.S.
Still another part of this reorganization would see Quality Electrodynamics (QED), which Canon acquired in 2019, placed under the Canon Healthcare USA umbrella. QED develops and manufactures MRI components and could be used to help increase coordination between Canon’s system and component businesses.
The company stated the establishment of Canon Healthcare was to take place in January 2023, but no formal announcement has been made since. It was also unclear exactly which products would join the new entity, however, the company continued to roll out several new offerings during the year that could be put under the new banner.
One such offering, unveiled in June, provided a Cybersecurity Health Score and Utilization Management Dashboard to 360° Connect customers. The dashboard includes data visibility and analysis, allowing radiology teams to optimize workflow, increase performance, and make better-informed decisions throughout the patient’s examination process. The cybersecurity tool implements a high-level calculation that evaluates the risk to the facility by providing both the vulnerability and threat vector of its Canon assets.
Also during the summer, the firm launched its CXDI-Pro series of wireless digital radiography devices, including the CXDI-703C Wireless sensor unit, in markets outside of Japan. The CXDI-Pro series maintains the same basic functionality of its predecessor model, while realizing an improved body design and circuit architecture that facilitates greater ease-of-use and reduced workload for medical professionals.
In a partnership agreement, Canon has integrated Glassbeam’s Clinsights Utilization Analytics into its analytics suite. Clinsights is a cloud-based, vendor-agnostic solution that analyzes DICOM and HL7 data for every exam every day, and can scale to include all OEM solutions and imaging modalities in a single pane of glass. Canon Secure Analytics provides a turnkey solution including all hardware and software with installation.
In celebration of the 30th anniversary of Hybrid Angio-CT technology, Canon announced it had integrated the world’s first Deep Learning Spectral CT reconstruction and HD 76 high-definition imaging. Deep Learning Spectral CT reconstruction offers automatically-generated monochromatic images, material-specific reconstruction, and iodine maps—requiring no additional effort or training for technologists. In addition, the HD 76 high-definition detector provides more than twice the spatial resolution of conventional flat panel detectors, helping clinicians see fine details in complex interventional procedures.
Canon Medical Systems USA launched SP Configurations, Orian SP, and Galan SP in late November. These offerings feature AI-driven workflow solutions, an intelligent Ceiling Camera, and the Tablet UX mobile interface. In addition, SP configurations come standard with powerful 45 mT/m maximum gradient peaks and 200 mT/m/ms slew rates, the Fast 3D acceleration package, and ForeSee View automation—a real-time preview of the scan plan.
Joining this array of new products are also the portfolios that came via two acquisitions that took place during the latest fiscal. The company purchased Nordisk Røntgen Teknik A/S (NRT), a Danish company with advanced technology for the development and manufacture of diagnostic X-ray systems. According to Canon, NRT’s strength lies in its product portfolio, focusing on user-friendly, high-end systems and constant innovation with medical staff and patients in mind. The terms of the deal were not revealed.
Then, in the middle of the 2022 summer, Canon’s U.S. medical subsidiary declared it was buying NXC Imaging, a medical imaging equipment distributor and service provider headquartered in Minneapolis, Minn. The terms of this agreement were also not shared, but it did wrap within a month’s time following the initial announcement.
“We have partnered with NXC Imaging for over 33 years,” said Yuji Hamada, CEO and president of Canon Medical Systems USA Inc. “Our successful partnership has thrived due to Canon’s innovative technology and trusting collaboration with NXC’s entrepreneurial company culture. The results of our partnership have demonstrated strong results over the past 15 years in the Upper Midwest region.”
To showcase such a broad, diagnostic imaging portfolio, the organization embarked on its first “Truck Tour,” traveling across the U.S. to bring their solutions directly to hospitals and local healthcare providers. The road trip was conceived to provide a hands-on experience to create stronger community engagement throughout the year. The 50-city mobile tour kicked off in Canon Medical Systems USA’s Tustin, Calif., headquarters.
“Providing in-person experiences with current and new customers is key for us as a company. It’s a vital opportunity to connect, ask pressing questions in a face-to-face setting, and to learn more about better servicing their needs,” said David Hashimoto, vice president of Marketing and Sales Strategy. “We’re allowing unprecedented access to our technologies to better guide healthcare professionals with the essential information needed to make important decisions about their patients and business.”
In 2023, the tour expanded with the addition of a second truck and unique East and West Coast routes.
All of this effort, from new product introductions to the unique Truck Tour, was done to help continue to drive growth, which the firm has enjoyed in recent years. During its latest fiscal, the Medical segment reported revenue of ¥513.3 billion, which reflected a rise of 6.9% over the previous year. The 12-month period previous to that, it posted a 10.2% gain, so the organization seems to be seeking to continue that trend.
¥513.3 Billion ($3.89 Billion)
Prior Fiscal: ¥480.4 Billion
Percentage Change: +6.9%
R&D Expenditure: ¥306.7B (total)
Best FY22 Quarter: Q4 ¥150.8B
Latest Quarter: Q1 ¥131.1B
No. of Employees: 180,775 (total)
Global Headquarters: Ohta-ku, Tokyo, Japan
KEY EXECUTIVES:
Fujio Mitarai, Chairman & CEO, Canon Inc.
Toshizo Tanaka, Exec. VP & CFO, Canon Inc.
Toshio Takiguchi, Head of Medical Group; President & CEO, Canon Medical Systems Corporation
Yuji Hamada, President & CEO, Canon Medical Systems USA
Nearing the end of 2022, Canon made a somewhat unusual (or at least uncommon) announcement. Companies often make news when acquiring a firm and bringing it aboard, or shedding itself of a division to be sold or become a standalone firm. Much less often, however, does a company establish a new business from scratch under the full control of the parent organization. Surprisingly, that’s just what Canon did. In November, the future for Canon Medical was revealed in the formation of Canon Healthcare USA.
