07.22.21
Rank: #5 (Last year: #4)
$18.01 Billion ($80.55 Billion)
Prior Fiscal: $19.9 Billion
Percentage Change: -10%
No. of Employees: 47,000 (174,000 total)
Global Headquarters: Chicago, Ill.
KEY EXECUTIVES:
H. Lawrence Culp Jr., Chairman and CEO, GE
Carolina Dybeck Happe, SVP and CFO, GE
Kieran Murphy, President and CEO, GE Healthcare
Helmut Zodl, VP and CFO, GE Healthcare
Jan Makela, President and CEO, GE Healthcare Imaging
Roland Rott, CEO, GE Healthcare Ultrasound
Thomas Westrick, President and CEO, GE Healthcare Life Care Solutions
Kevin O’Neill, President and CEO, GE Healthcare Pharmaceutical Diagnostics
Luiz Verzegnassi, President and CEO, GE Healthcare Services
Everett Cunningham, President and CEO, GE Healthcare U.S. and Canada
Catherine Estrampes, President and CEO, GE Healthcare EMEA
Yihao Zhang, President and CEO, GE Healthcare China
Rob Walton, President and CEO, ASEAN, Korea, and ANZ
Soichiro Tada, President and CEO, GE Healthcare Japan
Rafael Palombini, President and CEO, GE Healthcare Latin America
Shravan Subramanyam, President and CEO, GE Healthcare India & South Asia
It is said “politics makes for strange bedfellows.” Perhaps the same is true of pandemics. For what other reason might a major automobile manufacturer partner with a leading medical device firm on the production of ventilators? While seeming like an odd pairing, the industrial couple announced—at the end of March 2020—they were committed to producing 50,000 simplified ventilators by July 8.
The machines were in high demand at the start of the pandemic as they were indicated for severe patients suffering from the COVID-19 virus. The units being produced were a design licensed from Airon, a Melbourne, Fla.-based manufacturer of non-invasive and invasive ventilation solutions including CPAP. The typical price for such a ventilator would run approximately $7,000, which is inexpensive when compared to more sophisticated units that would be priced at $20,000 or more. Still, even those prices were better than the inflated numbers caused by panic-induced bidding by states and healthcare facilities to try to secure the much-needed technologies. That number was cited as $40,000 per device or more by New York Gov. Andrew Cuomo.
Several weeks after the announced partnership, it was reported the pair had signed an agreement with the U.S. government to produce the 50,000 ventilators at a price tag of $336 million—approximately $6,720 per unit. The agreement was made under the Defense Production Act. Ford said the manufacture of the ventilators was being done at cost; GM, who was involved in a similar arrangement with Ventec Life Systems, made a similar claim regarding their deal.
The deal was the second such contract for GE with the U.S. government. Earlier in that same week in April, it was announced the organization had agreed to produce 2,410 units for $64.1 million. That arrangement was part of a Department of Health and Human Services contract that involved six other firms—Hillrom, Medtronic, ResMed, Vyaire, Hamilton, and Zoll—besides GE in order to address the urgent need for ventilators.
On Aug. 28, 2020, Ford shipped its final unit, completing its commitment to produce 50,000 units. The Michigan factory, which had been converted for the task, was to return to auto parts. While the effort was momentous, delays in the production timeline were attributed to the introduction of new suppliers necessary to address the increased volume.
Undoubtedly, this was the type of effort Kieran Murphy, president and CEO of GE Healthcare, was making reference to in his statement on March 19 regarding the contribution the company would make in the fight against COVID-19. “To help address this global challenge, we have increased our manufacturing capacity and output of equipment—including CTs, ultrasound devices, mobile X-ray systems, patient monitors and ventilators—important in the diagnosis and treatment of COVID-19 patients, while taking steps to ensure safe operations for our employees.”
