Philips Healthcare

Medical Device Companies Analysis

April 2011

World Leaders in Health Industry Analysis

Table of Contents

Philips Healthcare

Contents
OVERVIEW............................................................................................................................................................1
FINANCIAL REVIEW.............................................................................................................................................3
First Quarter 2011 Financial Results...............................................................................................................................................3
Philips Electronics........................................................................................................................................................................ 3
Philips Healthcare........................................................................................................................................................................ 4

2010 Financial Results......................................................................................................................................................................5

Philips Electronics........................................................................................................................................................................ 5
Philips Healthcare........................................................................................................................................................................ 7

Five-Year Financial Data.................................................................................................................................................................10

Outlook.............................................................................................................................................................................................11
Employees........................................................................................................................................................................................12

STRATEGIC FOCUS.............................................................................................................................................13
Healthcare Strategy................................................................................................................................................................... 14

PRODUCTS.........................................................................................................................................................15
Imaging Systems.............................................................................................................................................................................16
Market Environment.................................................................................................................................................................. 16
General X-Ray............................................................................................................................................................................. 17
Digital Radiography................................................................................................................................................................................. 17
Computed Radiography......................................................................................................................................................................... 17
Conventional Radiography....................................................................................................................................................................18
Mobile Radiography................................................................................................................................................................................18
Mammography.........................................................................................................................................................................................18
Cardiovascular X-ray Products & Electrophysiology............................................................................................................... 19
Fluoroscopy.................................................................................................................................................................................20
Mobile C-arms.............................................................................................................................................................................20
Computed Tomography.............................................................................................................................................................20
Magnetic Resonance Imaging................................................................................................................................................... 21
Nuclear Medicine........................................................................................................................................................................23
Radiation Oncology Systems.....................................................................................................................................................24
Ultrasound..................................................................................................................................................................................24
Interventional X-ray...................................................................................................................................................................26
Hybrid Operating Rooms...........................................................................................................................................................28

Patient Care & Clinical Informatics...............................................................................................................................................28

Clinical Informatics.....................................................................................................................................................................28
Software Applications and Workstations............................................................................................................................................30
Patient Care................................................................................................................................................................................. 31
Patient Monitors.......................................................................................................................................................................................31
Foetal and Maternal Monitors...............................................................................................................................................................31
Jaundice Management...........................................................................................................................................................................31
Emergency Care & Resuscitation...........................................................................................................................................................31
ECG Solutions............................................................................................................................................................................................31
Hospital Respiratory Products..................................................................................................................................................32
Temperature Modulation Therapy...........................................................................................................................................32

Home Healthcare Solutions..........................................................................................................................................................32

Respiratory Care.........................................................................................................................................................................33
Sleep Disorder Breathing/Home Respiratory Products.........................................................................................................33
Sleep Diagnostic Systems.......................................................................................................................................................................33
Medical Alert Services................................................................................................................................................................34
TeleHealth..................................................................................................................................................................................................34
Home Cardiac Monitoring.........................................................................................................................................................34
HeartStart Home Defibrillator ..............................................................................................................................................................34

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Childrens Medical Ventures......................................................................................................................................................35

RESEARCH AND DEVELOPMENT......................................................................................................................36

R&D Expenditure............................................................................................................................................................................36
Research Establishments...............................................................................................................................................................36
The Netherlands.........................................................................................................................................................................36
Germany......................................................................................................................................................................................36
UK.................................................................................................................................................................................................37
China............................................................................................................................................................................................37
India.............................................................................................................................................................................................37
US.................................................................................................................................................................................................37
Russia...........................................................................................................................................................................................38

Research Projects and Agreements.............................................................................................................................................38

Optical Imaging to Aid Breast Cancer Detection.....................................................................................................................38
Magnetic Particle Imaging Technology (MAPIT) Consortium................................................................................................38
Vu University Medical Center....................................................................................................................................................39
EIB Loan.......................................................................................................................................................................................39
Philips Multi-Colour CT Scanner..............................................................................................................................................40
HYPERImage...............................................................................................................................................................................40
Digital Pathology Laboratory Solutions.................................................................................................................................. 41
Fully-Digital Light Detection Technology................................................................................................................................ 41
ThermoDox and MR-Guided HIFU............................................................................................................................................ 41
GlyGenix Therapeutics...............................................................................................................................................................42
Immunetrics................................................................................................................................................................................43
Bard Electrophysiology.............................................................................................................................................................43
SonoDrugs Project.....................................................................................................................................................................43
NeuroNexus Technologies.........................................................................................................................................................44
Kings College, London..............................................................................................................................................................44
University Medical Centre Utrecht...........................................................................................................................................45
Maastricht University Medical Centre and University Medical Center Aachen 45
West China Hospital...................................................................................................................................................................45
MediGuide...................................................................................................................................................................................45
HeartCycle Project......................................................................................................................................................................46
euHeart Project..........................................................................................................................................................................46
ImaRx Therapeutics...................................................................................................................................................................47

