Headquarters: Erlangen, Germany
2024 projected sales: $20.3 billion
2024 projected R&D spend: $1.76 billion
2017 sales: $15.5 billion
2017 R&D spend: $1.41 billion
With global diagnostic imaging sales forecast to reach $51 billion in 2024, Siemens Healthineers is predicted to continue leading the segment with nearly $12 billion in revenue.
Although Evaluate expects the imaging sector to be one of the slowest-growing in the medical device market over the coming years, Healthineers’ sizable market share in that space—projected to hold steady from 2017 to 2024 at just over 23%—is enough for the German giant to maintain its fourth spot on the list.
But General Electric and Philips are not far behind. Between the three of them, they accounted for nearly two-thirds of global imaging sales in a $39.5 billion market in 2017.
That featured prominently during Healthineers’ long-awaited IPO listing on the Frankfurt exchange last March. Its shares jumped after its parent conglomerate, Siemens AG, raised about $5.2 billion when it sold a 15% stake in the manufacturer of X-ray machines and scanners, though it plans to stay a majority shareholder.
The IPO was the second-largest in Germany since the start of the millennium, beat out by renewable energy company Innogy, which went public in 2016, according to data from Bloomberg.
Before the IPO, in terms of total sales, Healthineers brought in $15.5 billion in 2017. That number is expected to grow to $20.3 billion in 2024, driven in part by additional growth in its diagnostics segment.
However, analysts say that Healthineers’ IPO fell behind estimates over doubts in the sales performance of the company’s new Atellica line of laboratory diagnostic devices, which will have trouble displacing the current leaders in the space. Healthineers’ shares sold at €28 (about $34), in the lower half of the range of €26 to €31. The company is currently trading at $22.
Healthineers has looked to bolster its in vitro diagnostics offerings in the past. In December 2017, the company moved to buy Luxembourg-based Fast Track Diagnostics for an undisclosed sum.
The acquisition helped Healthineers expand the offerings of its Versant kPCR molecular system with over 80 assays and panels for the detection of various bacterial, viral, fungal and parasitic infections. The company will continue to operate as Fast Track Diagnostics, with Siemens controlling its sites in Luxembourg, Malta and India.
In 2017, in vitro diagnostics added $4.7 billion to Healthineers’ balance sheet. Evaluate expects that to grow to over $6 billion in 2024, but not enough to overtake the top three of Roche, Abbott and Danaher.