Dive Brief:
- GE's healthcare unit on Tuesday reported second-quarter revenues of $4.5 billion, a 10% increase organically, as its pharmaceutical diagnostics business saw orders grow nearly 50% organically while its healthcare systems orders grew 7% organically year-over-year as double-digit growth in imaging and ultrasound offset a decline in life care solutions orders.
- CEO Larry Culp told an investor call that the conglomerate's overall orders and revenue returned to growth in the quarter, with momentum across its businesses driven by healthcare and services. The healthcare unit's results reflect the return of elective procedures to pre-pandemic levels, which other medtechs have also reported in recent days, with orders up double digits compared to the second quarter of 2019.
- GE Healthcare CEO Kieran Murphy will continue to serve in his current role until the end of 2021, to be replaced by Integra LifeSciences CEO Peter Arduini. Murphy, who led the healthcare unit for four years, will be a strategic advisor to Culp on GE’s precision health strategy for an undisclosed amount of time.
Dive Insight:
Early medtech quarterly financial reports over the past week indicate a recovery in the volume of elective procedures. GE joins Abbott Laboratories, Johnson & Johnson and Intuitive Surgical in reporting encouraging signs that elective care is making a comeback from the negative impacts due to the COVID-19 pandemic.
CFO Carolina Dybeck Happe told investors on Tuesday's earnings call that GE healthcare saw growth across most regions and all product lines with market fundamentals improving.
"Europe, China and Japan were solid markets due to government spending," the CFO said. "Private markets also grew in the U.S. across key customers as recovery continues."
A standout in the second quarter was GE healthcare's pharmaceutical diagnostics business, which saw orders grow nearly 50% organically year over year as recovery momentum continued.
GE Healthcare’s pharmaceutical diagnostics business in May announced the acquisition of Zionexa, a French maker of in-vivo oncology and neurology biomarkers. The financial terms of the deal were not disclosed.
GE's healthcare unit plans to scale Zionexa’s FDA-approved positron emission tomography (PET) imaging agent Cerianna, which is used as an adjunct to biopsy for the detection of estrogen receptor positive lesions to help inform treatment selection for patients with recurrent or metastatic breast cancer. The molecular imaging agent is intended to "provide more targeted treatment for metastatic breast cancer patients," according to Culp.
The company's goal is to make Cerianna available to at least 75% of metastatic breast cancer patients in the U.S. by 2023.
The company is continuing to invest in digital and AI-enabled applications. GE in May announced the launch of an AI-enabled virtual processing radiology solution, Xeleris V, which the company contends will simplify and enhance clinician workflows when paired with GE Healthcare’s large install base of nuclear medicine cameras.
