07.22.21
Rank: #7 (Last year: #7)
$16.93 Billion
Prior Fiscal: $16.99 billion
Percentage Change: -.01%
No. of Employees: 54,300
Global Headquarters: Erlangen, Germany
KEY EMPLOYEES:
Bernd Montag, Ph.D., CEO
Jochen Schmitz, Ph.D., CFO
Christoph Zindel, Ph.D., Member of the Managing Board
Darleen Caron, Chief HR Officer and Labor Director
Siemens Healthineers opened its 2020 fiscal (which started Oct. 1, 2019) with the completion of two transactions made during the previous period. Its $1.1 billion acquisition of Corindus Vascular Robotics became official Oct. 25, 2019. At the time, its CorPath was the only FDA-cleared and CE-marked robotic system for endovascular coronary and peripheral vascular interventions, according to the organization.
About a week later, the company also finalized its purchase of ECG Management Consultants, a U.S. healthcare advisory firm. The company noted that deal was part of its implementation of the “Siemens Healthineers Strategy 2025” as it addressed the goal to tap into adjacent growth markets.
The Strategy, announced in 2018, was devised to bolster the firm’s market leadership position by 2025 and beyond. It was intended to take advantage of structural growth opportunities within its core markets—identified as Imaging, Diagnostics, and Advanced Therapies (a category that focuses around the shift to minimally invasive, image-guided surgery). In addition, the plan outlines five items that address future initiatives. They are:
ANALYST INSIGHTS: Having now digested the Varian acquisition, it will be interesting to observe Siemen’s next portfolio moves. There are rumors they may divest their Ultrasound business. A year ago, that would have seemed unfathomable. However, with the Varian deal done, they may choose to focus on AI Digital Radiology which is compatible with their cancer initiatives.
With Varian as a leading firm in cancer care, the deal puts Siemens at the forefront of that clinical area. In its 2019 fiscal, Varian reported revenues of $3.2 billion, attributed primarily to technologies for radiation oncology and related software.
“With this combination of two leading companies, we make two leaps in one step: A leap in the fight against cancer and a leap in our overall impact on healthcare. This moment in the history of our companies means more hope and less uncertainty for patients, an even stronger partner for our customers, and for society more effective and efficient medical care. Together with Varian's outstanding and passionate employees, we will shape the future of healthcare more than ever before,” said Dr. Bernd Montag, CEO of Siemens Healthineers AG.
The purchase could have been viewed as the inevitable next step for the two firms. They had enjoyed a well-established partnership that focused on “EnVision”—an initiative to shape the future of cancer treatment through the combination of Varian’s therapeutic systems with the imaging technologies of Siemens Healthineers.
The deal, finalized in April 2021, was certainly a high point for what would have been a rather lackluster year otherwise when speaking from a corporate standpoint. Although, given the circumstances surrounding much of the 2020 fiscal, I think most would be pretty pleased with a flat year. And that’s where Siemens Healthineers finished in terms of revenue growth. The company reported 14.46 billion euros in its 2020 fiscal. In comparison, the 2019 fiscal was just a bit higher with 14.52 billion euros in revenue.
Taking a look at the aforementioned three business units of the firm, Imaging is the leading revenue generator for the company. It was responsible for 9.01 billion euros in the latest fiscal year, an increase of 2 percent over 2019’s figure of 8.94 billion euros. The primary driver of growth was computed tomography, as it was used as part of COVID-19’s treatment regimen.
On the other hand, Imaging experienced a decline of 5 percent; revenues shrunk from 4.13 billion euros in 2019 to 3.92 billion euros in 2020. Also affected by the pandemic, the loss was attributed to the reduction in routine testing volumes.
Advanced Therapies enjoyed a modest 1 percent rise in 2020, increasing from 1.61 billion euros to 1.63 billion euros due primarily to a strong increase from the EMEA region. Companywide, however, no region demonstrated significant growth or decline in revenue greater than 3 percent.
As mentioned, the pandemic did result in certain products experiencing extremely high demand. As such, medical device manufacturers not only tried to churn out their existing offerings that were much needed by front-line healthcare professionals, but also launched new technologies to fulfill specific needs of those battling the virus.
