Headquarters: Andover, Mass., USA and Best, the Netherlands
President & CEO: Steve Rusckowski
Number of employees: approx. 33,000
Sales in 2006: EUR 6.7 billion Development and manufacturing sites: The Netherlands, Germany, Finland, Israel and USA Philips medical activities date back to 1918, when it first introduced a medical X-ray tube, and 1895, after it bought CHF Muller of Hamburg, which manufactured the first commercial X-ray tube. By 1933, the company was manufacturing medical X-ray equipment in Europe and the United States. Today, Philips Medical Systems is a global leader in diagnostic imaging systems, healthcare information technology solutions, and patient monitoring and cardiac devices. Philips also provides customer services such as financing, consultancy and maintenance & repair. Philips is now among the top three in the Medical Systems market alongside General Electric (GE) and Siemens. It’s current activities can be divided in three businesses: Imaging systems (with total sales of EUR 2.7 billion in 2006), Information, Ultrasound and Monitoring Solutions (with total sales of EUR 2.2 billion in 2006) and Customer Services (with total sales of EUR 1.8 billion in 2006). Between 2000 and 2003, Philips doubled the size and scope of its Medical Systems business through approximately EUR 5 billion in acquisitions to position the company as a global player in this market. Philips acquired ATL Ultrasound (1998), ADAC Laboratories (November 2000), Agilent Technologies Healthcare Solutions Group (November 2000), Marconi Medical Systems (October 2001). In August 2005, Philips completed an acquisition of Stentor Inc., a leader in the distribution, management, and storage of digital medical images. The acquisition is designed to strengthen Philips position as a primary supplier of technology to the Healthcare Information Technology (IT) market. As a result of this acquisition, Philips now ranks globally as a global leader in picture archive and communications systems (PACS). In 2006 Philips continued with acquisitions in the healthcare business; after the acquisitions of Massachusetts based Lifeline Philips acquired two more US companies: Witt Biomedical, the largest independent supplier of hemodynamic monitoring and clinical reporting systems used in cardiology catheterization laboratories (Cath Labs), and Intermagnetics. The last company develops, manufactures and markets high-field superconducting magnets used in Magnetic Resonance Imaging (MRI) systems and is viewed as the technological innovator in this market. Intermagnetics also provides specialized MRI compatible patient monitoring devices and Radio Frequency (RF) coils that are predominantly supplied to hospitals and independent imaging centers. One year later, in 2007, the personal emergence response company Health Watch was added to its Consumer Healthcare business. The acquisition of Health Watch was a further step for Philips in building up its presence in the consumer healthcare market – a business-to-consumer market, where consumers generally purchase healthcare products and services. Health Watch added over 100,000 US-customers to Philips Lifeline's existing base of more than a half a million subscribers in North America, thereby further expanding Philips' presence in the region’s personal emergency response market. More recently Philips’ Healthcare Informatics business was strengthened by the acquisition of Texas, US, based company XIMIS. In the meantime the position in the emerging markets was strengthened by a joint venture with Chinese partner Neusoft and the acquisition of the Brazilian company VMI. Through these acquisitions, Philips has also been able to expand in the key North American market, which now accounts for approximately 50 percent of the division’s sales (Europe and Africa: 29 percent, Asia: 17 percent, Latin America: 4 percent). Philips has also been able to round out its diagnostic imaging business with patient monitoring, resuscitation and patient information management products. |