07.20.22
Rank: #6 (Last year: #5)
$17.72 Billion
Prior Fiscal: $18.01 Billion
Percentage Change: -1.6%
R&D Expenditure: $847M
Best FY21 Quarter: Q4 $4.62B
Latest Quarter: Q1 $4.36B
No. of Employees: 48,000
Global Headquarters: Chicago, Ill.
KEY EXECUTIVES:
Peter J. Arduini, President and CEO
Helmut Zodl, VP and CFO
Betty Larson, Chief People Officer
Jan Makela, President and CEO, Imaging
Roland Rott, President and CEO, Ultrasound
Thomas Westrick, President and CEO, Life Care Solutions
Kevin O’Neill, President and CEO, Pharmaceutical Diagnostics
After years of speculation, GE Healthcare is finally going solo.
In November, GE proclaimed its plan to split the company into three new organizations: GE Healthcare, GE Aviation, and one company combining its Renewable Energy, Power, and Digital businesses. The firm expects the Healthcare business to be spun off in early 2023. GE will retain a stake of 19.9% in the standalone company.
“We have a responsibility to move with speed to shape the future of flight, deliver precision health, and lead the energy transition,” GE chairman and CEO Lawrence Culp told the press. “The momentum we have built puts us in a position of strength to take this exciting next step in GE’s transformation and realize the full potential of each of our businesses.”
Culp will serve as non-executive chairman of the GE healthcare company after its spinoff. He’ll stay on as chairman and CEO of GE until the second spinoff and will lead the aviation-focused company moving forward. Peter Arduini, formerly president and CEO of Integra LifeSciences for about a decade, began leading GE Healthcare at the beginning of this year and will continue to do so following the spinoff. The announcement that Arduini would replace the retiring 13-year GE veteran and Healthcare president/CEO Kieran Murphy came around the end of Q2 last year.
“Pete is stepping in to lead a passionate team at the forefront of an ecosystem striving for precision health, and I look forward to seeing GE Healthcare’s continued leadership for years to come,” Murphy told the press.
The appointment is a homecoming for Arduini, who earlier in his career spent 15 years at GE Healthcare in a variety of leadership positions within Computed Tomography & Molecular Imaging, Healthcare Services, and U.S. sales.
“…the business’s global scale, technical and commercial capabilities, and growth potential as one of the world’s leading medical technology companies is compelling,” Arduini told the press. “I am thrilled to be rejoining GE and for the opportunity to work with GE Healthcare’s team.”
ANALYST INSIGHTS: GE Healthcare is about to get a new lease on life as they will be spun out as a separate business unit in 2023. Since they announced this entity split within GE in late 2021, GE Healthcare has already been more aggressive with M&A, product releases, and investments in inorganic innovation. Expect more of this behavior as they no longer have to answer to GE corporate (or support their debt) as they go forward into an exciting future.
GE Healthcare felt the supply chain disruptions faster than GE’s other businesses in 2021 but cost, sourcing, and logistics management helped to deliver a solid performance. The segment’s revenue last year fell a paltry 1.6% to accrue $17.72 billion, but this was due to completion of the sale of GE’s BioPharma business to Danaher in March 2020. GE reported residual revenue (about $830 million) from the business for 2020. None was reported in 2021, hence the overall loss.
Equipment revenue totaled $9.1 billion in 2021, dropping 8.9% from the previous year due to reductions in life care solutions within healthcare systems products, where there were more COVID-19 related product sales. Supply chain challenges also hindered the business but were partially offset by stronger imaging and ultrasound performance.
Service revenue grew 7.5% to $8.6 billion thanks to a return to pre-pandemic volume in pharmaceutical diagnostics and the healthcare systems service’s continued growth. The healthcare systems segment’s overall sales in 2021 grew 2% over the previous year, reaching $15.7 billion.
Last March, the company unveiled Vscan Air, a wireless, pocket-sized ultrasound with whole-body scanning capabilities. To date, it remains one of the smallest and most lightweight handheld ultrasound devices.
Shallow and deep exams can be completed by flipping the two-sided probe without switching probes. Software presets enable fast scanning, and a single-button probe allows easy image capture and freezing.
Auto-anonymized images can be shared with patients post-scan as well.
In March, the business also revealed the StarGuide next-gen SPECT/CT system for bone procedures, cardiology, neurology, oncology, and other specialties. The system’s 12 CZT digital focus detectors scan in 3D and are optimized for theranostic procedures—where therapy delivery and diagnosis are combined in one procedure. The new CZT detector technology permits functional anatomical mapping, attenuation correction, flexible image reconstruction, and dose reduction.
