Canon announced today that established its Canon Healthcare USA subsidiary to strengthen its presence in the American medical market.
Through establishing a presence in the market, Canon seeks to accelerate the growth of its overall medical business.
According to a news release, this represents part of a “grand strategic transformation” of the company’s business portfolio. It aims to realize future growth and its latest phase — Phase VI — has an objective to strengthen its competitiveness.
This strengthening extends to computed tomography (CT) and magnetic resonance imaging (MRI). It also centers around diagnostic ultrasound systems and components such as X-ray tubes, X-ray detectors and key MRI components. The company also said it aims to make strides in healthcare IT and in vitro diagnostics.
Canon said it decided to consider the greater Cleveland area as a candidate for establishing the healthcare unit. Cleveland houses the headquarters and factory of Quality Electrodynamics (QED). QED develops and manufactures MRI components and joined the Canon Group in 2019.
How Canon Healthcare USA affects the rest of the company’s operations
The establishment of Canon Healthcare USA means the company will transfer a portion of its marketing operations. Additionally, Canon Medical Systems USA (CMSU), the U.S. subsidiary of Canon Medical, will transfer a portion of its product sales and service operations to Canon Healthcare USA. The company said this helps to integrate operations with downstream marketing. This enables the company to focus on increasing its share of medical diagnostic systems in the American market.
Canon also plans for Canon Medical to take over advanced technology research activities. These activities, conducted over 10 years with Massachusetts General Hospital and Brigham Women’s Hospital at the Healthcare Optics Research Laboratory (HORL) in Boston, promote joint research aimed at commercialization. The company said it also plans to consider expanding U.S.-based development, manufacturing and other capabilities.
The company expects establishing the subsidiary and expanding its business to cost $300 million in investment capital.