07.01.06
$9.2 Billion ($74B Total)
Key Executives:
Klaus Kleinfeld, President and CEO, Siemens AG
Heinz-Joachim Neuburger, CFO, Siemens AG
Erich R. Reinhardt, President of Siemens Medical Solutions
Thomas N. McCausland, President, US Operations (SMS)
Hermann Requardt, Executive Management Board Member (SMS)
Klaus Stegemann, Executive Management Board Member (SMS)
No. of Employees: 439,400
World Headquarters: Munich, Germany
Last year marked a time of transition for German electronics giant Siemens AG, as Klaus Kleinfeld took over for Heinrich von Pierer as CEO of the parent company in January 2005. In the end, the medical products arm of the company fared well amid these changes, seeing its sales rise a steady 6% in 2005 with the help of its molecular imaging field.
Siemens Medical was bolstered in fiscal 2005 with the purchase of Knoxville, TN-based CTI Molecular; the acquisition later pushed the company to form a new molecular imaging division as part of one of the world’s largest medical imaging companies. Before the purchase of CTI Molecular, the current subsidiary of Siemens was the market leader in positron emission technology (PET) products and services.
Along with the vitalized new molecular imaging business, the company’s diagnostics imaging solutions unit was a strong driver for Siemens with the help of new product releases.
Medical Solutions was also strengthened by the purchase of Sensant Corp. of San Leandro, CA for an undisclosed amount in the second half of 2005. The purchase allows Siemens to develop advanced Capacitive Microfabricated Ultrasound Transducer (CMUT) technology, and commercialize next-generation transducers based on this innovative technology.
While revenues were up, profits dropped 8% in 2005 to $1.2 billion. The drop was due to $145 million in gains for portfolio transactions early in fiscal 2004, primarily due to the sale of Medical Solutions LSS (Life-cycle Solution Service) business.
Overall, Siemens AG’s revenues rose 5% to $90.9 billion. (Note: This number doesn’t include the mobile device unit that was sold off in June 2005.)
Strategies employed in 2005 appear to be in use again this year. The medical unit of Siemens continued to buy companies in fiscal 2006 when it bought Los Angeles, CA-based Diagnostic Products Corporation (DPC) for $1.9 billion in April 2006. DPC is a manufacturer of immunodiagnostic kits to diagnose conditions including cancer, heart disease and pregnancy.
Siemens officials said the purchase of DPC complements the imaging and healthcare IT products. “We are impressed by DPC’s track record in developing a globally leading immunodiagnostics business and by the quality of its people. The potential is huge to drive groundbreaking innovations by combining DPC’s in-vitro diagnostics leadership with Siemens’ leading position in medical imaging and healthcare IT solutions,” said Erich R. Reinhardt, CEO of Siemens Medical Solutions. “Together, both companies will be empowered to continue to revolutionize the prevention, diagnosis, treatment and management of disease.”
In the second quarter of 2006, the Medical segment grew 9% to $2.5 billion as the diagnostics imaging solutions segment contributed to sales and an 11% rise in profits to $312 million. Revenues also continued to increase in the Asia-Pacific region.
In 2005 and early 2006, Siemens introduced several new products, including Encompass II release for the ultra-premium Acuson Sequoia ultrasound platform and the Encompass III release on the Acuson Sequoia C512 ultrasound platform, along with the NaviVision, a new system that allows more room for the operating room team.
The company also had several collaborations, including one with Berlin, Germany-based Schering AG to explore the potential of Siemens Dual Source computed tomography (CT) technology implemented with the Somatom Definition in combination with Schering’s CT imaging agent, Ultravist; with Hopkinton, MA-based EMC Corporation to offer the full range of EMC network storage systems for the healthcare market; and combining with BrainLAB of Munich, Germany on a surgical C-arm and an optical 2D/3D navigation unit into a common platform.
The company received FDA 510(k) clearance for the MVision Megavoltage Cone Beam (MVCB) imaging package, which makes it possible for the megavoltage source used for treatment to also create a 3D image of the patient, enabling clinicians to see inside the patient at the most appropriate moment. This past April, the company received PMA approval to market the Mammomat Novation (DR) for use in medical facilities with full field digital mammography system while mobile.
In the second quarter of 2006, Siemens Medical Solutions USA, a subsidiary of Siemens Medical Solutions, was included in an indictment on federal fraud charges relating to a $49 million radiology equipment contract that required minority business participation.
The contract was awarded during the construction of Cook County’s (IL) new Stroger Hospital. According to the US Justice Department, the parties allegedly formed a sham joint venture with a minority business enterprise (MBE) to successfully bid on the public contract in 2000, and the employees allegedly schemed to cover up the initial fraud when the contract was challenged by a competitor in a federal court lawsuit.