FDA 510(k) clearance for the OEC 3D surgical imaging system was obtained in March as well. OEC 3D takes intraoperative 3D images for spine and orthopedic procedures with a 19 x 19 x 19-cm field of view and an advanced reconstruction engine quickly presents images with tools and analysis for surgical assessment. OEC 3D is also open to interface with navigation and robotics.
The Venue Fit point-of-care ultrasound (POCUS) system was introduced at the end of last March. It’s the smallest system in the company’s Venue family. At the same time, the RealTime EF AI tool for cardiac scanning and other software applications were rolled out for the Venue POCUS family. RealTime EF continuously calculates the heart’s real-time ejection fraction. Lung Sweep provides a dynamic, panoramic view of the whole lung. Renal Diagram is a documentation tool to select labels from a prepopulated list that correlates with images captured, so clinicians can follow up on suspected kidney infections.
In May, AIR Recon DL deep learning image reconstruction was 510(k) cleared for GE’s SIGNA 7.0T MRI scanners. Part of the firm’s Edison intelligence platform, AIR Recon DL leverages all raw data coming off the MRI scanner to maximize image quality and resolution, even with shorter scan times. Clinical users have reported observations of sharper and less noisy images and 30%-50% exam time reduction using the tool.
In July, GE Healthcare integrated Spectronic Medical’s AI-based software into its portfolio. When combined with Air Recon DL, MR-only based radiotherapy planning is enabled for better soft tissue differentiation than traditional CT so radiotherapy can be better directed. High-quality MR images generated by GE scanners are converted into synthetic CT images using Spectronic’s AI tool, giving CT images with MR soft tissue details to more accurately target lesions.
The AMX Navigate portable, digital X-ray hit the market last September. The X-ray’s power-assisted free motion telescoping column aims to lower lift force by 70% and decrease technologist injury. A Zero Click Exam feature uses a barcode reader to match the patient to the worklist, and Auto Protocol Assist automatically selects the patient’s correct protocol.
September also saw the introduction of the Revolution Ascend CT system. Its new 75-cm-wide gantry, 40-mm detector coverage, and lower table position accommodate high body mass index patients and trauma cases that would otherwise be too delicate to maneuver. The new Effortless Workflow suite of AI tools personalize scans with significantly less technologist effort. According to GE, Ascend reduces clicks necessary to execute a CT scan by 66% and makes exams 21% faster. A dedicated deep neural network generates images with excellent clarity at a low dose.
The $1.45 billion deal for advanced surgical visualization firm BK Medical began last September and was completed about three months later. BK Medical specializes in intra-op imaging and surgical navigation to guide clinicians during minimally invasive and robotic surgeries and visualize deep tissue during neuro and abdominal surgery, as well as ultrasound urology. GE added the fast-growing and relatively new field of real-time surgical visualization to its pre- and post-op ultrasound capabilities for an end-to-end offering. The combination of GE Healthcare’s diagnostic imaging technology with BK’s ability to enable decision-making and surgical visualization in intervention will allow better decision-making throughout the care continuum.
Also in September came introduction of the Definium Tempo fixed, overhead tube suspension (OTS) digital X-ray system, meant to be a “personal assistant” to radiologists and technologists. It acts like an in-room command center with a tube-mounted console for patient selection, technique modification, and positioning setup. Automated workflows help start an exam and auto positioning, auto centering, and auto tracking automate system component positioning to maximize overall ergonomic operation. Definium Tempo is also equipped with features to deliver consistent images and lower variability in positioning and image quality.
The MyoSPECT next-gen cardiac-dedicated nuclear medicine scanner with extended field-of-view processing and automated workflow features was also unveiled in September. It features a wider table and 76% increase in field-of-view volume. Compact CZT detector tech and multi-pinhole collimator design features create a tomographic imaging arc of the heart with motionless detectors so every detector focuses on the heart simultaneously.
GE obtained 510(k) clearance for its X-ray AI algorithm to help assess endotracheal tube (ETT) placement in November. The solution was distributed under FDA COVID-19 imaging guidance since November 2020. Misplaced ETTs can lead to hyperinflation, pneumothorax, cardiac arrest, and death. Over the last year, 200 hospitals deployed the technology. The AI automatically detects ETTs in chest X-ray images and provides an accurate, automated measurement of ETT positioning within seconds of acquiring the image.
The firm unveiled the SIGNA Hero 3.0T MRI in November as well, named after the healthcare workers who have and continue to care for the global community amid the COVID-19 pandemic. It features a 70-cm bore and detachable table to help accommodate patients of all sizes. SIGNA Hero is also equipped with AIR Recon DL image reconstruction. The eco-friendly system is also capable of lowering helium usage by up to 67%, according to GE Healthcare.
