H1 2022 Performance Review of the World's Top 10 Medical Device Companies: Diagnostics Surge and Innovation Drive Growth

Recently, major global medical device companies have successively released their financial reports for the first half of 2022 or H1 of the 2022 fiscal year. This article provides a brief introduction to the revenue performance of leading companies such as Abbott, Medtronic, Johnson & Johnson, Siemens Healthineers, Roche Diagnostics, BD, GE Healthcare, Stryker, Philips Healthcare, and Boston Scientific.

 

　　Abbott

 

In the first half of the year, Abbott's medical device sector achieved a total revenue of $16.93 billion, representing an 18.8% year-on-year increase. Among this, diagnostic business revenue reached $9.6 billion, marking a 32.3% year-on-year growth, making it one of Abbott’s fastest-growing business segments. Notably, its rapid diagnostics business revenue hit $6.3 billion, surging by 67.2% year-on-year, becoming the largest sub-sector within Abbott's diagnostics division.

 

Due to the impact of the COVID-19 pandemic and insufficient medical staffing, in the first half of the year, Abbott's cardiovascular products business segment generated revenue of $4.628 billion, representing a year-on-year increase of only 1.6%. However, in April this year, Abbott's Aveir VR pacemaker was approved for marketing in the United States. It became the second leadless pacemaker in the world to receive approval after Medtronic’s Micra series and is currently the only wireless pacemaker globally that can be retrieved when the system needs replacement or the patient's treatment requires modification.

 

　　Medtronic

 

Medtronic Achieves Total Revenue of $15.835 Billion in H1 of FY2022, Up 11.88% Year-over-Year. The Top Three Revenue-Generating Segments Were: Surgical Innovations ($3.051 Billion), Cardiac Rhythm and Heart Failure ($2.954 Billion), and Cranial & Spinal Technologies ($2.189 Billion).

 

The revenue growth of the surgical innovation segment (including businesses such as surgical robots) was mainly driven by the sales performance of products like the Signia Intelligent Stapling Platform and Tri-Staple Intelligent Stapler under Medtronic.

 

The revenue growth of the cardiac rhythm and heart failure segment (including businesses such as cardiac rhythm management devices and cardiac ablation solutions) was primarily driven by products like the Micra leadless pacemaker. The Micra leadless pacemaker, the smallest pacemaker in the world, was approved for marketing in China in 2019 and is clinically applied in the treatment of arrhythmia.

 

The revenue growth of the cranial and spinal technology segment (including spinal surgery, neurosurgical instruments, etc.) was primarily driven by products such as the Mazor surgical robotic system and the StealthStation surgical navigation system.

 

　　Johnson & Johnson

 

In the first half of the year, Johnson & Johnson's medical device segment achieved revenue of $13.868 billion, representing a year-on-year increase of 2.3%. It is reported that Johnson & Johnson will continue to focus on high-growth niche markets, including ophthalmic devices, orthopedic medical devices, and cardiovascular medical devices, while actively developing innovative products.

 

It is worth noting that Johnson & Johnson's robotic-assisted orthopedic surgery platform, VELYSTM, received FDA clearance in 2021.MedicineFollowing approval for marketing by the Food and Drug Administration (FDA), the continuous growth in sales of this product has become a significant driving factor for Johnson & Johnson's orthopedic medical device business growth.

 

　　Siemens Healthineers

 

Siemens Healthineers Achieves Total Revenue of $10.802 Billion in H1 of Fiscal Year 2022, Up 34% Year-on-Year, with All Business Segments Recording Positive Growth. Driven by High Demand for COVID-19 Testing in Developed Regions such as Europe and the United States, Siemens Healthineers' Diagnostics Business Surged by 33%.

 

Medical imaging equipment is Siemens Healthineers' largest business segment, generating revenue of $5.28 billion. The growth in this segment’s revenue was primarily driven by the magnetic resonance imaging (MRI) device business in the U.S. and European markets, as well as the positron emission tomography (PET) device business in the Chinese market.

 

Diagnostic Business: One of Siemens Healthineers' Fastest-Growing Segments in H1 of FY2022, with Revenue Reaching $3.298 Billion, a Year-on-Year Increase of 33%. Among This, the COVID-19 Antigen Test Kit Business Achieved Revenue of $1.033 Billion, with a Year-on-Year Increase Exceeding 200%.

 

Siemens Healthineers achieved revenue of $1.234 billion in the Chinese market, representing a 9% year-on-year increase.

 

　　Roche

 

In the first half of the year, Roche's diagnostics business revenue reached US$10.387 billion, a year-on-year increase of 10%, with growth accelerating.

 

Roche is a leading company in the global clinical immunology field, with central laboratory services as its largest business segment, generating revenue of $4.045 billion, a year-on-year increase of 3%.

 

Driven by the growing demand for rapid COVID-19 testing, Roche's point-of-care testing business revenue reached $2.609 billion, a year-on-year increase of 45%. Meanwhile, this business segment has surpassed the molecular diagnostics segment to become the second-largest segment in Roche's diagnostics business.

 

Roche's molecular diagnostics business achieved revenue of $2.067 billion, which was basically flat compared to the same period last year. Part of the revenue growth in this segment was driven by Roche’s acquisition of molecular diagnostics testing company GenMark in March 2021. However, the revenue was negatively impacted by a decline in sales of its molecular diagnostic products in regions such as North America and Europe.