Studies..............................................................................................................................................................................................47
CARME .........................................................................................................................................................................................47

MANUFACTURING.............................................................................................................................................49
AGREEMENTS ..................................................................................................................................................51
NEC...............................................................................................................................................................................................52
Corindus......................................................................................................................................................................................53
Microsoft.....................................................................................................................................................................................53
Speeding the delivery of health information.....................................................................................................................................54
Hansen Medical..........................................................................................................................................................................54
Definiens.....................................................................................................................................................................................55
Atom Medical..............................................................................................................................................................................55
SpineMark...................................................................................................................................................................................55
Dako.............................................................................................................................................................................................55
Noninvasive Medical Technologies..........................................................................................................................................56
Boston Scientific.........................................................................................................................................................................56
Electron.......................................................................................................................................................................................56
Project HOPE...............................................................................................................................................................................57
Orion Health................................................................................................................................................................................58
Sectra...........................................................................................................................................................................................58

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Edwards Lifesciences.................................................................................................................................................................58
bioMrieux..................................................................................................................................................................................58
Dilon Diagnostics.......................................................................................................................................................................59
Bruker BioSpin............................................................................................................................................................................59
Maquet........................................................................................................................................................................................60
Sant Pau Hospital.......................................................................................................................................................................60
Covidien......................................................................................................................................................................................60
Capsule Technologie..................................................................................................................................................................60
University Medical Centre Hamburg-Eppendorf (UKE) and PRAGMA 61
Medusa Medical Technologies..................................................................................................................................................61
Concateno...................................................................................................................................................................................61
STERIS Corporation....................................................................................................................................................................62
Dubai Health Authority.............................................................................................................................................................62
Skytron........................................................................................................................................................................................62
Amirsys........................................................................................................................................................................................62
BrainLAB......................................................................................................................................................................................63
Ascent Profit................................................................................................................................................................................63
GeneGo........................................................................................................................................................................................63
Research Corporation Technologies.........................................................................................................................................63
Volcano Corporation................................................................................................................................................................. 64
Bioscan....................................................................................................................................................................................... 64
Biosense Webster...................................................................................................................................................................... 64
University Health Network........................................................................................................................................................65
Telzuit Medical Technologies....................................................................................................................................................65
EDDA Technology.......................................................................................................................................................................65
Laerdal.........................................................................................................................................................................................65
Fukuda Denshi............................................................................................................................................................................65
LiDCO...........................................................................................................................................................................................66
Masimo........................................................................................................................................................................................66
EP MedSystems...........................................................................................................................................................................66
Epic Systems................................................................................................................................................................................66
Nellcor.........................................................................................................................................................................................67
Stereotaxis..................................................................................................................................................................................67
Pulsion Medical Systems............................................................................................................................................................67
CardioDynamics.........................................................................................................................................................................67
Analogic.......................................................................................................................................................................................67
RaySearch Laboratories.............................................................................................................................................................68
Aspect Medical Systems.............................................................................................................................................................68
Sun MicroSystems (Oracle)........................................................................................................................................................68
Oridion Medical..........................................................................................................................................................................69
LifeGuard Medical Solutions.....................................................................................................................................................69
Civco Medical Instruments (Roper Industries).........................................................................................................................69

MERGERS AND ACQUISITIONS ...................................................................................................................... 70

Dameca........................................................................................................................................................................................71
medSage Technologies..............................................................................................................................................................71
Wheb Sistemas...........................................................................................................................................................................71
Burton Medical Products...........................................................................................................................................................71
CDP Medical................................................................................................................................................................................72
Shanghai Apex Electronics Technology...................................................................................................................................72
Tecso Informatica.......................................................................................................................................................................72
Siesta Group assets (Somnolyzer).............................................................................................................................................72
InnerCool Therapies...................................................................................................................................................................72
Traxtal..........................................................................................................................................................................................72
Medels Aerosol Therapy Business............................................................................................................................................73