Ventilators represented just one example of the company’s commitment to providing solutions to care providers who desperately needed supplies to combat the virus. In April, the organization introduced its Mural Virtual Care Solution, which offered hospitals a view of patients who were on ventilators. The system could also offer insight on patients who were at risk of deterioration. Not only did this offering provide for comprehensive information on those patients, but it did so at a central location so the data could be reviewed while maintaining a safe distance to help prevent greater infection risks.
“Now more than ever we need to manage a greater number of ventilated patients with limited resources. Mural Virtual Care on Microsoft Azure allows for remote management and surveillance of ventilated patients at scale,” said Microsoft Global chief medical officer Dr. David Rhew.
Another product tied to the fight against coronavirus was its Thoracic Care Suite, which was described as a collection of eight artificial intelligence (AI) algorithms from Lunit INSIGHT CXR to help alleviate clinical strain due to COVID-19. Used to analyze chest X-rays, the system highlights abnormalities for radiologists to review, including pneumonia and acute respiratory distress.
ANALYST INSIGHTS: While not overly exciting in its portfolio moves, GE Healthcare is quietly executing its innovation strategy to enhance its core imaging businesses. Investments in new products (VScan Air) and AI solutions in radiology platforms should allow them to continue to maintain their marketshare.
In November, GE Healthcare announced another AI-based solution to aid clinicians treating COVID-19 patients. Part of its Critical Care Suite 2.0, this algorithm would help clinicians assess endotracheal tube (ETT) placements, a procedure performed on those patients requiring ventilation. According to GE, up to 25 percent of patients intubated outside of the OR have misplaced ETTs when reviewed on chest X-rays.
While the news around medical devices introduced to aid in the fight against the virus dominated headlines in 2020, GE Healthcare still offered other announcements that were noteworthy. The most significant was the completion of the sale of its BioPharma business to Danaher Corporation for $21.4 billion. The deal, which was final on the last day of Q1 2020, was first announced in February 2019. The unit provided equipment and software used for biopharmaceutical research. Upon transfer to Danaher, it was to be named Cytiva and would perform as a stand-alone company within the organization’s life sciences segment.
At the time of the announcement of the sale, Murphy said, “The BioPharma business has been a strong contributor to our success, and I am confident this agreement represents a great opportunity for our valued colleagues to flourish under the ownership of Danaher. GE Healthcare has unsurpassed scale and scope and we will continue to focus on our investments so that we deliver better outcomes and more capacity to a world striving for Precision Health.”
According to GE, in 2018, the Biopharma business contributed approximately $3 billion to the firm’s revenue total. The other portion of the Life Sciences segment, Pharmaceutical Diagnostics, remained as part of the GE Healthcare unit.
GE Healthcare was involved in another divestiture later in the year when it announced the sale of its U.S. radiopharmacy network to Radioisotope Life Sciences (RLS). As a result of the transaction, RLS was propelled to the top of the list of largest pure molecular imaging focused firms in the U.S. Molecular imaging products from GE Healthcare would still be offered through the radiopharmacy as a result of a 10-year distribution partnership agreement.
While GE was saying goodbye to substantial assets, it also welcomed a significant acquisition late in 2020. Seeking to increase the performance of its CT capabilities, the company purchased Swedish startup Prismatic Sensors AB, which had been focused on photon counting CT technology (PCCT). PCCT has the potential to further expand the clinical capabilities of traditional CT, including the visualization of minute details of organ structures, improved tissue characterization, more accurate material density measurement (or quantification), and lower radiation dose. CT technology is used to detect cancer, heart conditions, and other diseases.
Undoubtedly, the moves made in 2020 were accomplished to allow GE Healthcare to shed non-focus areas, while bolstering healthcare segments it viewed as opportunities. How that impacts the firm’s financials going forward remains to be seen, but in 2020, the organization saw an approximately 10 percent decrease from its 2019 figures. Within the parent GE, that was the second largest percentage decrease behind Aviation (down 33 percent).
