Siemens remains on track to redefining its Healthcare division as a separate business. On its way, the international conglomerate has picked up David Pacitti, a former SVP of Abbott Vascular in the U.S., to head up its North American Healthcare business.
The company saw double-digit equipment sales growth for healthcare in the Americas last quarter. In fact, in the third quarter healthcare was its top revenue growth performer--with a 16% gain to €3.3 billion from €2.9 billion a year earlier. Along with Power and Gas and Energy Management, Healthcare was also one of the largest revenue-generating group for the conglomerate, which topped €19 billion in revenue last quarter.
Siemens expects that separating the Healthcare unit out as a separate business will help it to build on its regional strengths, as well as focus tightly on maintaining an edge via innovation.
"Diagnostics and imaging showed an excellent profitability development, which, as expected, was also supported by currency tailwinds. Healthcare is progressing like planned to further optimize its business, operationally as well as strategically. It will be set up to be the enabler for healthcare providers globally," said Siemens President and CEO Joseph Kaeser on an August earnings call. "The Healthcare organization will be realigned with focus on strengthening the region, give decision power to the region, make it faster in the market and a new set-up of business areas, which are tailored to specific customer requirements."
He added, "Healthcare is aiming to grow in the following areas: image guided therapy, molecular diagnostics and service like managed equipment services or digital health service."
Pacitti will be tasked with overseeing Siemens Healthcare in the U.S., including its medical imaging, laboratory diagnostics, therapy solutions and services groups. He will be based at Siemens' U.S. headquarters in Malvern, PA.
At Abbott ($ABT), Pacitti was an SVP since 2013. Prior to that, he was the company's VP of commercial operations from 2009. He joined Abbott after 14 years at Guidant. He is replacing Dr. Gregory Sorenson who has held the position of Siemens Healthcare North America since 2011; his departure had been disclosed previously.
- here is the announcement