Siemens Healthineers has announced a reorganization along with new annual growth targets after its parent company Siemens said last week its divesting the medical technology business.
Siemens said it plans to reduce its stake in Siemens Healthineers to a significant minority to allow greater capital allocation flexibility. In the medium term it expects to reduce that shareholding to a financial asset.
“Today marks the beginning of the next stage of growth for Siemens. By giving up the controlling majority in Siemens Healthineers, we are focusing on a highly synergistic Siemens portfolio” said Siemens CEO Roland Busch in a statement. “This is a logical next step in executing our strategy of combining the real and the digital worlds, focusing on accelerated profitable growth of our digital businesses, connected and software defined hardware and industrial AI.”
Bernd Montag, CEO Siemens Healthineers, said his company "appreciates the clarity."
"This is good news for Siemens Healthineers, as it continues our journey to becoming a fully independent company, which we started with our IPO in 2018," he said in a statement.
Following the spin-off, Siemens Healthineers said its financial reporting will be structured along three segments: Imaging will focus on disease prevention and detection; a new segment, Precision Therapy, will combine Varian, Advanced Therapies and Ultrasound to focus on treatment; and Diagnostics will "pursue its own strategy," the company said.
For fiscal years 2027-2030, Siemens Healthineers is targeting annual revenue growth of 6-9% from Imaging and Precision Therapy combined, while Diagnostics is expected to improve towards mid-single-digit growth. Overall it translates to a 5-7% growth rate.