One such offering was its molecular Fast Track Diagnostics (FTD) SARS-CoV-2 Assay test kit used to aid in the diagnosis of infection by the SARS-CoV-2 virus. The product gained FDA emergency use authorization like many new devices launched to address needs created by the pandemic.
The organization also produced a laboratory-based total antibody test (i.e., serology test) to detect the presence of SARS-CoV-2 antibodies in blood. The test, which detected both IgM and IgG antibodies, demonstrated specificity and sensitivity of greater than 99 percent. The test was available on the Atellica Solution immunoassay analyzer, which could run up to 440 tests per hour and enabled a result in just 14 minutes.
Besides addressing the immediate needs of the healthcare community attempting to get a handle on the virus, Siemens Healthineers released a good number of notable products during its 2020 fiscal. This ongoing effort enabled the firm to be in a good position for growth once some sense of normalcy returned.
The Somatom On.site enabled a CT scanner to be brought to a patient’s bedside. This is particularly valuable when a CT scan would involve transporting a patient from a location such as the ICU, which could require multiple healthcare workers to ensure a safe trip. When engaged, the patient’s headboard is removed from the bed and the patient remains in place. Positioning aids, such as the integrated shoulder board and head holder, help stabilize the patient during the scan and enable consistent image quality. Upon image capture, the diagnostic data is sent directly to the radiology department’s picture archiving and control system (PACS).
The firm gained a CE mark for its AI-Pathway Companion Prostate Cancer digital companion to support clinical decision-making. The product suite uses artificial intelligence, including natural language processing, to combine data on a patient’s disease and treatment status, which it then presents via an intuitive graphical user interface.
Another software offering, the teamplay digital health platform, helps to support operational efficiency and clinical effectiveness as it facilitates easy access to solutions for operational, clinical, and shared decision support. The vendor-, system-, and device-neutral platform fosters cross-departmental and cross-institutional interoperability. Healthcare professionals benefit from the solution in connecting devices and systems, in aggregating data from various sources, and in providing advanced analytics to gain actionable insights.
Although granted access to the EU market during the 2019 fiscal, the RAPIDPoint 500e Blood Gas Analyzer was cleared by the FDA during the latest fiscal. A device that could be used for COVID-19 patients, the analyzer generates blood gas, electrolyte, metabolite, CO-oximetry, and neonatal bilirubin results, which are used to diagnose and monitor critically ill patients in the ICU, OR, or emergency room. The unit is equipped with Integri-sense Technology—a comprehensive series of automated functional checks designed to deliver accurate test results at the point-of-care—as well as cybersecurity protection.
Ysio X.pree was introduced as “the world's first intelligent X-ray system with integrated AI for optimizing the daily routine of image acquisition in radiography,” according to the organization. Based on the images from a 3D camera, the AI-based algorithm automatically detects the thorax and thus sets the optimal acquisition area for this—the so-called collimation. The radiation is focused only on the relevant area, and the goal is to acquire an image containing all necessary information with the lowest possible radiation exposure.
Marking the result of a partnership with Bayer, the Imaging System Interface (ISI) for magnetic resonance imaging (MRI) is a joint hardware and software solution. The injector scanner interface synchronizes the MEDRAD MRXperion MR Injection System from Bayer and the Siemens Healthineers MR scanner, thereby overcoming significant challenges posed by the complex process used in conventional contrast-enhanced dynamic MRI.
The ACUSON Redwood is an ultrasound system built on the company’s new platform architecture and offers advanced applications for greater clinical confidence, AI-powered tools for smart workflows, and has shared services cardiology features used by different hospital departments. These capabilities are coupled with a portable and lightweight design.
The Somatom X.cite single-source CT scanner was marketed with the new myExam Companion user guiding system, based on AI. The intelligent user guidance system navigates the user through the workflow using specific questions. myExam Companion makes use of available patient data (sex, height, age), and combines these with additional patient-specific information gathered by asking the user specific questions—for example, about the presence of metal implants or the ability of patients to hold their breath.