Perhaps the positive takeaway with regard to the double-digit drop was the fact it could likely be attributed to the loss of revenue from the purged BioPharma unit, as this segment only contributed $830 million to the organization’s bottom line. In contrast, BioPharma provided $3.3 billion to GE Healthcare’s revenue figure in 2019. Even keeping that figure flat in 2020 would have resulted in a gain in total revenue for the company in its latest fiscal year.
Picking up some of the loss, the main unit of GE Healthcare—Healthcare Systems—enjoyed an increase in revenue of nearly $1 billion, growing from $14.6 billion in 2019 to $15.4 billion in 2020. Many of the gains were attributed to the increased demand for products related to the treatment of COVID-19 patients.
The remaining segment—Pharmaceutical Diagnostics—shrank by about $200 million to finish at $1.8 billion in revenue for the year. Reduced demand in the first half of 2020 contributed to the decline during the fiscal period.
With its focus on the future to achieve growth, GE Healthcare was aggressive in new product launches, having introduced more than 40 products within fiscal 2020. Most of these products involved imaging solutions for diagnostic applications. There were a number of highlights among them.
In support of the battle against breast cancer, the firm announced the clearance of its Pristina Serena Bright, a contrast-enhanced mammography solution for biopsy. The product enables a breast biopsy exam to be performed with the same mammography equipment, with the same staff, and in the same room as the screening or diagnostic mammogram.
GE Healthcare’s shatterproof polymer +PLUSPAK Pharmacy Bulk Package was approved in the U.S. for use with the macrocyclic gadolinium-based MRI contrast agent, Clariscan. The combination of Clariscan in a +PLUSPAK offers MRI departments a variety of ways in which they can improve safety and workflow efficiency, as the polymer bottle reduces risk of breakage and injury from broken glass. According to GE, 16 percent of sharps injuries in healthcare settings are associated with glass bottles.
The company also gained FDA approval to have its Clariscan MRI contrast agent available in pre-filled syringes. Another safety measure to address injuries from broken glass, this offering was also provided with color-coded volume labels to allow for easy identification of the required patient-specific volume (10, 15, or 20 mL). Further, its 2D data matrix contains scannable key information to be uploaded onto electronic medical systems, reducing the risk of manual data entry errors and helping to further increase workflow efficiency at medical centers.
Featuring AI algorithms to support auto recognition, the Voluson SWIFT is an ultrasound system designed to expand diagnostic capabilities and improve patient outcomes for women’s health clinicians. It features an embedded AI platform, including the SonoLyst application—a fully integrated AI tool that recognizes the 20 views recommended by the International Society of Ultrasound in Obstetrics and Gynecology mid-trimester practice guidelines for fetal imaging, optimizing the scan workflow by 73 percent when compared to manual 2D workflow. The Scan Assistant tool guides clinicians through protocols and reduces scanning time by up to 45 percent. SonoBiometry measurements are 38 percent faster with the unit. Further, the platform can help reduce keystrokes by 78 percent when capturing desired planes and measurements of the fetal central nervous system.
The company gained 510(k) clearance for its Ultra Edition package on Vivid cardiovascular ultrasound systems, which includes new features based on AI that enable clinicians to acquire faster, more repeatable exams consistently. It provides increased efficiencies to the scanning process for reduced exam time through up to 80 percent fewer clicks, 99 percent accuracy, and less inter-operator variability.
In November, GE announced its SIGNA 7.0T magnetic resonance imaging (MRI) scanner had gained U.S. FDA 510(k) clearance. According to the firm, the system was the world’s most powerful FDA-cleared MRI device available at the time of the announcement. With a magnet approximately five times more powerful than most clinical systems, the SIGNA 7.0T could image anatomy, function, metabolism, and microvasculature in the brain and joints with high resolution and detail. The system also features the organization’s latest SIGNAWorks software platform with state-of-the-art applications, such as deep learning-based tools like AIR x brain for automated slice positioning and Silent MR imaging, enabling seamless protocol translation between GE MR systems.