This venture for the Japan-headquartered firm was estimated to require a $300 million investment. The goal of the endeavor was said to be an effort to strengthen the organization’s presence in the American medical industry, which “is extremely influential on the global market.” Cleveland was the primary consideration to serve as the home base for the new venture due to it being a healthcare hub.
As part of the plan, some marketing operations (specifically, upstream marketing) would transfer to Canon’s Global Marketing Center anticipated to have been established at the start of 2023. This move would enable the company to establish a network with medical institutions addressing healthcare concerns at the point of care so as to gain a better understanding of the market. That information would then be leveraged to develop new products and solutions to address the needs of the medical marketplace.
Another aspect of this plan would see the transfer of several products and services from Canon Medical Systems USA to Canon Healthcare USA. Combined with downstream marketing (i.e., directly communicating with customers), the firm could focus efforts on increasing market share in medical diagnostic systems within the U.S.
Still another part of this reorganization would see Quality Electrodynamics (QED), which Canon acquired in 2019, placed under the Canon Healthcare USA umbrella. QED develops and manufactures MRI components and could be used to help increase coordination between Canon’s system and component businesses.
The company stated the establishment of Canon Healthcare was to take place in January 2023, but no formal announcement has been made since. It was also unclear exactly which products would join the new entity, however, the company continued to roll out several new offerings during the year that could be put under the new banner.
One such offering, unveiled in June, provided a Cybersecurity Health Score and Utilization Management Dashboard to 360° Connect customers. The dashboard includes data visibility and analysis, allowing radiology teams to optimize workflow, increase performance, and make better-informed decisions throughout the patient’s examination process. The cybersecurity tool implements a high-level calculation that evaluates the risk to the facility by providing both the vulnerability and threat vector of its Canon assets.
Also during the summer, the firm launched its CXDI-Pro series of wireless digital radiography devices, including the CXDI-703C Wireless sensor unit, in markets outside of Japan. The CXDI-Pro series maintains the same basic functionality of its predecessor model, while realizing an improved body design and circuit architecture that facilitates greater ease-of-use and reduced workload for medical professionals.
In a partnership agreement, Canon has integrated Glassbeam’s Clinsights Utilization Analytics into its analytics suite. Clinsights is a cloud-based, vendor-agnostic solution that analyzes DICOM and HL7 data for every exam every day, and can scale to include all OEM solutions and imaging modalities in a single pane of glass. Canon Secure Analytics provides a turnkey solution including all hardware and software with installation.
In celebration of the 30th anniversary of Hybrid Angio-CT technology, Canon announced it had integrated the world’s first Deep Learning Spectral CT reconstruction and HD 76 high-definition imaging. Deep Learning Spectral CT reconstruction offers automatically-generated monochromatic images, material-specific reconstruction, and iodine maps—requiring no additional effort or training for technologists. In addition, the HD 76 high-definition detector provides more than twice the spatial resolution of conventional flat panel detectors, helping clinicians see fine details in complex interventional procedures.
Canon Medical Systems USA launched SP Configurations, Orian SP, and Galan SP in late November. These offerings feature AI-driven workflow solutions, an intelligent Ceiling Camera, and the Tablet UX mobile interface. In addition, SP configurations come standard with powerful 45 mT/m maximum gradient peaks and 200 mT/m/ms slew rates, the Fast 3D acceleration package, and ForeSee View automation—a real-time preview of the scan plan.
Joining this array of new products are also the portfolios that came via two acquisitions that took place during the latest fiscal. The company purchased Nordisk Røntgen Teknik A/S (NRT), a Danish company with advanced technology for the development and manufacture of diagnostic X-ray systems. According to Canon, NRT’s strength lies in its product portfolio, focusing on user-friendly, high-end systems and constant innovation with medical staff and patients in mind. The terms of the deal were not revealed.
Then, in the middle of the 2022 summer, Canon’s U.S. medical subsidiary declared it was buying NXC Imaging, a medical imaging equipment distributor and service provider headquartered in Minneapolis, Minn. The terms of this agreement were also not shared, but it did wrap within a month’s time following the initial announcement.
“We have partnered with NXC Imaging for over 33 years,” said Yuji Hamada, CEO and president of Canon Medical Systems USA Inc. “Our successful partnership has thrived due to Canon’s innovative technology and trusting collaboration with NXC’s entrepreneurial company culture. The results of our partnership have demonstrated strong results over the past 15 years in the Upper Midwest region.”
To showcase such a broad, diagnostic imaging portfolio, the organization embarked on its first “Truck Tour,” traveling across the U.S. to bring their solutions directly to hospitals and local healthcare providers. The road trip was conceived to provide a hands-on experience to create stronger community engagement throughout the year. The 50-city mobile tour kicked off in Canon Medical Systems USA’s Tustin, Calif., headquarters.
“Providing in-person experiences with current and new customers is key for us as a company. It’s a vital opportunity to connect, ask pressing questions in a face-to-face setting, and to learn more about better servicing their needs,” said David Hashimoto, vice president of Marketing and Sales Strategy. “We’re allowing unprecedented access to our technologies to better guide healthcare professionals with the essential information needed to make important decisions about their patients and business.”
In 2023, the tour expanded with the addition of a second truck and unique East and West Coast routes.
All of this effort, from new product introductions to the unique Truck Tour, was done to help continue to drive growth, which the firm has enjoyed in recent years. During its latest fiscal, the Medical segment reported revenue of ¥513.3 billion, which reflected a rise of 6.9% over the previous year. The 12-month period previous to that, it posted a 10.2% gain, so the organization seems to be seeking to continue that trend.