2015 med tech R&D budget: $1.190 billion
Change from 2014 budget ($1.092 billion): 9%
Percent of 2015 segment sales ($8.96 billion): 13%
R&D has been a top priority for Royal Philips ($PHG) since the company decided to focus on HealthTech a couple of years ago and dispose of its lighting business. Last year was no different, with Philips funneling almost $2 billion into developing new imaging and patient monitoring technologies.
Part of the company’s strategy is concentrating on “high growth areas” such as digital pathology, wearable patient monitoring and health informatics, CEO Frans van Houten told investors on an April earnings call. Philips recently snatched up Northern Ireland’s PathXL to get its hands on the company’s technology for image analysis and tissue pathology.
The company has also made strides in patient monitoring. The company recently published data on its camera-based vital sign monitoring, which show that the technology could effectively monitor absolute oxygen saturation of arterial blood without contact.
Philips has big plans for the rest of 2016. The device giant recently revealed positive data on its connected medication dispenser, Medido, which showed improved drug adherence among patients who used the device. Philips is aiming to launch the device in the U.S. and other European countries this year.
Meanwhile, the company is keeping its eyes open for other opportunities for expansion. Now that it’s unloaded its lighting business, Philips sees dealmaking as playing a key role in broadening its footprint.
"We continue to invest in organic growth opportunities as well as in partnerships that we expect will have great relevance for our existing and potential future customer base, and therefore driving future growth and profitability," van Houten said in April.
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