07.20.23
Rank: #4 (Last year: #4)
€21.71 Billion ($21.13 Billion)
Prior Fiscal: €18.00 Billion
Percentage Change: +20.7%
R&D Expenditure: €1.78B
Best FY22 Quarter: Q4 €6.0B
Latest Quarter: Q2 €5.35B
No. of Employees: 69,500
Global Headquarters: Erlangen, Germany
KEY EXECUTIVES:
Dr. Bernd Montag, CEO
Dr. Jochen Schmitz, CFO
André Hartung, Head of Imaging
Sharon Bracken, Head of Diagnostics
Chris Toth, Head of Varian
Carsten Bertram, Head of Advanced Therapies
Medical device companies use several sources for their research and development strategies. Ideas can come from the company’s internal R&D team, an outsourced design partner, or other sources of innovation. Universities are often fertile breeding ground for innovative medical technologies. Siemens Healthineers began or expanded several partnerships with universities in 2022.
Siemens expanded a strategic partnership with Finland’s Oulu University Hospital in April, extending it for the next 10 years. The existing radiotherapy collaboration aimed to jointly expand and modernize the radiology department. The new Value Partnership includes supply, installation, and maintenance of medical imaging technology and software, training, further staff education, a flexible financing concept, and consulting services. Also part of the work’s scope is a joint research approach to develop new solutions and treatment methods.
In June, Siemens and its Varian subsidiary began a five-year alliance with Ohio State University Wexner Medical Center. Siemens will offer its comprehensive technology and services, while the university and medical center will contribute research initiatives from scientists, physicians, and patients. The initiative includes outpatient expansion of The Ohio State University Comprehensive Cancer Center – Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. Outpatient Care West Campus, scheduled to open in 2023, will feature cutting-edge imaging and treatment technology made by Siemens Healthineers, including Varian—including proton therapy (ProBeam 360o), radiosurgery (Edge radiosurgery system), and oncology-focused interventional radiology (Artis Q ceiling). West Campus will build on this technology, including the current treatment planning capabilities (Eclipse), to provide advanced diagnostic and treatment planning tools, including Digital PET (Biograph Vision 600) and dual-source dual-energy CT (Somatom Drive and Somatom Force). The two will also co-develop advanced cardiac imaging methods and vascular robotics using the Corindus CorPath GRX system.
On Halloween, Siemens announced a 10-year Value Partnership agreement with the University of Miami Health System (UHealth). UHealth will receive the latest equipment from Siemens Healthineers and Varian to boost diagnostic and therapeutic treatments. The partnership will also include educational and service offerings, digital health technology, and consulting services. The two aim to develop new clinical and operational strategies, and Siemens technology will be used to train the next generation of physicians.
Siemens Healthineers accrued €21.71 billion ($21.13 billion) in revenue in fiscal year 2022, growing 20.7% in terms of Euros, 0.8% when converted to U.S. dollars. Comparable revenue growth was 3.8% when contribution from rapid COVID-19 antigen tests was excluded. Positive portfolio effects related to the Varian acquisition rose about 9%.
ANALYST INSIGHTS: Since the Varian acquisition, the “Healthineers” have been surprisingly quiet on the M&A front for the past few years. Given they also had some “windfall” COVID diagnostics revenue, it might have been a good use of that cash to inorganically add to their innovation pipeline and key business units. In the meantime, Siemens (with Varian in its camp) is quietly building an effective precision medicine platform that may have surprising upside in the years to come.
In EMEA, revenue slipped 1.6% on a comparable basis due to lower demand for rapid COVID-19 antigen tests. Germany was hit particularly hard with a 21.1% revenue drop. Americas revenue swelled 12.9% on a comparable basis due to sharp Diagnostics segment growth, with Imaging and Advanced Therapies following suit. U.S. revenue grew 13.2% on a comparable basis thanks to rapid COVID-19 antigen test approved for sale in FY22. The rapid tests were also the main driver of a 7% comparable revenue increase in Asia and Australia.
The company’s Imaging segment proceeds rose 11.8% to €10.98 billion, with both magnetic resonance and computed tomography showing significant growth. Comparable growth was quite strong in the Americas region, strong in the EMEA region, and moderate in the Asia- Australia region.