The Revolution Apex CT platform was also introduced in November. The modular CT system enables hardware scalability to add service lines. The CT’s Gemstone Clarity Detector lets users update service lines from a 40-mm detector and 0.28-second rotation speed up to 160-mm detector and 0.23-second rotation speed. Effortless Workflow uses AI to automate much of the workflow.
Pharmaceutical diagnostics proceeds rose 13.3% to $2 billion.
Last May, GE announced it was acquiring Zionexa, an innovator of in-vivo and oncology and neurology biomarkers to enable personalized care. In addition to a pipeline of biomarkers, GE gained the FDA-approved Cerianna PET imaging agent, an adjunct to biopsy for detecting estrogen receptor positive lesions to inform treatment selection for recurrent or metastatic breast cancer. GE brought aboard Zionexa’s 24 employees in France to the segment. At the time, the company also hired 70 new dedicated employees to the Marlborough, Mass., pharmaceutical diagnostics team.
“Making Cerianna more widely available is an important moment for cancer patients and a significant step forward for molecular imaging,” Dr. Hannah M. Linden, Breast Medical oncologist, UW Medicine, University of Washington Fred Hutchison Cancer Research Center and Seattle Cancer Care Alliance, told the press. “We test ER expression in a metastatic biopsy once at the beginning of the patient’s journey and we make decisions all along—when to give chemotherapy, when to use endocrine therapy, whether or not to use targeted agents—based on that one measurement.”
Last August, GE Healthcare began collaborating with Amazon Web Services (AWS), offering its AI-based imaging applications and Edison Health Services on AWS. The move aims to help healthcare providers transition from traditional hospital care delivery models to a more virtual, distributed, and decentralized model.
“As the world moves towards a more virtualized and distributed care delivery model with home care, remote patient management, and increased use of AI, radiologists and other clinicians need easy access to data that is seamlessly integrated, aggregated, and visualized in applications and services across modalities and within their existing workflows,” Amit Phadnis, GE Healthcare’s chief digital officer, told the press. “By doing this at scale, we are helping to drive clinical outcomes and achieving our goals of transforming healthcare to be more efficient and personalized.”
$17.72 Billion
Prior Fiscal: $18.01 Billion
Percentage Change: -1.6%
R&D Expenditure: $847M
Best FY21 Quarter: Q4 $4.62B
Latest Quarter: Q1 $4.36B
No. of Employees: 48,000
Global Headquarters: Chicago, Ill.
KEY EXECUTIVES:
Peter J. Arduini, President and CEO
Helmut Zodl, VP and CFO
Betty Larson, Chief People Officer
Jan Makela, President and CEO, Imaging
Roland Rott, President and CEO, Ultrasound
Thomas Westrick, President and CEO, Life Care Solutions
Kevin O’Neill, President and CEO, Pharmaceutical Diagnostics
After years of speculation, GE Healthcare is finally going solo.
In November, GE proclaimed its plan to split the company into three new organizations: GE Healthcare, GE Aviation, and one company combining its Renewable Energy, Power, and Digital businesses. The firm expects the Healthcare business to be spun off in early 2023. GE will retain a stake of 19.9% in the standalone company.
“We have a responsibility to move with speed to shape the future of flight, deliver precision health, and lead the energy transition,” GE chairman and CEO Lawrence Culp told the press. “The momentum we have built puts us in a position of strength to take this exciting next step in GE’s transformation and realize the full potential of each of our businesses.”
Culp will serve as non-executive chairman of the GE healthcare company after its spinoff. He’ll stay on as chairman and CEO of GE until the second spinoff and will lead the aviation-focused company moving forward. Peter Arduini, formerly president and CEO of Integra LifeSciences for about a decade, began leading GE Healthcare at the beginning of this year and will continue to do so following the spinoff. The announcement that Arduini would replace the retiring 13-year GE veteran and Healthcare president/CEO Kieran Murphy came around the end of Q2 last year.
“Pete is stepping in to lead a passionate team at the forefront of an ecosystem striving for precision health, and I look forward to seeing GE Healthcare’s continued leadership for years to come,” Murphy told the press.
The appointment is a homecoming for Arduini, who earlier in his career spent 15 years at GE Healthcare in a variety of leadership positions within Computed Tomography & Molecular Imaging, Healthcare Services, and U.S. sales.
