Canon Medical Systems Corp. (бывшая Toshiba Medical Systems)

2022: NXC Imaging Purchase

On July 18, 2022, it became known that Canon Medical Systems bought NXC Imaging, which supplies medical imaging equipment. Its participants did not disclose the cost of the transaction. Read more here.

2021: Establishing a Medical IT Solutions Division

At the end of July 2021, Canon Medical Systems announced the creation of a new development unit information technology in the field. As health care part of the reorganization, the Vital Images subsidiary was transferred to the Canon Medical brand. More. here

2020: Creation of a joint company with R-Pharm

On June 22, 2020, it became known about the creation of a joint venture between R-Pharm and Canon Medical Systems. It will supply and service Canon diagnostic medical equipment in Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation, Tajikistan, Turkmenistan and Uzbekistan. Read more here.

2019: Canon bought MRI scanner reel developer

In early November 2019, Canon acquired a majority stake (70%) in QED. It is planned that QED will retain the current name and become an autonomous subsidiary of Canon. The MRI scanner reel maker's headquarters will remain at its current location in Mayfield Village (US). Read more here.

2018

Canon Medical Systems bought Fysicon

On March 7, 2018, Canon Medical Systems announced the acquisition of Fysicon, a Dutch medical technology manufacturer. Financial details of the deal were not disclosed. Read more here.

Billions of dollars in debt repayments

In January 2018, the Japanese company Canon announced that it continues to repay the debts of the medical division of Toshiba, bought in 2016.

In 2018, Canon is going to pay off about 200 billion yen ($1.8 billion) of debt owed by the former company Toshiba Medical Systems, which in early 2018 was officially renamed Canon Medical Systems, which is about twice the figure a year ago. Toshiba borrowed from large Japanese banks, including Bank of Tokyo-Mitsubishi UFJ.

Canon notes that the possibility of returning more debt is associated with high incomes of the medical business. What kind of profit is in question is not specified.

Canon pays off billions in debts from Toshiba's medical unit

Meanwhile, Canon raised its preliminary estimate for 2017 by three times, expecting it at 245 billion yen ($2.2 billion), which is 60% higher than 2016. Revenue forecast - 4.08 trillion yen ($36.7 billion; + 20% to sales in 2016). Medical equipment was named one of the drivers of growing revenues at Canon.

As noted by the business publication Nikkei, accelerated debt repayment may be associated with an unfavorable credit rating. In June 2016, the international rating agency Moody's downgraded Canon's credit rating from Aa1 to Aa3, explaining its decision to increase the material base as a result of the purchase of Toshiba assets. Until that moment, Canon remained the only Japanese company with a rating above Aa2 in the Moody's classification.

Canon announced the purchase of Toshiba Medical Systems in 2016 for 665.5 billion yen. By the end of that year, the unit's debts had reached 613.1 billion yen against just 1.5 billion yen 12 months earlier.^[1]

The merger of the medical divisions of Canon and Toshiba was accompanied by criticism of regulators and market participants. The companies had to pay an antitrust fine in China after approving the deal.

2017: Name change to Canon Medical Systems

In early February 2017, it became known about the renaming of Toshiba Medical Systems Corp., which was previously acquired by the Japanese manufacturer of photographic and office equipment Canon, to Canon Medical Systems Corp. The Toshiba deal, which closed at the end of 2016, will have a favorable effect on Canon's earnings.

Toshiba's medical unit, sold to Canon for $5.8 billion, will officially operate under the name Canon Medical Systems Corp. in early 2018.

Canon Medical Equipment

Canon hopes that the new business of manufacturing medical devices such as magnetic resonance imaging and X-ray machines will be one of the key areas and will serve as support for other divisions of the company, including those engaged in the production of digital cameras and office equipment.

In an interview with Nikkei, Canon President Fujio Mitarai said that Toshiba Medical Systems will be renamed, but the company will maintain independence and will not undergo major management changes or staff reductions. Moreover, in the future, Canon Medical Systems may be transferred control of the entire medical business of Canon, Mitarai reported.

