Fujifilm targets healthcare growth after hitachi deal
The company’s European business will be known as Fujifilm Healthcare Europe, while the US unit has been renamed Fujifilm Healthcare Americas. The new company will offer a full line of medical products representing both the Fujifilm and Hitachi portfolios.
According to Toshihisa “Toshi” Iida, president and CEO of the company in Europe, the launch marks the culmination of Fujifilm’s shift from traditional photography and document management businesses to a stronger focus on healthcare. Fujifilm plans to generate 32% of its overall healthcare revenue by 2023, up from 25% in 2020, he said.
Prior to the agreement with Hitachi, Fujifilm’s healthcare business included digital radiography, in which the company was a pioneer in digital radiography, as well as corporate image management with the Synapse 3D line of software. of the society. Other lines of business included female imaging, endoscopy, laboratory diagnostics, and artificial intelligence software.
The agreement with Hitachi complements these activities well and elevates Fujifilm to a single supplier of medical technologies, according to Iida. The Hitachi company offers large-scale scanners like computed tomography and MRI – segments in which Fujifilm has not had a strong presence, as well as technologies like ultrasound that can be incorporated into existing Fujifilm products in the market. field of female imaging, such as mammography systems.
The companies announced the acquisition in 2019 in a deal valued at the time at 179 billion yen (US $ 1.6 billion). The COVID-19 pandemic delayed closing the deal, but it was finally finalized in March 2021.
The July 1 press conference marked a sort of exit party for the new company. Iida gave an overview of the importance of the integrated product line, as well as the breadth of the company’s offerings in other health and life sciences segments like diagnostics – a line of offerings matched by a few other companies. Individual Fujifilm executives then provided updates on the benefits of integration for their individual businesses.
In her presentation, Iida explained the rationale for Fujifilm’s decision to go big on healthcare. Global demand for photographic film peaked in 2001 and has declined since then at a rate of around 20-30% per year, he said.
“Fujifilm has faced a crisis of losing its core business,” Iida said.
Fujifilm has started a process of innovation to emerge from the crisis, he said, with particular emphasis on healthcare and life sciences. In the past three years, Fujifilm has invested more than $ 5.92 billion in healthcare.
As a result, Fujifilm today is a very different company than it was 20 years ago. In fiscal 2001, imaging, which included photo film, digital cameras and photo printing, was the Company’s largest business segment, accounting for 54% of sales. Medical systems generated only about 12% of the company’s overall revenue of 1.440 trillion yen ($ 12.9 billion or 10.9 billion euros).
Today, in fiscal 2021, non-medical imaging represents only 13% of the company’s revenue, with document solutions contributing 39% and healthcare and hardware solutions producing 48% of revenues. sales. Fujifilm’s global revenue increased to 2.13 trillion yen ($ 19.7 billion)
And Fuji’s offerings now span the gamut from prevention to diagnosis to treatment, Iida said. The company’s business extends to life sciences as well – its Fujifilm Diosynth Biotechnologies business is currently engaged in the development of five different vaccines, he said, and Fujifilm this week announced an investment of $ 850 million. dollars to expand its contract manufacturing business and meet the growing demand for biologics and genes. therapies.
As the world begins to emerge from the COVID-19 pandemic, Iida said Fujifilm – with its broadly integrated product portfolio, from life sciences to bedside treatment – is uniquely positioned to grow.
“By integrating Hitachi diagnostic imaging into Fujifilm, we will strengthen ourselves as a key partner in the medical community, and we offer a complete one-stop solution through our strategy of expanding our product portfolio,” said Iida . “Fujifilm is now a unique and total healthcare company.”
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