In February 2022, the company introduced Artis icono bioplane, an angiography system with detectors tailored in size for use in the cath lab. It allows simple C-arm positioning and regulates X-ray exposure to consider contrast-to-noise ratios. Also, it removes the need for exams with a pressure wire to determine stenosis relevance and if a stent must be placed. In addition, the system can perform fusion imaging, overlaying angiography images with live ultrasound images.
Siemens unveiled the Artis icono biplane angiography system in February as well. Simple C-arm positioning and image acquisition from different angles aims to save time and can lower the contrast agent dose. An integrated quantification feature removes the need for a preliminary exam with a pressure wire and “angio-derived vFFR” requires only two images to provide 3D affected vessel visualization. The fusion imaging also facilitates interventions in patients with structural heart disease, e.g., transcatheter aortic valve implantation (TAVI), closure of the left atrial appendage (LAA closure), or transcatheter mitral valve implantation (TMViV).
Artis icono ceiling was revealed in June. The ceiling-mounted angiography system leverages the OPTIQ image chain to optimize image contrast, reduce noise, and provide 3D data at the patient’s head and from the side over a 200-degree angular range. According to Siemens, 3D images can be acquired in two and a half seconds and the vascular tree must only be visualized once for image-guided catheter navigation. Parameters of third-party software can be imported or modified for image post-processing or training.
Shortly thereafter, Healthineers unveiled the Sybia Pro.specta single photon emission SPECT/CT system with CE mark and FDA clearance. Capabilities include a low-dose CT of up to 64 slices for detail and automatic SPECT motion correction for additional image clarity. Its myExam companion removes manual SPECT/CT imaging workflow and guides through steps of the exam’s decision-making. Data-driven motion correction that corrects for movements in a SPECT exam and respiratory motion correction for cardiac examinations is also available. Symbia Pro.specta touts a minimum 30 and maximum 64 CT slices as well.
The Mobilett Impact mobile X-ray system hit the market in July. All of its imaging data is transmitted wirelessly for undisrupted workflow and optimized dose application. Imaging presets and quick image flavor adjustments also support consistent results, according to Siemens.
Also entering the imaging market in July was Siemens’ Deep Resolve deep learning imaging for image reconstruction. Deep Resolve works with the scanner’s raw data to use AI algorithms to improve the image. According to Siemens, Deep Resolve may shorten brain MRI scan times by up to 70% while doubling resolution. Deep Resolve isn’t limited to one region of the body and was trained with thousands of curated data pairs by comparing data with unaccelerated and accelerated scans. Individual noise maps are used for each scan to reduce noise in the same scan time.
Also in July, Siemens Healthineers integrated the capabilities of its bomile 3D imaging system Cios Spine with Intuitive’s Ion endoluminal system for transbronichial biopsy to enable 3D image transfer to update lung cancer lesions’ targeted location. Offering Cone-Beam CT (CBCT) and the dedicated NaviLink 3D interface, Cios Spin communicates with Ion via automated 3D image transfer. This eliminates the need for manual data exchange and can speed up workflows.
At the European Congress of Radiology in July, the company launched Multix Impact E, which, according to Siemens, is its most affordable X-ray system yet. The fixed-floor system has a floor-mounted tube and optional bucky wall, with optional components to tailor the system to providers’ needs. Its full-size digital detector enables excellent image quality at a low dose.
Rounding out July was Siemens’ refreshed Acuson family. Twelve new transducers across four ultrasound systems and expanded AI-powered tools aims to power more efficiency and consistency for clinicians. Acuson Sequoia provides musculoskeletal imaging and 3D/4D obstetrics and innovating in pediatrics, vascular, and breast imaging. A new 3D/4D volume transducer and AutoDoppler reduce carotid scan time and eliminate 25% of keystrokes via automatic steering, positioning color, and pulsed Doppler.
In November the company presented its Magnetom Cima.X2 with 3T field strength and Magnetom Terra.X1 with 7T. The 3T Magnetom Cima.X2 will use the company’s strongest gradient with an amplitude of 200 mT/m and a slew rate of 200 T/m/s. The Magnetom Terra X1 MR imaging system is the successor to Magnetom Terra, the first 7T clinical system. The higher signal at 7T enables very high-resolution imaging, offering reconstruction algorithms developed directly on the scanner for research applications.
