Siemens to further develop its healthcare business

Munich, Germany, Siemens will further develop its healthcare business, effective May 1, in order to more effectively exploit market and growth potential. With a stronger focus on the different market segments, the various Healthcare Sector customer groups will be even better served. “We have developed our healthcare business very successfully in recent years and are extremely well positioned relative to our competitors. Backed by this strong position, we intend to use our innovative strength to take advantage of further growth opportunities,” said Hermann Requardt, CEO of the Siemens Healthcare Sector. Above-average growth potential is offered both by the emerging markets and the close interconnection of imaging and therapy. In the future, the Healthcare Sector will still consist of three divisions.

Moreover, sales and service will be bundled in one unit. The hearing aid business will be independently managed and directly report to the Sector CEO, enabling it to respond more flexibly in this extremely consumer-oriented business. These structural changes were presented today to employee representatives in the Committee for Economic Policy.

The demands of the various customer groups in the healthcare market have changed over time. Increasingly, large hospitals and clinics are seeking to differentiate themselves through customized high-end solutions, and are experiencing a growing demand for therapy solutions. Smaller hospitals and physicians in private practice, especially in emerging economies with above-average growth, are primarily seeking cost efficient and less complex equipment.

Imaging and Therapy Systems will bring together the business with large-scale medical devices for diagnostic imaging and therapy. The imaging equipment includes computer tomographs, magnetic resonance imaging equipment, and PET systems. Siemens is a market leader in this field. The therapy solutions mainly comprise angiography systems, linear accelerators, particle therapy systems, and minimally invasive procedures. These systems are already closely linked with imaging equipment, in particular in therapy planning. Under the umbrella of the new unit, Siemens intends to better leverage the synergies between the imaging equipment and therapy solutions, thereby becoming a market leader in this field. The CEO of Imaging and Therapy Systems will be Bernd Montag, who currently heads the Imaging & IT Division.

Clinical Products will mainly comprise the business with x-ray and ultrasound equipment that until now has been run jointly with the large-scale medical device business. The market segment for these products has a different dynamic than the market for large-scale medical devices. Besides innovative high-end-solutions, the development of cost efficient, less complex equipment that meets essential customer requirements will be pressed ahead. Siemens wants to further boost growth with these products, particularly in emerging economies. The Clinical Products unit will also comprise the components business. Norbert Gaus, who has been heading up the ultrasound business, will be CEO of Clinical Products.

Diagnostics will continue to comprise the laboratory diagnostics business. This includes equipment for analyzing blood and other bodily fluids as well as the necessary reagents. Siemens is one of the largest suppliers and is the market leader in many segments. Michael Reitermann, previously responsible for the healthcare business of Siemens in the United States, will follow Donal Quinn as CEO of the Diagnostics Division. Quinn is leaving the company for personal reasons.

Sales and service will be managed by the Customer Solutions unit. In addition, the business with hospital information systems will also become part of this unit, due to its highly regional orientation. The CEO of the new Customer Solutions unit will be Tom Miller, who has been heading up the Workflow & Solutions Division.

The Siemens Healthcare Sector (Berlin and Munich) is one of the world’s largest suppliers to the healthcare industry and a trendsetter in medical imaging, laboratory diagnostics, medical information technology and hearing aids. Siemens offers its customers products and solutions for the entire range of patient care from a single source – from prevention and early detection to diagnosis, and on to treatment and aftercare. By optimizing clinical workflows for the most common diseases, Siemens also makes healthcare faster, better and more cost-effective. Siemens Healthcare employs some 48,000 employees worldwide and operates around the world. In fiscal year 2009 (to September 30), the Sector posted revenue of 11.9 billion euros and profit of around 1.5 billion euros. For further information please visit: www.siemens.com/healthcare