Key Executives:
Klaus Kleinfeld, President and CEO, Siemens AG
Heinz-Joachim Neuburger, CFO, Siemens AG
Erich R. Reinhardt, President of Siemens Medical Solutions
Thomas N. McCausland, President, US Operations (SMS)
Hermann Requardt, Executive Management Board Member (SMS)
Klaus Stegemann, Executive Management Board Member (SMS)
No. of Employees: 439,400
World Headquarters: Munich, Germany
Last year marked a time of transition for German electronics giant Siemens AG, as Klaus Kleinfeld took over for Heinrich von Pierer as CEO of the parent company in January 2005. In the end, the medical products arm of the company fared well amid these changes, seeing its sales rise a steady 6% in 2005 with the help of its molecular imaging field.
Siemens Medical was bolstered in fiscal 2005 with the purchase of Knoxville, TN-based CTI Molecular; the acquisition later pushed the company to form a new molecular imaging division as part of one of the world’s largest medical imaging companies. Before the purchase of CTI Molecular, the current subsidiary of Siemens was the market leader in positron emission technology (PET) products and services.
Along with the vitalized new molecular imaging business, the company’s diagnostics imaging solutions unit was a strong driver for Siemens with the help of new product releases.
Medical Solutions was also strengthened by the purchase of Sensant Corp. of San Leandro, CA for an undisclosed amount in the second half of 2005. The purchase allows Siemens to develop advanced Capacitive Microfabricated Ultrasound Transducer (CMUT) technology, and commercialize next-generation transducers based on this innovative technology.
While revenues were up, profits dropped 8% in 2005 to $1.2 billion. The drop was due to $145 million in gains for portfolio transactions early in fiscal 2004, primarily due to the sale of Medical Solutions LSS (Life-cycle Solution Service) business.
Overall, Siemens AG’s revenues rose 5% to $90.9 billion. (Note: This number doesn’t include the mobile device unit that was sold off in June 2005.)
Strategies employed in 2005 appear to be in use again this year. The medical unit of Siemens continued to buy companies in fiscal 2006 when it bought Los Angeles, CA-based Diagnostic Products Corporation (DPC) for $1.9 billion in April 2006. DPC is a manufacturer of immunodiagnostic kits to diagnose conditions including cancer, heart disease and pregnancy.
Siemens officials said the purchase of DPC complements the imaging and healthcare IT products. “We are impressed by DPC’s track record in developing a globally leading immunodiagnostics business and by the quality of its people. The potential is huge to drive groundbreaking innovations by combining DPC’s in-vitro diagnostics leadership with Siemens’ leading position in medical imaging and healthcare IT solutions,” said Erich R. Reinhardt, CEO of Siemens Medical Solutions. “Together, both companies will be empowered to continue to revolutionize the prevention, diagnosis, treatment and management of disease.”
In the second quarter of 2006, the Medical segment grew 9% to $2.5 billion as the diagnostics imaging solutions segment contributed to sales and an 11% rise in profits to $312 million. Revenues also continued to increase in the Asia-Pacific region.
In 2005 and early 2006, Siemens introduced several new products, including Encompass II release for the ultra-premium Acuson Sequoia ultrasound platform and the Encompass III release on the Acuson Sequoia C512 ultrasound platform, along with the NaviVision, a new system that allows more room for the operating room team.
The company also had several collaborations, including one with Berlin, Germany-based Schering AG to explore the potential of Siemens Dual Source computed tomography (CT) technology implemented with the Somatom Definition in combination with Schering’s CT imaging agent, Ultravist; with Hopkinton, MA-based EMC Corporation to offer the full range of EMC network storage systems for the healthcare market; and combining with BrainLAB of Munich, Germany on a surgical C-arm and an optical 2D/3D navigation unit into a common platform.
The company received FDA 510(k) clearance for the MVision Megavoltage Cone Beam (MVCB) imaging package, which makes it possible for the megavoltage source used for treatment to also create a 3D image of the patient, enabling clinicians to see inside the patient at the most appropriate moment. This past April, the company received PMA approval to market the Mammomat Novation (DR) for use in medical facilities with full field digital mammography system while mobile.
In the second quarter of 2006, Siemens Medical Solutions USA, a subsidiary of Siemens Medical Solutions, was included in an indictment on federal fraud charges relating to a $49 million radiology equipment contract that required minority business participation.
The contract was awarded during the construction of Cook County’s (IL) new Stroger Hospital. According to the US Justice Department, the parties allegedly formed a sham joint venture with a minority business enterprise (MBE) to successfully bid on the public contract in 2000, and the employees allegedly schemed to cover up the initial fraud when the contract was challenged by a competitor in a federal court lawsuit.