Siemens Healthineers (ранее Siemens Healthcare)

Siemens Healthcare (until 2016 Siemens Healthcare) - from January 1, 2008, the sector (organizational and structural unit) of the German concern Siemens AG. In accordance with the new structure, a sector was formed engaged in the production of medical and diagnostic equipment.

In 2008, the sales volume of the company's sector is about 11 billion euros, the number of employees is about 49 thousand people.

Structure

For 2016, the sector includes the following departments:

• Imaging & IT
• Workflow & Solutions
• Diagnostics

Business in Russia

Main article: Siemens Healthineers Russia

Performance indicators

Main Article: Siemens Healthineers Financial Performance

An article about which products and in which regions the company earns the most.

2021: Siemens Healthineers sales surge and update record

Siemens Healthineers had revenues of nearly €18bn in fiscal 2021, a record high for the company. In comparison with 2020, sales from the German manufacturer of medical equipment rose by 24.5%, and without taking into account fluctuations in exchange rates, there was a 19.3% rise.

A tangible increase in revenue is associated with the purchase, Varian as well as high revenues from the supply of rapid tests to. coronavirus COVID-19 The latter Siemens generated around €1.1 billion in annual revenue for Healthineers.

Most of Siemens Healthineers' turnover still falls on countries in Europe, Africa and the Middle East: in 2021, the company earned 6.78 billion euros there, which is 43% more than a year earlier. In Germany, revenues grew by 100%, to 1.75 billion euros.

In the Americas, annual sales of Siemens Healthineers climbed 13%, topping 6.4 billion euros. USA In they increased by 11%, to 5.47 billion euros. The countries registered Asia Australia a 20 percent growth in turnover, up to 4.82 billion euros, of which almost half (2.35 billion euros) - in. China

In the division for the production of medical imaging equipment in 2021, the financial year had a revenue of 9.5 billion euros against 8.81 billion euros a year earlier. Sales of diagnostic equipment and software rose from 3.92 billion to 5.42 billion euros. In the direction of Advanced Therapies, revenue rose from 1.63 billion to 1.71 billion euros. The reporting also includes the revenue of the previously purchased company Varian - for the year this manufacturer of radiation therapy equipment earned 1.3 billion euros. Varian revenues in 2020 are not indicated for the financial year.

Net profit of Siemens Healthineers at the end of 2021 was 1.75 billion euros, which is 23% higher than profit a year ago.^[1]

Acquisitions of companies

Main article: Acquisitions of Siemens Healthineers

History

2023: Block Imaging Acquisition

On May 24, 2023, the German manufacturer of medical equipment Siemens Healthineers and the American network of non-profit hospitals CommonSpirit Health announced the conclusion of an agreement on the purchase of Block Imaging. Read more here.

2022: Reduced Diagnostic Medical Equipment Business

On November 9, 2022, it became known about the decision of Siemens Healthineers to reduce its diagnostic tools division. The manufacturer linked its decision to rising costs in the supply chain, lack of appliances and inflation, which, in turn, was caused by the consequences of Western sanctions against Russia against the background of a military special operation RUSSIAN FEDERATION on. To Ukraine

Siemens, whose portfolio includes laboratory instruments and assays, as well as information technology and automation services, has set a goal of saving €300 million in the coming years, in addition to significantly reducing the complexity of various product lines.

{{quote 'In the field of diagnostics, we came to the conclusion that dramatically changed macroeconomic conditions require immediate and comprehensive measures! These "externally adverse factors" "substantially outweighed the significant operational improvements we have made," CEO Bernd Montag said on the company's fiscal fourth quarter 2022 earnings call. }} The plans include cutting jobs and abandoning some geographic markets and instead focusing on more strategically important regions, according to Reuters sources.

The company also downgraded its diagnostic unit revenue estimates and now forecasts revenue growth of 3% to 5% per year through 2025, down from 4% to 6%. And although Siemens hopes to save €300 million a year through cuts, to achieve this goal, the medical giant will have to incur one-time costs, which can range from €350 to €450 million, Montag said.