$18.01 Billion ($80.55 Billion)
Prior Fiscal: $19.9 Billion
Percentage Change: -10%
No. of Employees: 47,000 (174,000 total)
Global Headquarters: Chicago, Ill.
KEY EXECUTIVES:
H. Lawrence Culp Jr., Chairman and CEO, GE
Carolina Dybeck Happe, SVP and CFO, GE
Kieran Murphy, President and CEO, GE Healthcare
Helmut Zodl, VP and CFO, GE Healthcare
Jan Makela, President and CEO, GE Healthcare Imaging
Roland Rott, CEO, GE Healthcare Ultrasound
Thomas Westrick, President and CEO, GE Healthcare Life Care Solutions
Kevin O’Neill, President and CEO, GE Healthcare Pharmaceutical Diagnostics
Luiz Verzegnassi, President and CEO, GE Healthcare Services
Everett Cunningham, President and CEO, GE Healthcare U.S. and Canada
Catherine Estrampes, President and CEO, GE Healthcare EMEA
Yihao Zhang, President and CEO, GE Healthcare China
Rob Walton, President and CEO, ASEAN, Korea, and ANZ
Soichiro Tada, President and CEO, GE Healthcare Japan
Rafael Palombini, President and CEO, GE Healthcare Latin America
Shravan Subramanyam, President and CEO, GE Healthcare India & South Asia
It is said “politics makes for strange bedfellows.” Perhaps the same is true of pandemics. For what other reason might a major automobile manufacturer partner with a leading medical device firm on the production of ventilators? While seeming like an odd pairing, the industrial couple announced—at the end of March 2020—they were committed to producing 50,000 simplified ventilators by July 8.
The machines were in high demand at the start of the pandemic as they were indicated for severe patients suffering from the COVID-19 virus. The units being produced were a design licensed from Airon, a Melbourne, Fla.-based manufacturer of non-invasive and invasive ventilation solutions including CPAP. The typical price for such a ventilator would run approximately $7,000, which is inexpensive when compared to more sophisticated units that would be priced at $20,000 or more. Still, even those prices were better than the inflated numbers caused by panic-induced bidding by states and healthcare facilities to try to secure the much-needed technologies. That number was cited as $40,000 per device or more by New York Gov. Andrew Cuomo.
Several weeks after the announced partnership, it was reported the pair had signed an agreement with the U.S. government to produce the 50,000 ventilators at a price tag of $336 million—approximately $6,720 per unit. The agreement was made under the Defense Production Act. Ford said the manufacture of the ventilators was being done at cost; GM, who was involved in a similar arrangement with Ventec Life Systems, made a similar claim regarding their deal.
The deal was the second such contract for GE with the U.S. government. Earlier in that same week in April, it was announced the organization had agreed to produce 2,410 units for $64.1 million. That arrangement was part of a Department of Health and Human Services contract that involved six other firms—Hillrom, Medtronic, ResMed, Vyaire, Hamilton, and Zoll—besides GE in order to address the urgent need for ventilators.
On Aug. 28, 2020, Ford shipped its final unit, completing its commitment to produce 50,000 units. The Michigan factory, which had been converted for the task, was to return to auto parts. While the effort was momentous, delays in the production timeline were attributed to the introduction of new suppliers necessary to address the increased volume.
Undoubtedly, this was the type of effort Kieran Murphy, president and CEO of GE Healthcare, was making reference to in his statement on March 19 regarding the contribution the company would make in the fight against COVID-19. “To help address this global challenge, we have increased our manufacturing capacity and output of equipment—including CTs, ultrasound devices, mobile X-ray systems, patient monitors and ventilators—important in the diagnosis and treatment of COVID-19 patients, while taking steps to ensure safe operations for our employees.”
