Mattias Perjos, President & CEO
Lars Sandström, CFO
Paul Marcun, President, Surgical Workflows
Jens Viebke, President, Acute Care Therapies
Carsten Blecker, Chief Commercial Officer
Lena Hagman, Exec. VP, Quality Regulatory Compliance
Harald Castler, President, Life Science
NO. OF EMPLOYEES: 10,684
GLOBAL HEADQUARTERS: Gothenburg, Sweden
What’s happened to the “Group”?
Getinge is a company in transition. Its 2017 fiscal year (which mirrors the 2017 calendar year, ending on Dec. 31, 2017) saw the company’s name truncated to just Getinge and a divestiture of its Patient & Post-Acute Care business.
In March, the organization announced it had unified all its current brands under the single Getinge brand. Previous acquisitions led to a number of names included as part of the Getinge Group, including ArjoHuntleigh, Maquet, Lancer, and Atrium, among others. Going forward, all products would carry this newly unified brand name.
“In line with our ongoing transformation to make our company even more customer-centric, we have taken the next step of unifying all of our brands under the single brand of Getinge. This new brand structure will further strengthen our position as a leading global medtech company. Some of these brands, such as Maquet, will become product family names under the Getinge master brand,” said Raoul Quintero, then president of the Americas at Getinge. “As a single-brand company, we will also be better able to convey our full customer offering, which is designed to help healthcare institutions address the challenges they face in today’s ever-changing healthcare environment of expanding healthcare reform initiatives, financial pressures, and accelerated hospital consolidation.”
The company even launched a new logo, inspired by the star of life associated with emergency medical services, as part of its corporate rebranding effort.
Taking the company’s transformation a step further, in October, Getinge announced it would separate into two unique identities. It would split from its Patient & Post-Acute Care (PPAC; previously known as its Extended Care unit), which would form a new entity—Arjo. The plan for this move originated from a strategic review of the firm conducted in the latter portion of 2016. As a result, the Board of Directors determined PPAC, as well as the related area Flusher Disinfection, should be distributed to Getinge’s shareholders.
“I am looking forward to an exciting and successful future for Arjo”, said Joacim Lindoff, president and CEO of Arjo. “Arjo operates in a market with stable and growing demand, where I see opportunities for us to regain a market-leading position within long-term care while at the same time maintaining our strong market positions within acute care.”
Arjo offers devices and services for people affected by reduced mobility and age-related health challenges. In 2016, its sales totaled SEK 7.8 billion and enjoyed a presence in more than 60 countries. The firm’s declared goal at the time of the announcement was to become a market leader in long-term care, while maintaining its position as a provider of acute care.
Regarding the company’s transformative moves and with the announcement of new financial targets given the divestiture, Mattias Perjos, president and CEO of Getinge, said, “I am confident that our revised strategy and financial targets will create a more focused business and organization that is better positioned to develop market-leading offerings for our customers.”
Getinge’s 2017 fiscal report offers the first glimpse of the new organization’s performance and sales benchmarks going forward. Notching SEK 22.5 billion in 2017, the company was relatively flat against its adjusted 2016 figure (accounting for the divestiture of Arjo), which was SEK 22.2 billion. Those sales are contributed to by two businesses—Acute Care Therapies (contributing 54 percent to the company’s total sales) and Surgical Workflows (46 percent)—each of which are broken into four product segments.
The Acute Care Therapies business develops advanced technologies and products for intensive care, surgical interventions, and catheter-based procedures. It is composed of Critical Care (25 percent of the business’ sales), Vascular Systems (20 percent), Cardiopulmonary (23 percent), and Cardiac Systems (32 percent).
The other business, Surgical Workflows, includes operating room equipment, advanced IT systems, and solutions for infection control. Specifically, its product segments are Surgical Workplaces (38 percent of sales), Infection Control (36 percent), Integrated Workflow solutions (5 percent), and Life Science (19 percent). The Life Science unit, which supports pharmaceutical and biotechnology efforts, represents yet another change for Getinge in 2017. According to the 2017 annual report, the company was making investments into the segment, and beginning Jan. 1, 2018, the entity was formed as a separate business area.
Further seeking to ensure its continued success, Getinge announced a strategic partnership in November with Verb Surgical—a company established from the combined technologies of Verily and Ethicon Endo-Surgery. The relationship’s goal is to combine the knowledge of both firms in an effort to offer a revolutionary platform for surgery. Branded Surgery 4.0 (or Digital Surgery), the solution would include robotics, advanced visualization and instrumentation, operating room integration, connectivity, and data analytics/AI.
“Today’s announcement marks a major milestone in Getinge’s technology efforts in providing our customers with state-of-the-art solutions for their patients. As a global leader in medical technology, Getinge is proud to partner with Verb to drive research and innovation to change the future of the medical industry and carry on our legacy as a complete solutions provider,” stated Perjos.
Marking the year with even more change, Getinge said goodbye to CFO Reinhard Mayer, who had been with the company for nearly 20 years. Mayer cited family reasons for his departure. Taking over the role was Lars Sandström, brought in from outside the industry, where he held several senior positions within the finance organization in Scania and served as senior vice president, Group reporting, Tax & Control in the Volvo Group. He officially moved into the role in January 2018.