The Magnetom Viato.Mobile MRI scanner for mobile use and featuring a 70cm patient bore was also presented in November. Operation and service can be done remotely with a fixed internet or via a 4G connection, meaning the system can be used almost anywhere and that fewer staff are needed on site.
Diagnostics revenue shot up 11.9% to €6.06 billion. Excluding rapid COVID-19 antigen tests, however, revenue fell 1.4%. Demand for these tests provoked “outstanding” revenue growth in the Americas and Asia/Australia regions due to their approval for sale in the U.S. and Japan in FY22. EMEA region revenue in this segment declined due to a lower contribution from the tests. In total, almost €1.55 billion was added to Siemens’ coffers from rapid antigen test sales.
Siemens Healthineers released its CE-marked FTD SARS-CoV-2/FluA/FluB/HRSV assay, a PCR test, and CLINITEST rapid COVID-19 + influenza antigen test in September. The kit combines the company’s FTD SARS-CoV-2 and FTD Flu/HRSV assays. The combination PCR test spots and differentiates between clinically relevant viruses: SARS-CoV-2, influenza A, influenza B, and HRSV A/B. The three-in-one CLINITEST rapid COVID-19 + influenza A/B antigen test offers results in 15 minutes.
Siemens’ Advanced Therapies business accrued €1.92 billion of proceeds in FY22, rising 11.9%, according to the company’s FY22 annual report. Revenue growth was most significant in the EMEA region and strong in the America’s region. Revenue declined slightly on a comparable basis in the Asia/Australia region.
Varian garnered revenue of €3.07 billion, growing a whopping 136.5% over the previous year. According to Siemens, supply chain delays weighed on revenue development—EMEA and Asia/Australia regions reached double-digit growth over the prior year and the Americas region charted a moderate revenue decrease on a comparable basis.
Finishing off the year was a Bloomberg report that claimed both Siemens Healthineers and GE HealthCare were weighing potential acquisition of Medtronic’s patient monitoring and respiratory businesses, which are to be spun off. Bloomberg cited “people familiar with the matter” in its report, but at the time of this report’s writing, no further light has been shed on the potential transaction.
€21.71 Billion ($21.13 Billion)
Prior Fiscal: €18.00 Billion
Percentage Change: +20.7%
R&D Expenditure: €1.78B
Best FY22 Quarter: Q4 €6.0B
Latest Quarter: Q2 €5.35B
No. of Employees: 69,500
Global Headquarters: Erlangen, Germany
KEY EXECUTIVES:
Dr. Bernd Montag, CEO
Dr. Jochen Schmitz, CFO
André Hartung, Head of Imaging
Sharon Bracken, Head of Diagnostics
Chris Toth, Head of Varian
Carsten Bertram, Head of Advanced Therapies
Medical device companies use several sources for their research and development strategies. Ideas can come from the company’s internal R&D team, an outsourced design partner, or other sources of innovation. Universities are often fertile breeding ground for innovative medical technologies. Siemens Healthineers began or expanded several partnerships with universities in 2022.
Siemens expanded a strategic partnership with Finland’s Oulu University Hospital in April, extending it for the next 10 years. The existing radiotherapy collaboration aimed to jointly expand and modernize the radiology department. The new Value Partnership includes supply, installation, and maintenance of medical imaging technology and software, training, further staff education, a flexible financing concept, and consulting services. Also part of the work’s scope is a joint research approach to develop new solutions and treatment methods.
In June, Siemens and its Varian subsidiary began a five-year alliance with Ohio State University Wexner Medical Center. Siemens will offer its comprehensive technology and services, while the university and medical center will contribute research initiatives from scientists, physicians, and patients. The initiative includes outpatient expansion of The Ohio State University Comprehensive Cancer Center – Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. Outpatient Care West Campus, scheduled to open in 2023, will feature cutting-edge imaging and treatment technology made by Siemens Healthineers, including Varian—including proton therapy (ProBeam 360o), radiosurgery (Edge radiosurgery system), and oncology-focused interventional radiology (Artis Q ceiling). West Campus will build on this technology, including the current treatment planning capabilities (Eclipse), to provide advanced diagnostic and treatment planning tools, including Digital PET (Biograph Vision 600) and dual-source dual-energy CT (Somatom Drive and Somatom Force). The two will also co-develop advanced cardiac imaging methods and vascular robotics using the Corindus CorPath GRX system.
