Siemens Healthineers will carve out its in vitro diagnostics business as a standalone company operating under the name Olyrian Diagnostics.
The company also announced it will change its name to 'Healthineers’, with the two transitions taking place in parallel. The separation is expected to be completed by 2028, and the name, Olyrian Diagnostics, will be rolled out in stages.
The business runs medical technology, diagnostic and therapeutic imaging, as well as laboratory diagnostics and digital healthcare solutions.
The change comes after Healthineers shared its financial outlook for FY2027, which was weaker-than-expected and predicted its Diagnostics revenue would be "approximately flat.”
Healthineers’ Diagnostics business has struggled to compete in China due to government reforms and stiff domestic competition.
Its recent financials show that the Diagnostics business, the company’s weakest business segment, continued to flounder, with a quarterly margin of 5.4%, down 2.1% below the previous year's 7.5%.
Deutsche Bank said the quarterly results were "disappointing," and described the separation as being “sensible.”
“A dedicated name and brand will give the business a distinct market presence as one of the largest stand-alone diagnostics-focused companies,” Healthineers said. Olyrian will remain part of Healthineers during the transition.