GE plans to spin off its healthcare business, leading shares to rise
It has recently been reported that multinational conglomerate General Electric is set to spin off its healthcare business as it continues its restructure and focus predominately within renewable energy, power and aviation markets.
The company has sold off a number of its units, such as GE Appliances and Lighting and now its distributed power arm, which is being acquired by Advent. However, it has also taken on new ventures, such as the launch of GE Digital in 2015.
Nonetheless, the move to spin off its healthcare arm follows on from the growing trend of external companies venturing further into the industry or looking for potential ‘quick wins.’
The $19bn business provides medical imaging, monitoring, biomanufacturing, and cell and gene therapy technologies, as well as precision health in diagnostics (in partnership with Roche Diagnostics), therapeutics and monitoring through intelligent devices, data analytics, applications and services.
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Through its ongoing strategic review, the company will aim to create a "a simpler, stronger, leading high-tech Industrial company” and reduce net debt by up to $25bn by 2020.
“GE will be a focused high-tech industrial company that will be easier for investors to follow and measure with a significantly improved balance sheet to support its remaining businesses,” the company has said.
Although shares plunged over 25% following on from the news that the company had fallen out of the Dow Jones Index in favour of Walgreens Boots Alliance, its shares rose slightly upon the news.
Additionally, the company is selling it 62.5% stake in Baker Hughes, following on from its move to invest in renewable energy initiatives.
On the rise: Doktor.se
1. Doktor.se launches as a digital healthcare platform in Sweden in 2016. The company's focus is on the B2B market, with a mission to help members find, book and get access to healthcare services through telehealth and telephone calls.
2. The company offers healthcare services through its app as well as at bricks and mortar clinics. After raising more than €40 million in a funding round in May 2020 to expand its operations both nationally and overseas, CEO and founder Martin Lindman says there are plans to enter new markets at the beginning of 2021.
3. Belgium becomes the fifth market where Doktor.se provides telemedicine, through Belgium's communications company Proximus Group. It becomes the second most downloaded doctor app in Europe, and over 1.2 million patient consultations are carried out, either through the app or at physical clinics in Sweden. Throughout 2020 it administers over 250,000 COVID-19 antibody tests in Sweden.
4. Doktor.se is the most popular digital healthcare in Sweden, used by approximately one-tenth of the country's population. New funds are raised to offer improved services for mental health and chronic illnesses, and to expand digital services and acquire physical services to integrate into its digital platforms with the aim of creating a hybrid model.
5. The company announces €29.5 million in funding from Chinese technology multinational Tencent Holdings. Doktor.se say the funds will be used to make its global healthcare services more efficient, accessible and affordable.
The platform now employs nurses, doctors and specialist doctors, psychologists, and physiotherapists, and is available across Europe and in Brazil.
6. Over 1.5 million people are currently using healthcare apps developed by Doktor.se, either run by the company or through its SaaS licensing business. There are around 900 people employed by the company, and Doktor.se say that the productivity of medical staff using the platform is up to four times greater than those working in traditional services.