Another component of the plan is built around the delayed launch of Atellica CI 1900 laboratory research equipment. The device under development was introduced in early 2022 and is intended to become a more standardized replacement for many devices in the company's portfolio. According to Montag, its release was partially postponed due to the COVID-19 pandemic, but full international implementation is planned in 2023.^[2]

2020

Siemens Healthineers top manager goes on trial after handing secrets to rival

At the end of November 2020, Siemens Healthineers sued one of its former top managers because it stole trade secrets related to the development of heart catheters. The company claims that its former vice president Anthony Medigo violated a confidentiality agreement when he moved to NuVera Medical, a competitor to Siemens Healthineers. Read more here.

Issue of new shares worth €2.73 billion to buy Varian

In early September 2020, Siemens Healthineers announced that it had issued new shares worth 2.73 billion euros ($3.22 billion) to ensure the planned takeover of the American company Varian. In a statement, management said the company issued 75 million shares at 36.40 euros each. The total amount collected does not include deductions for fees and expenses.

As Reuters notes, Siemens Healthineers decided to buy Varian Medical Systems for $16.4 billion to become the world leader in cancer diagnosis and radiation therapy. Gross output from the issue reaches €2.73 billion without deduction of fees and will be used in part to refinance the Varian acquisition.

Siemens Healthineers is preparing a two-stage capital increase to raise a total of €7.5 billion through a share offering, sources told Reuters news agency. Siemens Healthineers later said the accelerated bookbuilding process for institutional investors would increase Healthineers' share capital to 7.5%.

The shares will be admitted to trading on the Frankfurt Stock Exchange, which are expected to start on September 8, 2020.^[3]

Wall Street recommends investors buy shares of Siemens Healthineers and attributes this to three major factors:

• The fact that the company issued negative-yielding debt is not only financially beneficial to Siemens, but also testifies to the quality of the company's revenues and the bond market's confidence in it.
• Siemens has an excellent history of creating free cash flow (FCF), and its dividends are very well covered.
• Management has restructured the company for its growth and it has good growth prospects.

2019

Expensive hours and golf club membership: GE, Philips and Siemens employees told how they bribe doctors for supplying medical equipment

In mid-June 2019, employees of GE, Philips and Siemens testified in a Chinese court about bribing low-paid hospital employees for purchasing medical devices of these companies. Read more here.

FBI investigates bribery of officials when selling medical equipment

On May 17, 2019, it became known that the FBI was investigating over alleged bribes that were given by Johnson & Johnson, Siemens, General Electric and Philips to  sell their medical equipment in Brazil. Read more here.

2018

Opening of a new headquarters in Erlangen

On October 5, 2018, Siemens Healthineers held the official opening of the company's new corporate office in Erlangen (Germany), attended by politicians and prominent healthcare figures .

Attracting investment and building an office building on Karlheinz-Kaske Strasse took two years, and the first talk about a new office began to start back in 2014. Spacious rooms with modern design and more than 120 differently designed conference rooms have become a functional working environment, ready to accommodate up to 1000 employees. The building will be used by the company's management board and its main divisions, including human resources department, Financial Support and Quality Control, as well as Communication and Marketing divisions.

Employees of Siemens Healthineers have been actively involved in the development of the concept of the new office from the very beginning, as it should be focused on the future and promote cooperation both within the company and beyond - with customers and partners. The new headquarters is seen as a model for the rest of Siemens Healthiners offices around the world. With an open layout and a well-chosen color scheme, the building is focused on teamwork and provides a convenient for communication and an effective working environment. An ordinary open office is complemented by 75 "think tanks," where employees can retire at any time for intensive work without distractions or phone calls. In addition, 14 rooms have been created for small informal meetings and 40 conference rooms for lengthy discussions with guests and colleagues.

Siemens Healthiners is one of the largest German companies and one of the most successful Siemens enterprises. The new office, located in the company's cradle, Erlangen, highlights Siemens Healthiners' inextricable connection with more than 140 years of history. Siemens board member and chairman of the board of Siemens Healthineers Michael Sen noted that the new headquarters forms a positive working environment and should attract new investments both in the company itself and in this region of Germany - in the form of research and educational medical institutions, clinics and providers of medical services and technologies.^[4]

Entering the Frankfurt Stock Exchange; 4.2 billion euros raised

On March 16, 2018, the German industrial concern Siemens brought its medical unit to the stock exchange. On the first day, in the status of a separate public company, Siemens Healthineers quotes rose 7%, but the IPO was not as large as expected.

