Background Information on Philips Healthcare’s Emerging Markets Business

The combination of increasing wealth along with growing population size will result in a dramatic increase in the demand for quality healthcare in emerging markets. Based on its long presence and established market positions, Philips Healthcare is achieving strong organic growth in these markets whilst also increasing its manufacturing footprint and local expertise through acquisitions and research agreements.

Acquisitions

Since 2007 Philips has accelerated its acquisition of healthcare companies in emerging markets:

Meditronics, November 2008

• Leading manufacturer of General X-ray systems targeting the economy segment of the Indian market
• The Indian economy segment is the one of the fastest growing segment of the General X-Ray market, with industry consensus anticipated annual growth rates of more than 10% in coming years

Alpha X-ray Technologies (Alpha), September 2008

• Leading manufacturer of Cardiovascular X-ray systems targeting the economy segment of the Indian market
• The economy segment is the fastest growing segment of the global Cardiovascular X-ray market, with industry consensus anticipated annual growth rates of 10% to 15% in coming years

Dixtal Biomédica e Tecnologia (Dixtal), May 2008

• Leading Brazilian manufacturer of in-hospital patient monitoring, anesthesia, ventilation equipment and ECGs
• Strong regional distribution network combines with product portfolio that complements Respironics

Shenzhen Goldway Industrial (Goldway), April 2008

• China’s second largest patient monitoring company, already exporting to over 40 countries worldwide
• Domestic patient monitoring market is predicted to grow by seven percent each year until 2013

VMI-Sistemas Medicos (VMI), June 2007

• Leading Brazilian diagnostic imaging company with a well-established regional distribution network. Developer of analog and digital X-ray, ultrasound, mammography and cath labs
• As a result of investment Philips opened the first MR production facility in LATAM at the VMI’s main production site in October 2008. CT devices  will also be produced locally by the end of the year

In addition, the acquisition of US-based home healthcare company Respironics in December 2007 also had a major impact on Philips Healthcare’s presence in emerging markets. The company has a major manufacturing presence in China, with over 1000 employees based in the country. China is also already the world’s second-largest market for home healthcare.

Research Collaborations

In the past 18 months we’ve initiated research collaborations with several institutions in China and India:

West China Hospital, China
The research agreement with West China Hospital – one of the country's biggest and most advanced hospitals – aims to develop innovative imaging procedures to improve diagnosis and monitoring of major illnesses such as cardiovascular disease and cancer. Philips has also established a joint research laboratory within the Institute of Health Sciences in Shanghai to conduct advanced research in molecular medicine and personalized treatment for patients.

Tsinghua University and Beijing Hospital, China
This collaboration with a top university and renowned hospital is for a five-year imaging research program to establish and optimize a novel MRI screening protocol for the atherosclerotic plaque characterization – the fatty deposits that clog arteries. 

Institute of Health Sciences (IHS), China
Philips and IHS, a renowned medical translational research institute in China, have jointly established a research lab.  The aim of the collaboration is to investigate a novel technique for identifying microRNA biomarkers for acute leukemia.

St. John’s Medical College Hospital, India
St John’s is one of India’s most advanced teaching hospitals with a very strong community health outreach program. Philips is working with the hospital’s cardiology department to analyze the sounds made by the heart, which can help in the diagnosis of a range of heart conditions.