On Halloween, Siemens announced a 10-year Value Partnership agreement with the University of Miami Health System (UHealth). UHealth will receive the latest equipment from Siemens Healthineers and Varian to boost diagnostic and therapeutic treatments. The partnership will also include educational and service offerings, digital health technology, and consulting services. The two aim to develop new clinical and operational strategies, and Siemens technology will be used to train the next generation of physicians.
Siemens Healthineers accrued €21.71 billion ($21.13 billion) in revenue in fiscal year 2022, growing 20.7% in terms of Euros, 0.8% when converted to U.S. dollars. Comparable revenue growth was 3.8% when contribution from rapid COVID-19 antigen tests was excluded. Positive portfolio effects related to the Varian acquisition rose about 9%.
ANALYST INSIGHTS: Since the Varian acquisition, the “Healthineers” have been surprisingly quiet on the M&A front for the past few years. Given they also had some “windfall” COVID diagnostics revenue, it might have been a good use of that cash to inorganically add to their innovation pipeline and key business units. In the meantime, Siemens (with Varian in its camp) is quietly building an effective precision medicine platform that may have surprising upside in the years to come.
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
In EMEA, revenue slipped 1.6% on a comparable basis due to lower demand for rapid COVID-19 antigen tests. Germany was hit particularly hard with a 21.1% revenue drop. Americas revenue swelled 12.9% on a comparable basis due to sharp Diagnostics segment growth, with Imaging and Advanced Therapies following suit. U.S. revenue grew 13.2% on a comparable basis thanks to rapid COVID-19 antigen test approved for sale in FY22. The rapid tests were also the main driver of a 7% comparable revenue increase in Asia and Australia.
The company’s Imaging segment proceeds rose 11.8% to €10.98 billion, with both magnetic resonance and computed tomography showing significant growth. Comparable growth was quite strong in the Americas region, strong in the EMEA region, and moderate in the Asia- Australia region.
In February 2022, the company introduced Artis icono bioplane, an angiography system with detectors tailored in size for use in the cath lab. It allows simple C-arm positioning and regulates X-ray exposure to consider contrast-to-noise ratios. Also, it removes the need for exams with a pressure wire to determine stenosis relevance and if a stent must be placed. In addition, the system can perform fusion imaging, overlaying angiography images with live ultrasound images.
Siemens unveiled the Artis icono biplane angiography system in February as well. Simple C-arm positioning and image acquisition from different angles aims to save time and can lower the contrast agent dose. An integrated quantification feature removes the need for a preliminary exam with a pressure wire and “angio-derived vFFR” requires only two images to provide 3D affected vessel visualization. The fusion imaging also facilitates interventions in patients with structural heart disease, e.g., transcatheter aortic valve implantation (TAVI), closure of the left atrial appendage (LAA closure), or transcatheter mitral valve implantation (TMViV).
Artis icono ceiling was revealed in June. The ceiling-mounted angiography system leverages the OPTIQ image chain to optimize image contrast, reduce noise, and provide 3D data at the patient’s head and from the side over a 200-degree angular range. According to Siemens, 3D images can be acquired in two and a half seconds and the vascular tree must only be visualized once for image-guided catheter navigation. Parameters of third-party software can be imported or modified for image post-processing or training.
Shortly thereafter, Healthineers unveiled the Sybia Pro.specta single photon emission SPECT/CT system with CE mark and FDA clearance. Capabilities include a low-dose CT of up to 64 slices for detail and automatic SPECT motion correction for additional image clarity. Its myExam companion removes manual SPECT/CT imaging workflow and guides through steps of the exam’s decision-making. Data-driven motion correction that corrects for movements in a SPECT exam and respiratory motion correction for cardiac examinations is also available. Symbia Pro.specta touts a minimum 30 and maximum 64 CT slices as well.
The Mobilett Impact mobile X-ray system hit the market in July. All of its imaging data is transmitted wirelessly for undisrupted workflow and optimized dose application. Imaging presets and quick image flavor adjustments also support consistent results, according to Siemens.