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Meditronics.................................................................................................................................................................................73
Alpha X-Ray Technologies.........................................................................................................................................................74
Dixtal Biomdica e Tecnologia..................................................................................................................................................74
Shenzhen Goldway Industrial...................................................................................................................................................74
TOMCAT Systems........................................................................................................................................................................75
Respironics..................................................................................................................................................................................75
Visicu............................................................................................................................................................................................75
Emergin.......................................................................................................................................................................................75
Raytel Cardiac Services..............................................................................................................................................................76
Ximis............................................................................................................................................................................................76
VMI-Sistemas Medicos...............................................................................................................................................................76
Intermagnetics General.............................................................................................................................................................76
Witt Biomedical..........................................................................................................................................................................77
Stentor.........................................................................................................................................................................................77
Richardson Electronics' Medical Glassware Business.............................................................................................................77
Agilent Technologies Healthcare Solutions Group................................................................................................................77
Marconi Medical Systems..........................................................................................................................................................78
Medcare.......................................................................................................................................................................................78
ADAC Laboratories.....................................................................................................................................................................78
CardioLogica...............................................................................................................................................................................78
Anesthesia Recording................................................................................................................................................................78
Zymed..........................................................................................................................................................................................78
ATL Ultrasound...........................................................................................................................................................................79
Heartstream................................................................................................................................................................................79

MINORITY INVESTMENTS............................................................................................................................... 80
Corindus......................................................................................................................................................................................80
Gilde Healthcare III.....................................................................................................................................................................80
Immunetrics................................................................................................................................................................................80
BG Medicine................................................................................................................................................................................80
Kereos..........................................................................................................................................................................................81

JOINT VENTURES.............................................................................................................................................. 82
Philips Neusoft Medical Systems Co Ltd...................................................................................................................................82
Trixell ..........................................................................................................................................................................................82

DIVESTITURES.................................................................................................................................................. 83
DNA/RNA Molecular Diagnostic Testing Platform..................................................................................................................83
SHL Telemedicine.......................................................................................................................................................................83
FIMI..............................................................................................................................................................................................83
MedQuist.................................................................................................................................................................................... 84
Cozart/Concateno...................................................................................................................................................................... 84
Philips HeartCare Telemedicine............................................................................................................................................... 84
Speech Processing Telephony and Voice Control Business Units......................................................................................... 84
HealthCare Products Group..................................................................................................................................................... 84
Philips Hearing Implants.......................................................................................................................................................... 84
Pie Medical..................................................................................................................................................................................85

LITIGATION....................................................................................................................................................... 86
Masimo........................................................................................................................................................................................86

KEY CORPORATE EVENTS................................................................................................................................ 87

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List of Tables

SUMMARY OPERATING RESULTS..................................................................................................................................................................................................................... iii

Recent Key Events............................................................................................................................................................................................................................................2
Royal Philips Electronics - First Quarter 2011 Financial Results......................................................................................................................................................................3
Royal Philips Electronics - First Quarter 2011 Sales and Operating Income by Business Segment 3
Philips Healthcare - Key Financial Data, First Quarter 2011............................................................................................................................................................................4
Philips Healthcare - Sales by Product Sector, 12 months to March 2011.........................................................................................................................................................4
Philips Healthcare - First Quarter 2011 Sales by Geographic Region..............................................................................................................................................................4
Royal Philips Electronics - Annual Financial Results, 2006-2010...................................................................................................................................................................5
Royal Philips Electronics - Annual Sales by Business Segment, 2007-2010....................................................................................................................................................6
Philips Healthcare - Annual Financial Results, 2007-2010.............................................................................................................................................................................7
Philips Healthcare - Annual Sales by Geographic Area, 2007-2010................................................................................................................................................................8
Philips Electronics Five-Year Financial Summary......................................................................................................................................................................................10
Philips Group - Employees by Business Sector, 2007-2010........................................................................................................................................................................... 12
Global Imaging Systems Market by Geographic Area, 2009........................................................................................................................................................................16
Philips - Key Nuclear Medicine Products, April2011......................................................................................................................................................................................23
Philips - Ultrasound Products by Category, 2010..........................................................................................................................................................................................25
Philips - Selected Key Home Respiratory Products........................................................................................................................................................................................33
Philips - Annual R&D Expenditure, 2007-2010.............................................................................................................................................................................................36
Philips Healthcare - Major Manufacturing Locations...................................................................................................................................................................................49
Agreements Summary..................................................................................................................................................................................................................................51
Mergers and Acquisitions Summary.............................................................................................................................................................................................................70

List of Charts

Philips Electronics - Annual Sales and Operating Income, 2006-2010............................................................................................................................................................5

Philips Electronics - Annual Sales by Business Segment, 2007-2010...............................................................................................................................................................6
Philips Electronics - 2010 Sales by Business Segment......................................................................................................................................................................................6
Philips Healthcare - Annual Sales and Operating Income, 2007-2010............................................................................................................................................................7
Philips Healthcare - 2010 Sales by Product Area..............................................................................................................................................................................................8
Philips Healthcare - Annual Sales by Geographic Area, 2007-2010.................................................................................................................................................................8
Philips A Simplified Business Portfolio, 2000 to 2010................................................................................................................................................................................13
Philips Healthcare 2010 Sales by Product Area..........................................................................................................................................................................................15
Global Imaging Systems Market, 2009..........................................................................................................................................................................................................16

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