Ventilators represented just one example of the company’s commitment to providing solutions to care providers who desperately needed supplies to combat the virus. In April, the organization introduced its Mural Virtual Care Solution, which offered hospitals a view of patients who were on ventilators. The system could also offer insight on patients who were at risk of deterioration. Not only did this offering provide for comprehensive information on those patients, but it did so at a central location so the data could be reviewed while maintaining a safe distance to help prevent greater infection risks.
“Now more than ever we need to manage a greater number of ventilated patients with limited resources. Mural Virtual Care on Microsoft Azure allows for remote management and surveillance of ventilated patients at scale,” said Microsoft Global chief medical officer Dr. David Rhew.
Another product tied to the fight against coronavirus was its Thoracic Care Suite, which was described as a collection of eight artificial intelligence (AI) algorithms from Lunit INSIGHT CXR to help alleviate clinical strain due to COVID-19. Used to analyze chest X-rays, the system highlights abnormalities for radiologists to review, including pneumonia and acute respiratory distress.
ANALYST INSIGHTS: While not overly exciting in its portfolio moves, GE Healthcare is quietly executing its innovation strategy to enhance its core imaging businesses. Investments in new products (VScan Air) and AI solutions in radiology platforms should allow them to continue to maintain their marketshare.
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
In November, GE Healthcare announced another AI-based solution to aid clinicians treating COVID-19 patients. Part of its Critical Care Suite 2.0, this algorithm would help clinicians assess endotracheal tube (ETT) placements, a procedure performed on those patients requiring ventilation. According to GE, up to 25 percent of patients intubated outside of the OR have misplaced ETTs when reviewed on chest X-rays.
While the news around medical devices introduced to aid in the fight against the virus dominated headlines in 2020, GE Healthcare still offered other announcements that were noteworthy. The most significant was the completion of the sale of its BioPharma business to Danaher Corporation for $21.4 billion. The deal, which was final on the last day of Q1 2020, was first announced in February 2019. The unit provided equipment and software used for biopharmaceutical research. Upon transfer to Danaher, it was to be named Cytiva and would perform as a stand-alone company within the organization’s life sciences segment.
At the time of the announcement of the sale, Murphy said, “The BioPharma business has been a strong contributor to our success, and I am confident this agreement represents a great opportunity for our valued colleagues to flourish under the ownership of Danaher. GE Healthcare has unsurpassed scale and scope and we will continue to focus on our investments so that we deliver better outcomes and more capacity to a world striving for Precision Health.”
According to GE, in 2018, the Biopharma business contributed approximately $3 billion to the firm’s revenue total. The other portion of the Life Sciences segment, Pharmaceutical Diagnostics, remained as part of the GE Healthcare unit.
GE Healthcare was involved in another divestiture later in the year when it announced the sale of its U.S. radiopharmacy network to Radioisotope Life Sciences (RLS). As a result of the transaction, RLS was propelled to the top of the list of largest pure molecular imaging focused firms in the U.S. Molecular imaging products from GE Healthcare would still be offered through the radiopharmacy as a result of a 10-year distribution partnership agreement.
While GE was saying goodbye to substantial assets, it also welcomed a significant acquisition late in 2020. Seeking to increase the performance of its CT capabilities, the company purchased Swedish startup Prismatic Sensors AB, which had been focused on photon counting CT technology (PCCT). PCCT has the potential to further expand the clinical capabilities of traditional CT, including the visualization of minute details of organ structures, improved tissue characterization, more accurate material density measurement (or quantification), and lower radiation dose. CT technology is used to detect cancer, heart conditions, and other diseases.
Undoubtedly, the moves made in 2020 were accomplished to allow GE Healthcare to shed non-focus areas, while bolstering healthcare segments it viewed as opportunities. How that impacts the firm’s financials going forward remains to be seen, but in 2020, the organization saw an approximately 10 percent decrease from its 2019 figures. Within the parent GE, that was the second largest percentage decrease behind Aviation (down 33 percent).
