FUJIFILM Holdings Corporation, the Japanese multinational, published its latest financial results early today for its second fiscal quarter ending September 30 2019. These results include reporting on its healthcare business unit which comprises of five core divisions; medical systems, pharmaceutical, bio CDMO, regenerative medicine and life sciences. The latest results show that while overall Group revenues declined, in part due to the negative impact from an economic slowdown in China and unfavourable currency movements, sales revenue from its healthcare business continued to grow during the second fiscal quarter. The total sales revenue from healthcare reached ¥126.3 billion during the quarter, compared with ¥121.6 billion in 2018, an increase of +3.9% year-on-year (YoY). On a calendar year-to-date basis, sales revenue reached ¥371.8 billion, compared with ¥357.3 billion in 2018, an increase of +4.1% YoY. The healthcare business has been becoming an increasingly important contribution to the overall Group portfolio and accounted for approximately 20% of global revenues during the fiscal year 2019 (ended March-19), an increase from 16% in FY2015. This increase has been driven by a combination of weakening sales from other parts of the FUJIFILM Corporation as well as sustained sales growth from healthcare. The sales growth from healthcare year-to-date has been predominately driven by increasing sales revenue from the medical systems, bio CDMO and regenerative medicine segments.
Medical Systems Business
The medical systems segment is centred around solutions for medical IT and medical imaging, which encompasses the Groups portfolio of diagnostic X-ray, digital mammography, computed tomography (CT), ultrasound, endoscopy and IVD systems. The FUJIFILM leadership team has been targeting annualised sales growth of approximately 7% for the medical systems business and the latest quarterly results indicate continued sales growth broadly in-line with the Group’s strategy. The sales growth achieved year-to-date has predominantly been driven by a combination of increasing sales from medical IT, endoscopy, diagnostic X-ray and IVD product lines.
Medical IT: The companies primary IT solution is its SYNAPSE product, a medical-use picture archive and communication system (PACS) which has historically been the global market-leading proposition, in terms of revenue market share, according to internal estimates by FUJIFILM. On a year-to-date basis, sales revenue from medical IT solutions has significantly increased, driven by strong sales of SYNAPSE PACS to customers based in Japan and the United States. During July 2019, domestic sales began for its SYNAPSE SAI viewer, its latest platform leveraging artificial intelligence technology to support with improving diagnostic accuracy and workflow across diagnostic imaging platforms.
Endoscopy: The endoscopy business has experienced strong sales year-to-date, in part, driven by its 7000 system which the company attributes to the products unique light source featuring multiple high-intensity LEDs. During May 2019, Fujifilm announced its full-scale entry into the endoscopic instruments business through the acquisition of Medwork GmbH, a company that develops, manufactures and markets instruments for therapeutic endoscopy.
Diagnostic X-ray: sales growth has been “steady” to “moderately strong” from the sale of digital radiography (DR) equipment, notably from the Calneo Smart series of DR diagnostic equipment. Sales were strong mainly from customers based within emerging regions such as the Middle East, Africa and Southeast Asia.
Ultrasound: looking backwards to March 2012, Fujifilm acquired SonoSite, the US-based manufacturer of ultrasound equipment specialising in portable systems for point-of-care (POC) applications. Sales were strong from customers within its core geographical markets; the United States, China and Japan. Within the U.S. sales of full-flat ultrasound devices such as the SonoSite SII were notably strong. Within China, sales of the SonoSite Edge II product were strong. Within Japan, strong sales were driven by the FC1-X product featuring a relatively new automatic blood flow measurement function for dialysis facilities.
In-vitro Diagnostics: in the field of IVD, sales were favourable for DRI-chem product series along with increased contracted examinations from the in the domestic veterinary market.
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Upcoming OEM results:
- Varex Imaging, (later today)
- DRTECH, 14th Nov-19
- Vieworks, 14th Nov-19
- Rayence, 14th Nov-19
- Genoray, 14th Nov-19
- Samsung Medison, 14th Nov-19
- DMS Imaging, 15th Nov-19
- Acroma AB, 19th Nov-19