 

　　BD

 

BD's H1 2022 fiscal year achieved revenue of $10.06 billion, a year-on-year decrease of 2.1%. Among this, the medical business was its highest revenue segment, reaching $4.813 billion, a year-on-year increase of 5.3%.

 

Revenue from the life sciences business was $2.968 billion, a year-on-year decrease of 16.7%. Of this, revenue from the diagnostics systems segment was $2.295 billion, marking a year-on-year decline of 21.6%. This was the main reason for the revenue decline in this business segment and also a key factor affecting the overall revenue decline of BD.

 

In addition, the interventional treatment business achieved revenue of $22.25 billion, representing a year-on-year increase of 6.7%. Among this, the surgical business revenue reached $7.01 billion, marking a year-on-year growth of 12.4%, becoming the fastest-growing segment in the interventional treatment sector. The outstanding performance in this field is attributed to two factors: on one hand, the increase in the number of surgeries; on the other hand, BD's acquisitions of medical device companies in this field, such as its acquisition of Tepha, a manufacturer of absorbable polymer technology platforms, in July 2021, and its acquisition of Tissuemed, a developer of surgical suture products, in October 2021.

 

　　GE Healthcare

 

In the first half of the year, GE Healthcare's revenue reached 8.882 billion U.S. dollars, a year-on-year increase of 1%. Due to the disruption of the supply chain for key components of medical devices, the order conversion rate of GE Healthcare's business was negatively affected to a certain extent.

 

In terms of细分赛道, the company's medical systems business achieved revenue of $7.913 billion, a year-on-year increase of 2.2%;PharmaceuticalsDiagnostic (including contrast agents and nuclear tracers) business achieved revenue of $9.69 billion, a year-on-year decrease of 5%.

 

　　Stryker

 

In the first half of the year, Stryker's total revenue reached 8.768 billion US dollars, a year-on-year increase of 6.3%.

 

This year, Stryker has changed its financial reporting segments for the first time into two major divisions: Medical Surgical and Neurotechnology businesses, and Orthopaedics and Spine businesses. The revenues of these two divisions were $4.972 billion and $3.796 billion respectively, representing year-over-year growth of 9.3% and 2.7%. Notably, medical endoscopes became the fastest-growing segment for Stryker, generating revenue of $1.138 billion, a year-over-year increase of 15.3%.

 

As a company focused on orthopedicsMedical DeviceDeveloped byEnterpriseToday, the highest revenue and fastest-growing business segments are not orthopedic products, but the company's performance still ranks among the top global medical device enterprises, indicating that strategic planning and flexible transformation are very important for a company.

 

Stryker's orthopedic product line covers artificial knee joints, artificial hip joints, artificial spine, trauma and extremity products, etc. In the first half of the year, the highest revenue segment of Stryker's orthopedic product business was trauma and extremity products, achieving a revenue of $1.361 billion, a year-on-year increase of 3.6%.

 

In China, in September 2021, the results of the second batch of high-value medical consumables centralized procurement organized by the state were announced, and all Stryker artificial joint products won the bid. Although the profit margin has narrowed after the price reduction due to the centralized procurement, this has also created favorable conditions for its accelerated layout in the Chinese market.

 

　　Philips Healthcare

 

In the first half of the year, Philips' medical business (excluding personalHealth) Revenue of $6.281 billion, a year-on-year decrease of 2.95%.

 

Diagnostic and treatment business segment achieved revenue of $4.175 billion, a year-on-year increase of 2%. Among these, the revenue from image-guided therapy and enterprise diagnostic information services saw growth; however, due to limitations caused by a shortage of specific electronic components, revenue from medical imaging equipment and ultrasound businesses declined.

 

The Connected Care business segment achieved revenue of $2.106 billion, a year-on-year decrease of 12%, mainly due to supply chain disruptions.

 

　　Boston Scientific

 

In the first half of the year, Boston Scientific achieved revenue of $6.27 billion, representing a year-on-year increase of 7.6%. Among this, the revenue from the two major segments—cardiovascular business and medical surgery business—reached $3.869 billion and $2.401 billion respectively, with year-on-year growth rates of 7.9% and 6.6%.

 

Boston Scientific's cardiology business segment covers cardiac rhythm management devices, interventional cardiology products, electrophysiology equipment, and other related businesses. In the first half of the year, this segment became Boston Scientific's highest revenue-generating division, achieving a revenue of $2.924 billion, representing a year-over-year increase of 9.1%.

 

Notably, in the first half of the year, the sales revenue of Boston Scientific's left atrial appendage closure device, Watchman, reached $446 million, representing a year-on-year increase of 23.3%. The outstanding sales performance of this product series has effectively driven the growth of its cardiology business segment.

 

At the same time, Boston Scientific's electrophysiology device business has also achieved good performance, with revenue in the first half of the year increasing by 51.7% year-on-year. This is mainly due to Boston Scientific's completion of the acquisition of Baylis Medical Company in February this year, further intensifying the research and development efforts of puncture products in the electrophysiology and structural heart fields. In fact, since 2021, Boston Scientific has engaged in multiple mergers and acquisitions in the electrophysiology field, which shows its strong emphasis on expanding its presence in this area. (Contributed by MedTrend)