Perhaps the positive takeaway with regard to the double-digit drop was the fact it could likely be attributed to the loss of revenue from the purged BioPharma unit, as this segment only contributed $830 million to the organization’s bottom line. In contrast, BioPharma provided $3.3 billion to GE Healthcare’s revenue figure in 2019. Even keeping that figure flat in 2020 would have resulted in a gain in total revenue for the company in its latest fiscal year.
Picking up some of the loss, the main unit of GE Healthcare—Healthcare Systems—enjoyed an increase in revenue of nearly $1 billion, growing from $14.6 billion in 2019 to $15.4 billion in 2020. Many of the gains were attributed to the increased demand for products related to the treatment of COVID-19 patients.
The remaining segment—Pharmaceutical Diagnostics—shrank by about $200 million to finish at $1.8 billion in revenue for the year. Reduced demand in the first half of 2020 contributed to the decline during the fiscal period.
With its focus on the future to achieve growth, GE Healthcare was aggressive in new product launches, having introduced more than 40 products within fiscal 2020. Most of these products involved imaging solutions for diagnostic applications. There were a number of highlights among them.
In support of the battle against breast cancer, the firm announced the clearance of its Pristina Serena Bright, a contrast-enhanced mammography solution for biopsy. The product enables a breast biopsy exam to be performed with the same mammography equipment, with the same staff, and in the same room as the screening or diagnostic mammogram.
GE Healthcare’s shatterproof polymer +PLUSPAK Pharmacy Bulk Package was approved in the U.S. for use with the macrocyclic gadolinium-based MRI contrast agent, Clariscan. The combination of Clariscan in a +PLUSPAK offers MRI departments a variety of ways in which they can improve safety and workflow efficiency, as the polymer bottle reduces risk of breakage and injury from broken glass. According to GE, 16 percent of sharps injuries in healthcare settings are associated with glass bottles.
The company also gained FDA approval to have its Clariscan MRI contrast agent available in pre-filled syringes. Another safety measure to address injuries from broken glass, this offering was also provided with color-coded volume labels to allow for easy identification of the required patient-specific volume (10, 15, or 20 mL). Further, its 2D data matrix contains scannable key information to be uploaded onto electronic medical systems, reducing the risk of manual data entry errors and helping to further increase workflow efficiency at medical centers.
Featuring AI algorithms to support auto recognition, the Voluson SWIFT is an ultrasound system designed to expand diagnostic capabilities and improve patient outcomes for women’s health clinicians. It features an embedded AI platform, including the SonoLyst application—a fully integrated AI tool that recognizes the 20 views recommended by the International Society of Ultrasound in Obstetrics and Gynecology mid-trimester practice guidelines for fetal imaging, optimizing the scan workflow by 73 percent when compared to manual 2D workflow. The Scan Assistant tool guides clinicians through protocols and reduces scanning time by up to 45 percent. SonoBiometry measurements are 38 percent faster with the unit. Further, the platform can help reduce keystrokes by 78 percent when capturing desired planes and measurements of the fetal central nervous system.
The company gained 510(k) clearance for its Ultra Edition package on Vivid cardiovascular ultrasound systems, which includes new features based on AI that enable clinicians to acquire faster, more repeatable exams consistently. It provides increased efficiencies to the scanning process for reduced exam time through up to 80 percent fewer clicks, 99 percent accuracy, and less inter-operator variability.
In November, GE announced its SIGNA 7.0T magnetic resonance imaging (MRI) scanner had gained U.S. FDA 510(k) clearance. According to the firm, the system was the world’s most powerful FDA-cleared MRI device available at the time of the announcement. With a magnet approximately five times more powerful than most clinical systems, the SIGNA 7.0T could image anatomy, function, metabolism, and microvasculature in the brain and joints with high resolution and detail. The system also features the organization’s latest SIGNAWorks software platform with state-of-the-art applications, such as deep learning-based tools like AIR x brain for automated slice positioning and Silent MR imaging, enabling seamless protocol translation between GE MR systems.