Siemens Healthineers' float price on the Frankfurt Stock Exchange was €28 per share - in the lower half of the forecast range of €26-31. At the same time, at the opening of trading, the securities were traded at 29.42 euros. By 17:00 Moscow time, the value of securities exceeded 30 euros.

As part of the IPO, about 150 million shares (approximately 15% of the total) of the company were sold at a price of 28 euros apiece, which raised 4.2 billion euros, and the market capitalization of the German manufacturer of medical devices exceeded 30 billion euros.

Reuters notes that an estimate of up to 40 billion euros was initially expected. Investor restraint is due to uncertain prospects for sales of immunoassay and clinical biochemistry research equipment, Atellica as well as some market instability, the agency explains.

The discount is justified because investors are skeptical about how successful the rollout will be. The previous five Siemens diagnostic platforms have consistently lost market share over the past couple of years, said Sebastian Buch, stock manager at Union Investment, which was among the 10 largest shareholders in the IPO.

According to Bloomberg, about 30% of Siemens Healthineers shares are owned by German investors, 26% and 21% by British and American, respectively. Another 10% of the securities are distributed among individual investors. At the same time, Siemens remained the majority shareholder of its medical business.

The funds raised at Siemens Healthineers are planned to be directed to business development, including the promising field of molecular diagnostics, as well as the acquisition of startups operating in the field of medical technology.^[5]

The start of electronic trading in shares of Siemens Healthineers and other companies at the Xetra site was postponed for an hour and a half due to technical problems. The company was assisted in the placement by banks Goldman Sachs,  Deutsche Bank and J.P. Morgan

Siemens Healthineers' IPO was the second largest for German companies since 2000, one To Europe of the largest in 2018 and the largest in healthcare. Previously, a record placement was carried out by the medical company HCA Holdings, which raised about $3.8 billion in 2011.

Siemens' plans to take its medical arm public were first announced in 2016. Then many analysts predicted that as part of the IPO, the company could raise about 9 billion euros.

The chairman of the supervisory board of Siemens Healthineers, Michael Sen, said he was pleased with the value of the shares on the first day of trading, and noted that the growth of the market for laboratory diagnostics equipment should help the company increase its share in it.

In addition, Siemens Healthineers expects to achieve accelerated business growth by communicating the increase in global healthcare costs caused by the aging population as a whole, the increasing prevalence of chronic disease and increased access to care.

Siemens Healthineers CEO Bernd Montag said the initial public offering of the securities will allow the manufacturer to focus on being a "clean medical technology company" and also give additional flexibility and the ability to build capital for any future acquisitions in the market.

Some observers admit that the parent Siemens may spend part of the funds raised from the IPO on the development of other less efficient divisions.^[6]

Penalty for dishonest after-sales care of CT and MRI equipment

In mid-January 2018, it became known that the Korea to trade South Korea Fair Trade Commission (FTC) fined the medical unit of the German industrial giant, Siemens accusing the company of abusing its dominant position in the aftermarket CT and MRI equipment.

In a statement circulated by the regulator, excerpts from which are cited by Korea Biomedical Review, it is reported that Siemens Healthineers provided a password for entering the service mode of CT and MRI devices for free only to hospitals served by the service service of Siemens itself. Those who resorted to the help of third-party vendors could only get a password for a fee.

The antimonopoly service also notes that in December 2014 and May 2015, Siemens Healthineers sent emails to local medical institutions, which in an exaggerated manner spoke of the danger of involving independent companies in equipment maintenance. In addition, the regulator claims that in the United States, Siemens provides a service password for free to all medical institutions using its CT and MRI devices.

Over the past four years, Siemens has led the CT and MRI equipment market in South Korea, and as of 2016, more than 90% of Siemens tomographs were served by the company's own service service, Yonhap reports citing the FTC.^[7]

For violations of the Fair Trade Act, the Commission fined Siemens, Siemens Healthcare and Siemens Healthineers a total of 6.2 billion won ($5.7 million). In addition, the German giant is ordered to provide a password for entering the service mode of CT and MRI devices to all medical organizations free of charge.