With the acquisition of Toshiba's medical assets, Canon expects to return to operating profit growth for the first time in three years. In 2017, Canon expects an increase in operating profit by 11.4% to 255 billion yen ($2.3 billion), which is slightly more than the average forecast of analysts surveyed by Thomson Reuters I/B/E/S (254 billion yen).

In addition to the medical business, Canon was considering investing in Toshiba's semiconductor division. However, at the end of January 2017, Canon CFO Toshizo Tanaka said that it would be difficult for the company to invest in Toshiba's memory chip business, as Canon focused resources on the main business areas that include medical device production.^[2]

2016: Canon buys Toshiba Medical Systems for $6bn

On March 9, 2016, Toshiba Corporation announced the sale of the medical business to the Japanese manufacturer of photographic and printing equipment Canon. The value of the transaction was not officially disclosed, but authoritative media know that we are talking about more than $6 billion.

The division of Toshiba Medical Systems, which produces equipment for computer and magnetic resonance imaging, radiographic systems and other solutions for healthcare institutions, is subject to sale. Initially, dozens of investment firms and competitors Toshiba claimed this asset, but by the last stage of the auction only the British private investment fund Permira remained, as well as the Japanese Fujifilm, Konica Minolta and Canon. The latter won.

Canon buys Toshiba medical business for $6 billion

We have decided to give Canon the exclusive right to negotiate over the sale of our medical unit, Toshiba said in a statement on March 9, 2016.

The company noted that Canon's offer turned out to be the most attractive, since it involves the highest price and an easier transition of the business from one owner to another.

Toshiba did not disclose the terms of the agreement, including its financial side. According to Bloomberg, Nikkei and The Wall Street Journal (WSJ), the cost of selling Toshiba Medical Systems will exceed 700 billion yen ($6.2 billion).

The revenue of this division in the fiscal year closed on March 31, 2015 amounted to about 412.5 billion yen ($3.6 billion), while the market capitalization of the entire Toshiba is measured at 862.8 billion yen ($7.5 billion) by March 9, 2016.

As the WSJ notes, Toshiba Medical Systems brings a stable profit, and, most likely, this will continue to continue. The company decided to sell the medical business in order to focus on key areas of activity (nuclear power, etc.) and improve its financial position, undermined by the overestimation scandal.^[3]

2015: Opening of the Health Technology Center in Kawasaki

In early 2015, Toshiba opened the Healthcare Technology Center in Kawasaki, Japan, making medical development one of its main areas of development.

The main focuses of the center: diagnosis and treatment, prevention of diseases, forecasting the further course of diseases and nursing, as well as promoting a healthy lifestyle and creating a favorable environment for maintaining physical and mental health.

At this time, the medical field is one of the three pillars of Toshiba's business, along with power and data storage. The main focuses of Toshiba's activities within the framework of health projects are: diagnosis and treatment, disease prevention, predicting the further course of disease and nursing, as well as promoting a healthy lifestyle and creating a favorable environment for maintaining physical and mental health.

Toshiba was expected to spend 50 billion yen (more than US $400 million) on research and development in fiscal 2016, up 30% from the current year. In addition, the company will increase the staff working in this area by more than 20% - from 3,000 currently to 3,800 in fiscal 2016. The expansion will also affect the staff of the new Center.

Employees of the Toshiba Center for Health Technology will concentrate on genomic analysis and the creation of biological sensors, which will become a new direction of the company's medical business. In addition to this, research will be conducted in the field of sensory and diagnostic technologies using Big Data analysis methods. The results of these works will become the basis of a new generation of medical technology. In parallel with the development of diagnostic equipment, including MRI machines and ultrasound systems at Toshiba Medical Systems Corporation (TMSC), the company will conduct joint projects with universities and research institutes in Tokyo.

The developments of the Toshiba Health Technology Center will also be applied in Russia. High-tech medical care is becoming more and more affordable for Russians, since the beginning of 2014 it has even been included in the system of compulsory medical insurance. According to the Ministry of Health of the Russian Federation, already in the first half of 2014, more than 80 thousand people received such assistance at the expense of compulsory medical insurance. Toshiba equipment and technologies are actively used in medical centers and hospitals throughout the country, and in the future this direction of development of the company will remain one of the strategic ones.

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