“…the business’s global scale, technical and commercial capabilities, and growth potential as one of the world’s leading medical technology companies is compelling,” Arduini told the press. “I am thrilled to be rejoining GE and for the opportunity to work with GE Healthcare’s team.”
ANALYST INSIGHTS: GE Healthcare is about to get a new lease on life as they will be spun out as a separate business unit in 2023. Since they announced this entity split within GE in late 2021, GE Healthcare has already been more aggressive with M&A, product releases, and investments in inorganic innovation. Expect more of this behavior as they no longer have to answer to GE corporate (or support their debt) as they go forward into an exciting future.
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
GE Healthcare felt the supply chain disruptions faster than GE’s other businesses in 2021 but cost, sourcing, and logistics management helped to deliver a solid performance. The segment’s revenue last year fell a paltry 1.6% to accrue $17.72 billion, but this was due to completion of the sale of GE’s BioPharma business to Danaher in March 2020. GE reported residual revenue (about $830 million) from the business for 2020. None was reported in 2021, hence the overall loss.
Equipment revenue totaled $9.1 billion in 2021, dropping 8.9% from the previous year due to reductions in life care solutions within healthcare systems products, where there were more COVID-19 related product sales. Supply chain challenges also hindered the business but were partially offset by stronger imaging and ultrasound performance.
Service revenue grew 7.5% to $8.6 billion thanks to a return to pre-pandemic volume in pharmaceutical diagnostics and the healthcare systems service’s continued growth. The healthcare systems segment’s overall sales in 2021 grew 2% over the previous year, reaching $15.7 billion.
Last March, the company unveiled Vscan Air, a wireless, pocket-sized ultrasound with whole-body scanning capabilities. To date, it remains one of the smallest and most lightweight handheld ultrasound devices.
Shallow and deep exams can be completed by flipping the two-sided probe without switching probes. Software presets enable fast scanning, and a single-button probe allows easy image capture and freezing.
Auto-anonymized images can be shared with patients post-scan as well.
In March, the business also revealed the StarGuide next-gen SPECT/CT system for bone procedures, cardiology, neurology, oncology, and other specialties. The system’s 12 CZT digital focus detectors scan in 3D and are optimized for theranostic procedures—where therapy delivery and diagnosis are combined in one procedure. The new CZT detector technology permits functional anatomical mapping, attenuation correction, flexible image reconstruction, and dose reduction.
FDA 510(k) clearance for the OEC 3D surgical imaging system was obtained in March as well. OEC 3D takes intraoperative 3D images for spine and orthopedic procedures with a 19 x 19 x 19-cm field of view and an advanced reconstruction engine quickly presents images with tools and analysis for surgical assessment. OEC 3D is also open to interface with navigation and robotics.
The Venue Fit point-of-care ultrasound (POCUS) system was introduced at the end of last March. It’s the smallest system in the company’s Venue family. At the same time, the RealTime EF AI tool for cardiac scanning and other software applications were rolled out for the Venue POCUS family. RealTime EF continuously calculates the heart’s real-time ejection fraction. Lung Sweep provides a dynamic, panoramic view of the whole lung. Renal Diagram is a documentation tool to select labels from a prepopulated list that correlates with images captured, so clinicians can follow up on suspected kidney infections.
In May, AIR Recon DL deep learning image reconstruction was 510(k) cleared for GE’s SIGNA 7.0T MRI scanners. Part of the firm’s Edison intelligence platform, AIR Recon DL leverages all raw data coming off the MRI scanner to maximize image quality and resolution, even with shorter scan times. Clinical users have reported observations of sharper and less noisy images and 30%-50% exam time reduction using the tool.
In July, GE Healthcare integrated Spectronic Medical’s AI-based software into its portfolio. When combined with Air Recon DL, MR-only based radiotherapy planning is enabled for better soft tissue differentiation than traditional CT so radiotherapy can be better directed. High-quality MR images generated by GE scanners are converted into synthetic CT images using Spectronic’s AI tool, giving CT images with MR soft tissue details to more accurately target lesions.
The AMX Navigate portable, digital X-ray hit the market last September. The X-ray’s power-assisted free motion telescoping column aims to lower lift force by 70% and decrease technologist injury. A Zero Click Exam feature uses a barcode reader to match the patient to the worklist, and Auto Protocol Assist automatically selects the patient’s correct protocol.
September also saw the introduction of the Revolution Ascend CT system. Its new 75-cm-wide gantry, 40-mm detector coverage, and lower table position accommodate high body mass index patients and trauma cases that would otherwise be too delicate to maneuver. The new Effortless Workflow suite of AI tools personalize scans with significantly less technologist effort. According to GE, Ascend reduces clicks necessary to execute a CT scan by 66% and makes exams 21% faster. A dedicated deep neural network generates images with excellent clarity at a low dose.
