GE Healthcare is a division of General Electric Company (NYSE:GE) which provides medical technologies and services in order to provide more affordable healthcare with quality. GE Healthcare has a well-diversified portfolio which includes 3 verticals - Diagnostic and clinical technologies, IT & solutions and Life Sciences. GE Healthcare's solutions include medical imaging, software & IT, patient monitoring and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance improvement solutions. Over the years, GE Healthcare has seen growth through alliances and acquisitions, which have strengthened its portfolio.
New Technology Launched
Recently, GE Healthcare has launched its first next generation sequencing assay. This assay will be focused on solid tumor targets that are used in clinical trials. The next generation sequencing assay will help researchers to better understand which patients will respond to particular therapies. This will aid researchers to perform better analysis.
Acquisitions and Alliances
Acquisition of Clarient and SeqWright
The first next generation sequencing assay will be offered by Clarient Diagnostic Services, Inc., a GE Healthcare company. In December 2010, GE Healthcare acquired Clarient. Clarient provides medical technologies and solutions for cancer discovery and diagnosis. The acquisition of Clarient has helped GE Healthcare in becoming a leading player in cancer diagnostics.
The launch of the first next-generation sequencing assay is also attributed to another acquisition made by GE Healthcare. GE Healthcare acquired SeqWright, Inc., a research laboratory offering biotechnology services like genomic services, nucleic acid sequencing etc. This acquisition helped Clarient in expanding its offerings and solutions.
These acquisitions have helped GE Healthcare in developing accurate and cost effective technologies and added value to its existing pharmaceutical and biotechnology portfolio.
Alliance with iBio, Inc.
In 2012, GE Healthcare announced a global alliance with iBio, Inc. (NYSEMKT:IBIO). iBio provides product solutions and technology for both proprietary and biosimilar products. iBio offers a unique iBioLaunch platform, which is used for development and production of biologics in unmodified green plants. iBioLaunch uses the transient gene expression for the production. Another platform offered by iBioLaunch is the iBioModulator, which is used for providing a significant improvement in vaccine products. It enables the product with higher potency and greater duration of effect.
Recently, the GE Alliance, the alliance between GE Healthcare and iBio has been awarded the contract to design a new plant based manufacturing facility in Brazil. This facility will be designed for Bio-Manguinhos/Fiocruz, which is a techno-scientific unit of the Oswaldo Cruz Foundation (Fiocruz). Fiocruz is an institution of the Brazilian Ministry of Health.
Commenting on the latest development, Olivier Loeillot, General Manager of Enterprise Solutions at GE Healthcare said : "Vaccines are vital in the fight against global disease and we're pleased to be working with Bio-Manguinhos/Fiocruz on this important project. GE Healthcare's global capabilities and industry-leading expertise in biopharmaceutical manufacturing technologies, coupled with iBio's innovative technology and experience in plant-based protein expression, provide a solid foundation for this design project. By working closely with the team at Bio-Manguinhos/Fiocruz we will together design a state-of-the-art, technologically-advanced facility that's ready to meet the vaccine needs of tomorrow."
The alliance between GE Healthcare and iBio is in sync with GE's new initiative -healthymagination. This initiative is focused on reducing cost, increasing access and improving quality in healthcare.
The alliance will drive growth for GE Healthcare as the demand for biopharmaceuticals and vaccines is increasing worldwide, mainly due to ageing population.
Alliance with ServiceSource
In 2011, GE Healthcare made an alliance with ServiceSource (NASDAQ:SREV). ServiceSource, a San Francisco based company is the leading player in recurring revenue management. It offers solutions to companies for maximizing subscription, maintaining and supporting revenue, improving customer retention and increasing business predictability.
While focusing on strengthening its position in Asia, a vastly emerging market, GE Healthcare entered into an alliance with ServiceSource in 2011. The main aim of this alliance was to help GE generate maximum service revenue from Asia. In order to derive maximum revenue, ServiceSource provided a team of specialized sales professionals to help GE's own sales force. This helped GE Healthcare to generate success in Asia.
Recently, building on the earlier success, GE Healthcare has expanded its alliance with ServiceSource to Japan. Including Japan, the alliance will now work together in 11 countries of Asia- Pacific and will help GE Healthcare to increase recurring revenues.
Katsuya Okano, Head of Services, GE Healthcare Japan said "Japan is a highly competitive healthcare market, and the unique insights and disciplined approach to data management from ServiceSource will help us build stronger customer relationships and bottom line results. We're confident their strategic approach to recurring service revenues and highly skilled sales professionals will accelerate our ultrasound renewals performance in Japan."
Growth driven by Alliances and Acquisitions
The various alliances and acquisitions have helped in the growth story of GE Healthcare. GE Healthcare posted revenue of $18.29 billion in 2012, which increased from $18.08 billion in 2012. The profit for GE Healthcare in 2012 is $2.92 billion. The increase in revenue is due to increase in equipment sales. This increase is majorly attributed to international markets, with the strongest growth in emerging markets.