GE HealthCare Technologies Inc.
NasdaqGS-GEHC
Company Overview
GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, Hong Kong, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, and X-ray systems, as well as women's health products. The Ultrasound segment provides screening, diagnosis, treatment, and monitoring of certain diseases through radiology and primary care, women's health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment involved in the provision of medical devices, consumable products, services, and digital solutions through patient monitoring, anesthesia delivery and respiratory care, diagnostic cardiology, and maternal infant care products. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals, administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents, or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes that are injected into a patient prior to a diagnostic imaging scan. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.
Name
GE HealthCare Technologies Inc.
CEO
Peter J. Arduini
Website
www.gehealthcare.com
Sector
Health Care Equipment and Supplies
Year Founded
2022
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Bulls Say
Now that it has been spun off, the company is able to focus on R&D and operational efficiency without competing internally with GE’s other business lines.
Medical imaging has high barriers to entry and long-term secular growth drivers, including aging populations, greater demand for screening and surveillance, and increasing utilization of minimally invasive or noninvasive procedures.
Unlike its peers, GEHC is a major player in the pharmaceutical diagnostics market, which has high barriers to entry, attractive returns, and potential upside with respect to the “theranostics" market.
Bears Say
As a newly spun-off company, GEHC does not have a long track record of operating as a stand-alone company.
GEHC’s China business will likely see increasing competition from local competitors over time.
Rising interest rates will not only affect demand for GEHC’s capital equipment, it will also adversely affect the company’s underfunded pension obligations and debt refinancing rates.