Siemens disagreed with the regulator's claims and said it planned to file an administrative lawsuit against the Commission's decision. The company also denies that it provides a service password for free in the United States.^[8]

2017

Siemens Head: Healthiners May Outperform Us in Business Size Over Time

In December 2017, it became known that Siemens Healthiners could one day overtake its parent company in size and budget. According to Siemens CEO Joe Kaeser, this will be possible thanks to the upcoming 2018 branch of a subsidiary that will focus on healthcare.

In an interview with the German edition of Manager Magazin, Kaeser talked about the future of Siemens after the proposed initial placement of shares in the new company on the stock exchange, which should occur in the first half of 2018. Kaeser directly answered questions about the possible collapse of Siemens after the stock went public.

In the future, our successors will not reason who founded what and who destroyed; the main thing is whether we can ensure the competitiveness of the company for the next generation, "says Kaeser. - We are not going to destroy anything, we are creating new companies.

Kaeser said Siemens should not monopolize the market. The new company, Healthiners, may become more than the main industrial complex, but it is the weakening of central control that should contribute to its heyday.

Siemens Healthiners will be Kaeser's most radical step in restructuring the company since taking over as CEO in 2013. Kaeser has already sold the rights of a number of other divisions, but in the case of Siemens Healthiners, the parent company will retain a controlling stake - at least in the near term.

Healthcare is considered the most profitable area of ​ ​ Siemens' work. The allocation of a separate company to allow more investment in this rapidly updating sector, and will also help increase the market value of this division, which by December 2017 is about $47 billion.

Perhaps one day, not Siemens will control Healthiners, but exactly the opposite, says Kaeser.[9]

Using technology to speed up MRI

In October 2017, the German medical device manufacturer Siemens Healthineers acquired a license to use compressed sensing technology, which significantly reduces the patient's stay in a magnetic resonance imaging (MRI) scanner - from 45 to several minutes or even seconds - without compromising the quality of research. Read more here.

Release of updates that fix vulnerabilities in PET scanners

On August 7, 2017, Siemens Healthineers announced a software update for positron emission tomography scanners. The company fixes vulnerabilities that hackers could theoretically exploit to break into this medical equipment.

In early August 2017, the U.S. Department of Homeland Security issued a warning that "attackers with even a small skill can exploit vulnerabilities" in Siemens medical imaging devices running on outdated operating systems.^[10]

In the case of Siemens technology, it runs Windows 7. Vulnerabilities in it were estimated at 9.8 points out of 10 possible on the Common Vulnerability Scoring System (CVSS - a standardized way to obtain a quantitative assessment of the severity of a particular vulnerability). The company said no signs of attacks exploiting these vulnerabilities were found.

Based on existing device controls and operating conditions, we believe that vulnerabilities do not carry much risk to patients. To date, there have been no reports of identified vulnerabilities being exploited in any system in the world, Siemens said in a statement.

The company plans to release a vulnerability-fixing software update for its PET scanners in late August 2017.

Reuters notes that medical imaging equipment, including PET scanners, are usually not to the Internet connected directly, but are connected to the IT systems of medical institutions that can be infected, for example, through an email with an attached virus. As a result, hackers can gain remote access to medical equipment, which is very easy for them, said independent computer security analyst Great Britain Graham Cluley.

According to him, hospitals as a whole are poorly protected from cyber fraud due to insufficient funding and problems with the compatibility of old equipment with new OS.^[11]

Investment of $300 million in the center for the development of equipment for laboratory diagnostics

On January 24, 2017, Siemens Healthineers announced plans to invest about $300 million in a research, development and production center for laboratory diagnostics located in Walpole, Massachusetts, USA. The investments will be distributed over four years.

The expansion of the Walpole facility fits into the company's strategic growth plans and allows us to increase production capabilities in the United States - in the world's largest healthcare market, says Siemens Healthineers CEO Bernd Montag. - Laboratory instruments and reagents developed and manufactured at Siemens Healthineers in Walpole are used by patients and medical institutions around the world.

By early 2017, the Siemens Healthineers centre in Walpole employs more than 700 people. There are made sets of reagents used in automatic immunochemical analyzers of the Advia Centaur family, as well as consumables for branded devices for determining the molecular and gas composition of blood. In addition, this plant will produce reagents for the immunological module of the Atellica system, which by early 2017 is being certified by the Food and Drug Administration (FDA).

