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11 of the biggest medtech earnings stories from Q4 2022

(From Ishant Mishra on Unsplash) Layoffs, growth and more — the biggest medtech companies in the world experienced a range of outcomes in the fourth quarter of 2022.

Over the past two months, many of the largest medtech companies across the globe reported their financial results for the three months ended Dec. 31, 2022 (with a handful of exceptions due to different operating calendars).

Some companies offered reasons to feel good about the direction of the medtech industry. Others went in the opposite direction, enforcing workforce reductions and cost-cutting efforts. MassDevice compiled a list of layoffs across the industry, which have now affected more than 19,000 workers.

As layoff news mounted across the industry over the past month, MassDevice‘s MedTech 100 Index declined 2.6%. That was slightly worse than the S&P 500, which was down 2%.

Here are some of the biggest stories from the most recent quarter, all coming from companies within the…

GE HealthCare is expanding its partnership with Sinopharm in China

GE HealthCare (Nasdaq:GEHC) is forming a long-term joint venture with Sinopharm as it seeks to make additional inroads in China’s medical device market.

Shanghai-based Sinopharm is one of the largest life science products companies in the world. Its pharmaceutical business alone — with roughly $60 billion in annual revenue — places it at No. 2 in our sister publication Drug Discovery & Development‘s Pharma 50 report of the world’s largest pharma companies. In addition to drug development, Sinopharm operates a substantial China-based logistics network for drugs and medical devices.

Meanwhile, GE HealthCare is No. 6 in Medical Design & Outsourcing’s Medtech Big 100 report of the largest medical device companies.

In an SEC filing from Feb. 24, GE HealthCare said it has an existing joint venture relationship with Sinopharm that it made through Hangwei, a medical equipment manufacturing company formed in 1991. The new long-term…

GE HealthCare, Advantus ink $760M device maintenance deal

GE HealthCare (Nasdaq:GEHC) announced today that it entered into a 10-year agreement with Advantus Health Partners with $760 million.

The agreement provides GE HealthCare’s healthcare technology management (HTM) services to Advantus’ clients. Together the companies aim to offer a holistic program beyond the traditional break-fix approach to medical device maintenance. Advantus plans to use the partnership to support quality care and sustainable cost reductions for its clients, too.

“Advantus was founded following our team’s success designing a better supply chain model for a large health system with 48 hospitals,” said Dan Hurry, president of Advantus Health Partners. “We understand the growing challenges that health care providers—large and small—face in today’s environment. We are constantly working to bring next-generation supply chain management models to our customers, and this relationship with GE HealthCare underscores our commitm…

GE Healthcare recalls scanner for patient crushing risk

The NM/CT 850 system is one of the models affected by the recall. [Image from GE HealthCare]The FDA labeled the recall of the GE HealthCare (Nasdaq:GEHC) Nuclear Medicine 600/800 Series systems as Class I, the most serious kind.

GE HealthCare recalled the imaging platforms after identifying an issue with two mechanisms. These mechanisms prevent uncontrolled detector movement. The issues could result in the suspended mass of the detector potentially falling. A similar issue arose nearly 10 years ago after part of a GE HealthCare Infinia Hawkeye 4 system collapsed and killed a patient.

Should the 1212-pound (550-kg) detector fall, it may crush or trap the patient. GE HealthCare received eight complaints related to the issue, with no injury or death reported.

Details of the GE HealthCare recall

The recall includes a series of models of the Nuclear Medicine 600/800 Series systems. It includes the Brivo 615, Discovery NM 630 and the Optima 640. It also covers th…

GE HealthCare to acquire Caption Health and its AI-powered image guidance tech

GE HealthCare (Nasdaq:GEHC) announced today that it signed an agreement to acquire AI healthcare technology developer Caption Health.

The companies declined to disclose the financial terms of the deal.

Caption Health creates clinical applications to aid in early disease detection. The company’s technology uses artificial intelligence (AI) to assist in conducting ultrasound scans. This technology can make ultrasounds easier and faster while detecting signs of diseases like heart failure.

“Guiding ultrasound users during examinations with the help of AI is of growing importance, especially as we reach a broader set of healthcare professionals,” said GE HealthCare Ultrasound President and CEO Roland Rott. “Caption Health’s AI applications help enable reliable, consistent ultrasound examinations to deliver more precise diagnoses, improved treatment decision-making, and ultimately improved patient outcomes.”

Cashman added that t…

GE HealthCare expects growth in first year as standalone company

GE HealthCare (Nasdaq:GEHC) shares were up on fourth-quarter results that include projected sales growth in 2023.

Shares of GEHC rose more than 3% at $72.36 apiece by afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up more than 9%.

The Chicago-based company posted profits of $554 million in the quarter. That amounts to $1.21 per share on sales of $4.9 billion for the three months ended Dec. 31, 2022. Adjusted earnings per share (EPS) came in at $1.31.

GE HealthCare, which just this month spun off from GE, recorded a 1.8% bottom-line slide. However, sales grew by 7.6% year over year.

The company’s imaging (up 11%), ultrasound (6%) and patient care (7%) businesses all posted sales growth in the quarter. Only pharmaceutical diagnostics (down 5%) saw a decline in revenues.