$16.93 Billion
Prior Fiscal: $16.99 billion
Percentage Change: -.01%
No. of Employees: 54,300
Global Headquarters: Erlangen, Germany
KEY EMPLOYEES:
Bernd Montag, Ph.D., CEO
Jochen Schmitz, Ph.D., CFO
Christoph Zindel, Ph.D., Member of the Managing Board
Darleen Caron, Chief HR Officer and Labor Director
Siemens Healthineers opened its 2020 fiscal (which started Oct. 1, 2019) with the completion of two transactions made during the previous period. Its $1.1 billion acquisition of Corindus Vascular Robotics became official Oct. 25, 2019. At the time, its CorPath was the only FDA-cleared and CE-marked robotic system for endovascular coronary and peripheral vascular interventions, according to the organization.
About a week later, the company also finalized its purchase of ECG Management Consultants, a U.S. healthcare advisory firm. The company noted that deal was part of its implementation of the “Siemens Healthineers Strategy 2025” as it addressed the goal to tap into adjacent growth markets.
The Strategy, announced in 2018, was devised to bolster the firm’s market leadership position by 2025 and beyond. It was intended to take advantage of structural growth opportunities within its core markets—identified as Imaging, Diagnostics, and Advanced Therapies (a category that focuses around the shift to minimally invasive, image-guided surgery). In addition, the plan outlines five items that address future initiatives. They are:
- Utilizing its position in the in-vivo and in-vitro markets to combine data and knowledge around precision medicine and make it relevant for clinical use
- Using data and artificial intelligence to integrate existing and innovative technologies for therapy
- Coordinating and optimizing the patient journey through the healthcare continuum
- Developing a full range of technical, operational, and clinical service offerings that are more effective and efficient by using technologies from Siemens Healthineers
- Continuing to develop and invest in capabilities in artificial intelligence that support the above areas
ANALYST INSIGHTS: Having now digested the Varian acquisition, it will be interesting to observe Siemen’s next portfolio moves. There are rumors they may divest their Ultrasound business. A year ago, that would have seemed unfathomable. However, with the Varian deal done, they may choose to focus on AI Digital Radiology which is compatible with their cancer initiatives.
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
With Varian as a leading firm in cancer care, the deal puts Siemens at the forefront of that clinical area. In its 2019 fiscal, Varian reported revenues of $3.2 billion, attributed primarily to technologies for radiation oncology and related software.
“With this combination of two leading companies, we make two leaps in one step: A leap in the fight against cancer and a leap in our overall impact on healthcare. This moment in the history of our companies means more hope and less uncertainty for patients, an even stronger partner for our customers, and for society more effective and efficient medical care. Together with Varian's outstanding and passionate employees, we will shape the future of healthcare more than ever before,” said Dr. Bernd Montag, CEO of Siemens Healthineers AG.
The purchase could have been viewed as the inevitable next step for the two firms. They had enjoyed a well-established partnership that focused on “EnVision”—an initiative to shape the future of cancer treatment through the combination of Varian’s therapeutic systems with the imaging technologies of Siemens Healthineers.
The deal, finalized in April 2021, was certainly a high point for what would have been a rather lackluster year otherwise when speaking from a corporate standpoint. Although, given the circumstances surrounding much of the 2020 fiscal, I think most would be pretty pleased with a flat year. And that’s where Siemens Healthineers finished in terms of revenue growth. The company reported 14.46 billion euros in its 2020 fiscal. In comparison, the 2019 fiscal was just a bit higher with 14.52 billion euros in revenue.
Taking a look at the aforementioned three business units of the firm, Imaging is the leading revenue generator for the company. It was responsible for 9.01 billion euros in the latest fiscal year, an increase of 2 percent over 2019’s figure of 8.94 billion euros. The primary driver of growth was computed tomography, as it was used as part of COVID-19’s treatment regimen.
On the other hand, Imaging experienced a decline of 5 percent; revenues shrunk from 4.13 billion euros in 2019 to 3.92 billion euros in 2020. Also affected by the pandemic, the loss was attributed to the reduction in routine testing volumes.
Advanced Therapies enjoyed a modest 1 percent rise in 2020, increasing from 1.61 billion euros to 1.63 billion euros due primarily to a strong increase from the EMEA region. Companywide, however, no region demonstrated significant growth or decline in revenue greater than 3 percent.