Research and development work at the Walpole facility has brought new diagnostic solutions to market to help doctors treat and prevent various diseases, Siemens Healthineers said in a statement.

In the summer of 2017, the company intends to begin updating and expanding the complex, located on an area of ​ ​ almost 46.5 thousand square meters. In particular, new production workshops, warehouses, offices and laboratories will be built. First, at least 400 work items will be created at the site, and then another 300. The company is going to increase the number of workers at the enterprise to 1300-1600 people by 2026.^[12]

2016

Collaboration with IBM

On October 11, 2016 Siemens , Healthineers IBM and announced the launch of a strategic collaboration in the area. health care Together, the companies will help healthcare facilities manage patient flows more effectively.

As part of the five-year agreement, Siemens Healthineers and IBM intend to facilitate the provision of price-quality services to patients suffering from severe chronic diseases whose treatment costs are extremely high.

The result of the cooperation, as partners hope, should be that medical organizations will be able to better understand the nature of the changes taking place in the healthcare sector, strengthen the fight against the growing prevalence of chronic diseases and more actively use the capabilities of computer technology.

Siemens Healthineers and IBM say that the announced partnership of its kind was the first for companies and allows the German vendor to enter the PHM (Population Health Management) systems market.

Siemens Healthineers will have access to technologies built on IBM Watson's supercomputer, such as IBM Watson Care Manager. This cognitive solution allows you to link different types of clinical and personal data, analyze them, make recommendations to patients with chronic diseases and carefully monitor their health.

Siemens Healthineers will offer PHM solutions and services from IBM Watson Health, as well as consulting services, helping healthcare facilities transition to new healthcare technologies.

It is worth saying that Siemens and IBM have many years of experience working together in different markets. In particular, IBM uses solutions from Siemens Building Technologies, Siemens PLM Software and Siemens Digital Grid.^[13]

Construction of a facility in China for the production of diagnostic equipment

In September 2016, Siemens Healthineers announced the expansion of production operations in China. The company will build an enterprise in the country to produce equipment and substances for diagnostics in laboratory conditions.

Shanghai was chosen as the opening place for the Siemens Healthineers production site. The new facility, as noted in the company, will open up production opportunities for it in the Celestial Empire to create biochemical and immunochemical reagents.

This investment demonstrates the company's continued commitment to meeting growing needs in China and in healthcare markets around the world, "said Franz Walt, President of Laboratory Diagnostics at Siemens Healthineers.

As of September 2016, China is the second largest market for Siemens Healthineers. George Chan, President of the Chinese representative office of the company, noted the following:

The opening of this enterprise strengthens our ability to support Chinese healthcare reform as we offer better treatment outcomes at a lower cost to our clients.

After the completion of the project for the production of laboratory diagnostic equipment and substances in Shanghai, Siemens Healthineers plans to attract hundreds of employees there. The estimated timing of the completion of the project has not been reported.

According to a report by Reportstack researchers published in September 2016, there are about 200 companies in China (including Siemens Healthineers) that own independent clinical laboratories. According to the results of 2015, the volume of this market was estimated at 6.5 billion yuan (about $974 million), which is 37.4% more than a year ago. By 2020, an increase of 30-40% is expected^[14]

Renaming to Siemens Healthineers

On May 4, 2016, Siemens Healthcare announced a rebranding that could precede the separation of the German industrial giant's division into an independent company, followed by going public, reports The Economic Times.^[15]

Instead of Siemens Healthcare, the company will operate under the Siemens Healthcare name, which "reflects its innovative spirit and technical expertise in the healthcare industry," the medical device manufacturer said in a statement.

The renamed company also intends to provide consulting and digital services, as well as management services and new technologies for the rapidly growing market for medical, preventive and molecular diagnostics.

In March 2016, the head of Siemens Healthcare, Bernd Montag, said that the company was "hungry" for acquisitions that would be consistent with its strategy of focusing on consumer technology. The media have repeatedly rumored about Siemens Healthcare going public, but by May 2016 they had not been confirmed.

At the same time, in March, Montag said that Siemens Healthcare was in the process of separating from the concern into a separate legal entity.^[16]

Cooperation with the University of Iran in the study of the brain

In May 2016, it was announced that Siemens Healthcare and the Medical University of Tehran had agreed to collaborate on brain research.

