$17.54 Billion ($101 B Total)
Peter Loscher, President & CEO, Siemens AG
Hermann Requardt, President & CEO, Siemens Healthcare
Michael Sen, CFO, Siemens Healthcare
Gregory Sorensen, M.D., CEO, Siemens Healthcare, United States
Norbert Gaus, CEO, Customer Solutions, Siemens Healthcare
Michael Reitermann, CEO, Siemens Healthcare, Diagnostics
Jeffrey Bundy, CEO, Siemens Healthcare, Ultrasound
Bernd Montag, CEO, Siemens Healthcare, Imaging & Therapy Systems
Britta Fuenfstueck, CEO, Siemens Healthcare, Clinical Products
No. of Employees: 51,000 (370,000 total)
Global Headquarters: Munich, Germany
Prolific patents. When you’ve got deep pockets, perhaps churning out innovative technology is child’s play. But we all know it takes more than just dedicated funding to fuel novel the invention of novel products.
Siemens AG is a multinational conglomerate focusing on four key product areas: industry, energy, transportation and healthcare. To name a few of its high-tech product categories, the company makes next-generation high-speed trains; large wind-powered generators; lighting; systems for airport logistics, cargo tracking and baggage handling; and, of course, healthcare. Among its medical device innovations, Siemens Healthcare makes technology for in-vitro diagnostics; imaging equipment including angiography, computed tomography, fluoroscopy, magnetic resonance, mammography, molecular imaging ultrasound, and X-ray equipment; and radiation oncology and particle therapy equipment.
To give you an idea of just how seriously Siemens takes its commitment to develop new technology, the company’s R&D employees—across all its division, not just healthcare—are reporting more than twice as many inventions per day as in 2001. In fiscal 2012, the company filed 8,900 invention reports, 5 percent more than a year earlier, and spent 4.2 billion euros, an increase of 9 percent compared with 2011. For the healthcare sector, approximately $1.7 billion was spent on R&D, up 12 percent. During the same period, Siemens increased the number of patent-first filings company-wide by about 7 percent to 4,600, which according to the firm’s leadership, makes the company a leader in worldwide patent statistics. In 2011, the company was number one in patents filed with the European Patent Office, number three in the German Patent and Trademark Office and tenth in number of submissions at the U.S. Patent and Trademark Office.
Despite the steady wave of innovation, achieving gains in FY12 was a challenge for the 165-year-old German company—at least as described by its leadership (because you’d never tell by the numbers).
“Fiscal 2012 was not an easy year for us. Even though we achieved one of our best results ever—despite the difficult economic environment worldwide—we didn’t fully attain our goals of outperforming the market and our competitors,” Peter Loscher, president and CEO of Siemens AG, wrote to shareholders at the end of the fiscal year.
The company may not have hit the marks it wanted, but in a sluggish economy, high single-digit growth isn’t shabby. Healthcare revenue for 2012 was $17.5 billion, up 9 percent (in euros—while currency amounts will be converted, the percentages remain based on the currency in which the financials are reported). Profit for the sector was $2.3 billion, up 36 percent from 2011, which according to the company, were fueled by a strong performance from its imaging and therapy systems businesses, in addition to fewer special charges for the year. By global sector, the United States remained the single largest market for Siemens’ healthcare unit. The Americas overall grew sales 9 percent to $7.3 billion. Europe, Africa, and the Middle East were responsible for $5.9 billion in sales, up 2 percent. Asia and Australia, while not the largest by sales ($4.3 billion), packed the largest growth punch—increasing 21 percent compared with 2011. In fiscal 2012, the Healthcare sector launched Agenda 2013, a two-year global initiative to improve innovation and competitiveness. According to company officials, Agenda 2013 is the division’s “proactive response” to the challenges of a changing market environment. Agenda 2013 includes measures targeting innovation, regional presence, competitiveness and human resource development, including investments in product development and expanded sales activities in growth markets.
For the company overall in 2012, revenue was approximately $100.7 billion, up 6.9 percent. Net income for fiscal 2012 declined 27 percent to roughly to $5.9 billion.
Fiscal 2012 included a few key acquisition and product approvals, including:
- In August last year, Siemens purchased Penrith Corp. of Plymouth Meeting, Pa., a manufacturer of integrated ultrasound imaging systems. Terms of the deal were not disclosed. Michael Cannon, president of Penrith, became vice president and general manager of point-of-care solutions for the Siemens Healthcare ultrasound business unit. Penrith’s niche is in the miniaturization and integration of ultrasound imaging systems. “This acquisition uniquely positions. Siemens to bring new, meaningful solutions to the ultrasound market and to expand our presence in attractive business segments,” said Jeffrey Bundy, chief executive of Siemens Healthcare Ultrasound Business Unit. “Through this acquisition, Siemens is executing its strategic focus, announced via Agenda 2013, on strengthening the Healthcare sector’s innovative power and competitiveness.”
- In July 2012, Siemens Healthcare received 510(k) clearance for its Magnetom Spectra 3 Tesla MRI system from the U.S. Food and Drug Administration (FDA). The new system can be used for a broad spectrum of applications, from diagnosing damaged ankle cartilage to conducting dynamic abdominal examinations to performing functional brain imaging, according to the company.
- In June last year, the FDA also gave 510(k) clearance for the Somatom Perspective CT Scanner, an advanced 128-slice computed tomography (CT) scanner (computer-processed X-rays are used to produce tomographic images or “slices” of specific areas of the body) engineered to drive efficiency and reduce costs. The scanner is designed especially for community hospitals, critical access hospitals and outpatient centers, offering the ability to extend the range of available examinations to their communities at reduced radiation dose in a budget-conscious environment. The system is another part of the company’s Agenda 2013 global initiative. Exclusive to the new device is the “eMode” feature, which was created to determine and automatically select system scan parameters so the CT operates with as low a load as possible, with the goal to minimize wear and increase the scanner’s life cycle. More efficient use of the CT system means less customer downtime, which may potentially translate to higher availability and potentially better patient care.
- Siemens announced the first integrated amyloid imaging solution in the U.S. market for evaluating Alzheimer’s disease and other causes of cognitive decline—introducing solutions for positron emission tomography (PET) imaging of beta-amyloid neuritic plaques in the living brain, combining reliable radiopharmaceutical manufacturing and distribution with innovative PET hardware and software. The FDA cleared the company’s application for the Syngo PET Amyloid Plaque proprietary neurology quantification software, as well Eli Lilly and Company’s Amyvid, a radioactive diagnostic agent indicated for brain imaging of beta-amyloid plaques in patients with cognitive impairment who are being evaluated for Alzheimer’s disease and other causes of cognitive decline. With aging populations and extended life expectancies, the number of Alzheimer’s cases in the United States and worldwide is growing. Progressing steadily and unmercifully, Alzheimer’s disease is now the sixth leading cause of death in the United States. With 5.4 million Americans living with the disease—and another person joining that group every 69 seconds—this number is predicted to triple by 2050. As deaths from stroke, cancer and heart disease decreased significantly between 2000 and 2008, Alzheimer’s-related deaths rose 66 percent.