“GE HealthCare delivered strong revenue growth in the fourth quarter a…

GE Healthcare to acquire CT guidance tech developer Imactis

The Imactis CT-Navigation system. [Image from the Imactis website]GE HealthCare (Nasdaq:GEHC) announced that it acquired computed tomography (CT) interventional guidance technology developer Imactis.

France-based Imactis, founded in 2009, develops CT-Navigation. The ergonomic, universal solution provides stereotactic needle guidance. This enables intuitive pre-planning and continuous control throughout a wide range of procedures.

The companies declined to publicly disclose the financial terms of the deal. GE HealthCare intends to fund it with cash on hand. It remains subject to customary closing conditions, including a governmental review in France. The acquisition marks the GE spinoff’s first foray into M&A since it became a standalone company last week.

“We’re thrilled to take this step in strengthening our interventional guidance offering for patients and customers,” said Jan Makela, president and CEO of Imaging, GE HealthCare. “The Imactis CT-…

GE Healthcare to acquire CT guidance tech developer Imactis

The Imactis CT-Navigation system. [Image from the Imactis website]GE HealthCare (Nasdaq:GEHC) announced that it acquired computed tomography (CT) interventional guidance technology developer Imactis.

France-based Imactis, founded in 2009, develops CT-Navigation. The ergonomic, universal solution provides stereotactic needle guidance. This enables intuitive pre-planning and continuous control throughout a wide range of procedures.

The companies declined to publicly disclose the financial terms of the deal, announced yesterday. GE HealthCare intends to fund it with cash on hand. It remains subject to customary closing conditions, including a governmental review in France.

The acquisition marks the GE spinoff’s first foray into M&A since it became a standalone company last week.

“We’re thrilled to take this step in strengthening our interventional guidance offering for patients and customers,” said Jan Makela, president and CEO of Imaging, GE …

GE HealthCare appoints former Amazon exec as first chief technology officer

New GE HealthCare CTO Dr. Taha Kass-Hout served as chief medical officer and director of machine learning at Amazon Web Services [Photo courtesy of Amazon]GE HealthCare (Nasdaq:GEHC) announced today that it appointed Dr. Taha Kass-Hout as its first chief technology officer.

Kass-Hout’s responsibilities include leading the GE spinoff’s new science and technology organization. He reports to GE HealthCare President and CEO Peter Arduini.

According to a news release, the role includes driving the company’s D3 precision care strategy. This framework emphasizes GE HealthCare’s smart devices. D3 brings data and insights together with the aim of optimizing the clinical and patient journey. This enhances the company’s ability to enable precision care, it said.

“GE HealthCare has a strong track record of industry-first technologies and an innovation pipeline of products focused on improving patient care,” said Arduini. “As a cardiologist…

GE HealthCare joins S&P 500 on first day of trading

GE HealthCare is becoming part of the S&P 500 today — its first day trading on the Nasdaq as an independent company under the GEHC ticker.

S&P Global announced the addition of GE HealthCare to the index on Dec. 28. Vornado Realty Trust moves to the S&P MidCap 400.

GE first said it planned to spin off its medtech business in November 2021. GE’s board signed off on the deal in November 2022.

Chicago-based GE HealthCare is No. 6 in our sister site Medical Design & Outsourcing‘s Big 100 ranking of the world’s largest medical device companies. It has roughly $18 billion a year in annual revenue and 51,000 employees,

The company has Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses under its umbrella. On top of M&A deals, it has been forging partnerships with other major medtech companies, including Medtronic and Elekta. It’s reportedly even considered acquiring business …

Siemens Healthineers, GE HealthCare reportedly express interest in Medtronic units

According to reports, Siemens Healthineers and GE HealthCare registered interest in acquiring business units from Medtronic (NYSE:MDT).

Bloomberg first reported the interest from the two companies in two units Medtronic plans to spinoff. The outlet cited people familiar with the matter.

In October, Medtronic announced its intention to pursue a separation of the company’s Patient Monitoring and Respiratory Interventions businesses. Both comprise part of the company’s Medical Surgical portfolio. In spinning those businesses off, the company aims to create value for itself and shareholders, CEO Geoff Martha said.

According to Bloomberg, sources indicated that Medtronic remains open to a sale at the right price. The report also said it values the businesses at more than $7 billion. Others registering interest include private equity firms, Bloomberg said.

GE HealthCare clears one of the final hurdles to going independent

GE (NYSE:GE) announced that its board of directors approved the previously announced spinoff of its GE HealthCare business.

Prior to the spinoff, GE expects GE HealthCare to convert into a corporation named GE HealthCare Technologies Inc. It anticipates trading for the company to begin on the Nasdaq market on Jan. 4, 2023, under the “GEHC” ticker. The company registered a Form 10 statement with the SEC last month with the expectation of the spinoff completing at the start of 2023.

To effect the separation of businesses, GE’s board approved a distribution to shareholders of at least 80.1% of GE HealthCare’s outstanding shares. Holders of GE common stock are entitled to receive one share of GEHC common stock for every three shares of GE common stock held on Dec. 16, 2022. GE expects the distribution to occur after market close on Jan. 3, 2023.

Effective upon the spinoff, GE plans to retain 19.9% of the outstanding shares of GEHC com…