"In particular, morphological and functional disorders of the brain will be investigated," Yashar Azad, spokesman for Siemens Corporation in Iran, told Trend on Thursday.

Experimental studies, he said, will be attended by leading institutes in the field of magnetic resonance imaging (MRI) in Europe and Iran.

A memorandum of understanding was signed between the brain laboratory of Tehran University and Siemens Healthcare on May 3, 2016. Siemens became one of the first leading European companies to resume operations in Iran after the signing of the Joint Comprehensive Plan of Action (JCPOA), which ended international sanctions against the Islamic Republic^[17].

Cloud creation for the German Radiology Network

On April 18, 2016, Siemens Healthcare announced the development of electronic health software for the German Radiology Network, which is managed by Curagita Holding.

Together, Siemens and Curagita Holding intend to create and implement new medical software solutions for the 100 medical institutions covered by the German Radiological Network. The first pilot project will be tested at radiology and nuclear medicine centers in Hamburg and Munich starting in mid-2016. Read more here.

Development of 3D imaging technology

In late February 2016, Siemens Healthcare introduced software to create realistic 3D models of human body structures. The technology, which the company calls cinematic rendering, allows you to visualize the internal structure of the body on a computer with unprecedented accuracy.

The software developed at Siemens Healthcare forms a visual 3D representation of human insides based on X-rays, magnetic resonance and computed tomography. Special software algorithms simulate the complex interaction of photons with a scanned anatomical image of the body, resulting in a natural representation of certain structures of the body.

Siemens Healthcare says that the idea of ​ ​ creating such a technology for medical purposes came from cinema, where the use of realistic computer animation has become commonplace.

The researchers hope that accurate 3D modeling of different parts of the human body will help surgeons plan operations, as well as improve the interaction between doctors and patients in general.

By the end of February 2016, cinematic rendering is not authorized for use in medical facilities as a method for visualizing data, however, testing of the technology is in full swing. A large number of patients and scientists around the world voluntarily joined her trials. Among them is Professor Franz Fellner, who heads the Upper Austria Medical Association.

The technology being promoted by Siemens Healthcare will be particularly useful for surgeons specializing in musculoskeletal diseases, he said. Cinematic rendering can give a broader idea of ​ ​ the nature of complex fractures in 3D format, and is also useful in planning craniofacial operations, vascular operations and neurosurgery, Fellner noted.^[18]

1975: Computed tomograph

In 1975, Siemens introduced Siretom, the first CT scanner. The device was released just a year after showing the first tomographic image of a human head at a Chicago show.

The 1960th

The world's first "real-time ultrasound"

In the 1960s, Siemens engineer Ralph Soldner developed the Vidoson, the world's first real-time ultrasonic scanning device. With the help of this technology, doctors were able to observe the movements of internal organs on the monitor screen in real time.

Renaming to Siemens "Medical Technology Division

As part of the large Siemens AG corporation, SRW was renamed Siemens "Medical Technology Division in 1969.

1958: World's first Siemens Elema implantable pacemaker

1932: Transformation into Siemens-Reiniger-Werke (SRW)

In the 19th and early 20th centuries, the company underwent many structural changes, mergers and acquisitions, as a result of which Siemens-Reiniger-Werke (SRW) emerged in 1932.

1896: Production of the first X-ray apparatus

In 1896, just a year after Wilhelm Gentgen discovered X-rays, Siemens produced the first industrial X-ray machine for medical diagnostics.

1847: Establishment of Siemens & Halske

The history of Siemens Healthcare began in Berlin in the mid-19th century, as part of the company's business known today as Siemens AG. Siemens & Halske was created by Werner von Siemens and Johann Georg Halske on October 12, 1847. The basis for creating a business was new telegraph technologies, which made it possible to abandon the use of Morse code.

The company was later called Telegraphen-Bauanstalt von Siemens & Halske. The company was equipped with the necessary equipment and specialized in medical technologies.

Competitors

Siemens Healthcare's main competitors for 2016 are GE Healthcare, Philips, Toshiba, Shimadzu in the diagnostic imaging equipment segment and Abbott and Roche in the laboratory diagnostics equipment market.

Notes