Also entering the imaging market in July was Siemens’ Deep Resolve deep learning imaging for image reconstruction. Deep Resolve works with the scanner’s raw data to use AI algorithms to improve the image. According to Siemens, Deep Resolve may shorten brain MRI scan times by up to 70% while doubling resolution. Deep Resolve isn’t limited to one region of the body and was trained with thousands of curated data pairs by comparing data with unaccelerated and accelerated scans. Individual noise maps are used for each scan to reduce noise in the same scan time.
Also in July, Siemens Healthineers integrated the capabilities of its bomile 3D imaging system Cios Spine with Intuitive’s Ion endoluminal system for transbronichial biopsy to enable 3D image transfer to update lung cancer lesions’ targeted location. Offering Cone-Beam CT (CBCT) and the dedicated NaviLink 3D interface, Cios Spin communicates with Ion via automated 3D image transfer. This eliminates the need for manual data exchange and can speed up workflows.
At the European Congress of Radiology in July, the company launched Multix Impact E, which, according to Siemens, is its most affordable X-ray system yet. The fixed-floor system has a floor-mounted tube and optional bucky wall, with optional components to tailor the system to providers’ needs. Its full-size digital detector enables excellent image quality at a low dose.
Rounding out July was Siemens’ refreshed Acuson family. Twelve new transducers across four ultrasound systems and expanded AI-powered tools aims to power more efficiency and consistency for clinicians. Acuson Sequoia provides musculoskeletal imaging and 3D/4D obstetrics and innovating in pediatrics, vascular, and breast imaging. A new 3D/4D volume transducer and AutoDoppler reduce carotid scan time and eliminate 25% of keystrokes via automatic steering, positioning color, and pulsed Doppler.
In November the company presented its Magnetom Cima.X2 with 3T field strength and Magnetom Terra.X1 with 7T. The 3T Magnetom Cima.X2 will use the company’s strongest gradient with an amplitude of 200 mT/m and a slew rate of 200 T/m/s. The Magnetom Terra X1 MR imaging system is the successor to Magnetom Terra, the first 7T clinical system. The higher signal at 7T enables very high-resolution imaging, offering reconstruction algorithms developed directly on the scanner for research applications.
The Magnetom Viato.Mobile MRI scanner for mobile use and featuring a 70cm patient bore was also presented in November. Operation and service can be done remotely with a fixed internet or via a 4G connection, meaning the system can be used almost anywhere and that fewer staff are needed on site.
Diagnostics revenue shot up 11.9% to €6.06 billion. Excluding rapid COVID-19 antigen tests, however, revenue fell 1.4%. Demand for these tests provoked “outstanding” revenue growth in the Americas and Asia/Australia regions due to their approval for sale in the U.S. and Japan in FY22. EMEA region revenue in this segment declined due to a lower contribution from the tests. In total, almost €1.55 billion was added to Siemens’ coffers from rapid antigen test sales.
Siemens Healthineers released its CE-marked FTD SARS-CoV-2/FluA/FluB/HRSV assay, a PCR test, and CLINITEST rapid COVID-19 + influenza antigen test in September. The kit combines the company’s FTD SARS-CoV-2 and FTD Flu/HRSV assays. The combination PCR test spots and differentiates between clinically relevant viruses: SARS-CoV-2, influenza A, influenza B, and HRSV A/B. The three-in-one CLINITEST rapid COVID-19 + influenza A/B antigen test offers results in 15 minutes.
Siemens’ Advanced Therapies business accrued €1.92 billion of proceeds in FY22, rising 11.9%, according to the company’s FY22 annual report. Revenue growth was most significant in the EMEA region and strong in the America’s region. Revenue declined slightly on a comparable basis in the Asia/Australia region.
Varian garnered revenue of €3.07 billion, growing a whopping 136.5% over the previous year. According to Siemens, supply chain delays weighed on revenue development—EMEA and Asia/Australia regions reached double-digit growth over the prior year and the Americas region charted a moderate revenue decrease on a comparable basis.
Finishing off the year was a Bloomberg report that claimed both Siemens Healthineers and GE HealthCare were weighing potential acquisition of Medtronic’s patient monitoring and respiratory businesses, which are to be spun off. Bloomberg cited “people familiar with the matter” in its report, but at the time of this report’s writing, no further light has been shed on the potential transaction.