The $1.45 billion deal for advanced surgical visualization firm BK Medical began last September and was completed about three months later. BK Medical specializes in intra-op imaging and surgical navigation to guide clinicians during minimally invasive and robotic surgeries and visualize deep tissue during neuro and abdominal surgery, as well as ultrasound urology. GE added the fast-growing and relatively new field of real-time surgical visualization to its pre- and post-op ultrasound capabilities for an end-to-end offering. The combination of GE Healthcare’s diagnostic imaging technology with BK’s ability to enable decision-making and surgical visualization in intervention will allow better decision-making throughout the care continuum.
Also in September came introduction of the Definium Tempo fixed, overhead tube suspension (OTS) digital X-ray system, meant to be a “personal assistant” to radiologists and technologists. It acts like an in-room command center with a tube-mounted console for patient selection, technique modification, and positioning setup. Automated workflows help start an exam and auto positioning, auto centering, and auto tracking automate system component positioning to maximize overall ergonomic operation. Definium Tempo is also equipped with features to deliver consistent images and lower variability in positioning and image quality.
The MyoSPECT next-gen cardiac-dedicated nuclear medicine scanner with extended field-of-view processing and automated workflow features was also unveiled in September. It features a wider table and 76% increase in field-of-view volume. Compact CZT detector tech and multi-pinhole collimator design features create a tomographic imaging arc of the heart with motionless detectors so every detector focuses on the heart simultaneously.
GE obtained 510(k) clearance for its X-ray AI algorithm to help assess endotracheal tube (ETT) placement in November. The solution was distributed under FDA COVID-19 imaging guidance since November 2020. Misplaced ETTs can lead to hyperinflation, pneumothorax, cardiac arrest, and death. Over the last year, 200 hospitals deployed the technology. The AI automatically detects ETTs in chest X-ray images and provides an accurate, automated measurement of ETT positioning within seconds of acquiring the image.
The firm unveiled the SIGNA Hero 3.0T MRI in November as well, named after the healthcare workers who have and continue to care for the global community amid the COVID-19 pandemic. It features a 70-cm bore and detachable table to help accommodate patients of all sizes. SIGNA Hero is also equipped with AIR Recon DL image reconstruction. The eco-friendly system is also capable of lowering helium usage by up to 67%, according to GE Healthcare.
The Revolution Apex CT platform was also introduced in November. The modular CT system enables hardware scalability to add service lines. The CT’s Gemstone Clarity Detector lets users update service lines from a 40-mm detector and 0.28-second rotation speed up to 160-mm detector and 0.23-second rotation speed. Effortless Workflow uses AI to automate much of the workflow.
Pharmaceutical diagnostics proceeds rose 13.3% to $2 billion.
Last May, GE announced it was acquiring Zionexa, an innovator of in-vivo and oncology and neurology biomarkers to enable personalized care. In addition to a pipeline of biomarkers, GE gained the FDA-approved Cerianna PET imaging agent, an adjunct to biopsy for detecting estrogen receptor positive lesions to inform treatment selection for recurrent or metastatic breast cancer. GE brought aboard Zionexa’s 24 employees in France to the segment. At the time, the company also hired 70 new dedicated employees to the Marlborough, Mass., pharmaceutical diagnostics team.
“Making Cerianna more widely available is an important moment for cancer patients and a significant step forward for molecular imaging,” Dr. Hannah M. Linden, Breast Medical oncologist, UW Medicine, University of Washington Fred Hutchison Cancer Research Center and Seattle Cancer Care Alliance, told the press. “We test ER expression in a metastatic biopsy once at the beginning of the patient’s journey and we make decisions all along—when to give chemotherapy, when to use endocrine therapy, whether or not to use targeted agents—based on that one measurement.”
Last August, GE Healthcare began collaborating with Amazon Web Services (AWS), offering its AI-based imaging applications and Edison Health Services on AWS. The move aims to help healthcare providers transition from traditional hospital care delivery models to a more virtual, distributed, and decentralized model.
“As the world moves towards a more virtualized and distributed care delivery model with home care, remote patient management, and increased use of AI, radiologists and other clinicians need easy access to data that is seamlessly integrated, aggregated, and visualized in applications and services across modalities and within their existing workflows,” Amit Phadnis, GE Healthcare’s chief digital officer, told the press. “By doing this at scale, we are helping to drive clinical outcomes and achieving our goals of transforming healthcare to be more efficient and personalized.”