As mentioned, the pandemic did result in certain products experiencing extremely high demand. As such, medical device manufacturers not only tried to churn out their existing offerings that were much needed by front-line healthcare professionals, but also launched new technologies to fulfill specific needs of those battling the virus.
One such offering was its molecular Fast Track Diagnostics (FTD) SARS-CoV-2 Assay test kit used to aid in the diagnosis of infection by the SARS-CoV-2 virus. The product gained FDA emergency use authorization like many new devices launched to address needs created by the pandemic.
The organization also produced a laboratory-based total antibody test (i.e., serology test) to detect the presence of SARS-CoV-2 antibodies in blood. The test, which detected both IgM and IgG antibodies, demonstrated specificity and sensitivity of greater than 99 percent. The test was available on the Atellica Solution immunoassay analyzer, which could run up to 440 tests per hour and enabled a result in just 14 minutes.
Besides addressing the immediate needs of the healthcare community attempting to get a handle on the virus, Siemens Healthineers released a good number of notable products during its 2020 fiscal. This ongoing effort enabled the firm to be in a good position for growth once some sense of normalcy returned.
The Somatom On.site enabled a CT scanner to be brought to a patient’s bedside. This is particularly valuable when a CT scan would involve transporting a patient from a location such as the ICU, which could require multiple healthcare workers to ensure a safe trip. When engaged, the patient’s headboard is removed from the bed and the patient remains in place. Positioning aids, such as the integrated shoulder board and head holder, help stabilize the patient during the scan and enable consistent image quality. Upon image capture, the diagnostic data is sent directly to the radiology department’s picture archiving and control system (PACS).
The firm gained a CE mark for its AI-Pathway Companion Prostate Cancer digital companion to support clinical decision-making. The product suite uses artificial intelligence, including natural language processing, to combine data on a patient’s disease and treatment status, which it then presents via an intuitive graphical user interface.
Another software offering, the teamplay digital health platform, helps to support operational efficiency and clinical effectiveness as it facilitates easy access to solutions for operational, clinical, and shared decision support. The vendor-, system-, and device-neutral platform fosters cross-departmental and cross-institutional interoperability. Healthcare professionals benefit from the solution in connecting devices and systems, in aggregating data from various sources, and in providing advanced analytics to gain actionable insights.
Although granted access to the EU market during the 2019 fiscal, the RAPIDPoint 500e Blood Gas Analyzer was cleared by the FDA during the latest fiscal. A device that could be used for COVID-19 patients, the analyzer generates blood gas, electrolyte, metabolite, CO-oximetry, and neonatal bilirubin results, which are used to diagnose and monitor critically ill patients in the ICU, OR, or emergency room. The unit is equipped with Integri-sense Technology—a comprehensive series of automated functional checks designed to deliver accurate test results at the point-of-care—as well as cybersecurity protection.
Ysio X.pree was introduced as “the world's first intelligent X-ray system with integrated AI for optimizing the daily routine of image acquisition in radiography,” according to the organization. Based on the images from a 3D camera, the AI-based algorithm automatically detects the thorax and thus sets the optimal acquisition area for this—the so-called collimation. The radiation is focused only on the relevant area, and the goal is to acquire an image containing all necessary information with the lowest possible radiation exposure.
Marking the result of a partnership with Bayer, the Imaging System Interface (ISI) for magnetic resonance imaging (MRI) is a joint hardware and software solution. The injector scanner interface synchronizes the MEDRAD MRXperion MR Injection System from Bayer and the Siemens Healthineers MR scanner, thereby overcoming significant challenges posed by the complex process used in conventional contrast-enhanced dynamic MRI.
The ACUSON Redwood is an ultrasound system built on the company’s new platform architecture and offers advanced applications for greater clinical confidence, AI-powered tools for smart workflows, and has shared services cardiology features used by different hospital departments. These capabilities are coupled with a portable and lightweight design.
The Somatom X.cite single-source CT scanner was marketed with the new myExam Companion user guiding system, based on AI. The intelligent user guidance system navigates the user through the workflow using specific questions. myExam Companion makes use of available patient data (sex, height, age), and combines these with additional patient-specific information gathered by asking the user specific questions—for example, about the presence of metal implants or the ability of patients to hold their breath.