Philips and Healthcare Background

Philips and Healthcare
Philips medical activities date back to 1918, when it first introduced
a medical X-ray tube, and 1895, after it bought CHF Muller of
Hamburg, which manufactured the first commercial X-ray tube. By
1933, the company was manufacturing medical X-ray equipment in
Europe and then North America. Today, Philips Medical Systems is a
global leader in diagnostic imaging systems, healthcare information
technology solutions, and patient monitoring and cardiac devices.
Philips Medical Systems has long provided the equipment and technologies that
are on the cutting-edge of the healthcare market. Founded in 1896 when Philips
manufactured the first x-ray tubes for medical applications to 1998 when Philips
launched a Healthcare Services group dedicated to the advancement of healthcare
technology that meets the specialized needs of clinicians as well as patients, Philips
Medical Systems is well positioned to transform the healthcare possibilities of
tomorrow into the realities of today.
After launching a Healthcare Services group in 1998, Philips Electronics invested
heavily in its medical business segment in order to further enhance its product
portfolio. In October of that year, Philips Electronics acquired ATL Ultrasound,
an innovator in all digital ultrasound systems, including a broad product range
comprised of both high-definition and compact systems. In recent years, product
innovations have resulted in advanced signal processing such as tissue harmonic
imaging; 3D; and panoramic imaging.
To expand our presence in nuclear medicine, Philips acquired ADAC Laboratories
on December 18, 2000. Today, Philips Medical offers hospitals, research facilities
and outpatient centers with the most advanced NM technology available in the
healthcare market --including gantry-free nuclear medicine gamma cameras, SPECT
and PET systems, computers and clinical software.
On August 1, 2001, Philips acquired Agilent Technologies’ Healthcare Solutions
Group. The purchase of Agilent’s former healthcare business transformed Philips
into the number two medical equipment provider in the world. Key products
include diagnostic cardiology, ultrasound imaging, patient monitoring, automated
external defibrillators, point of care diagnostic systems, related supplies, and
professional services and support.

Just a few months later on October 19, 2001, Philips completed a three-year
acquisition strategy through its purchase of Marconi Medical Systems -- a medical
imaging innovator since 1915. Key products include leading multi-slice CT systems
as well as advanced applications in cardiology, oncology and PET/CT imaging.
The Growth Continues
In August, 5, 2005 Philips announced it had completed the acquisition of a 100%
stake in Stentor, Inc., a leading provider of picture archiving and communications
systems (PACS) used for storing, managing, and distributing digital radiology
images throughout hospitals and healthcare facilities. From its headquarters in
California, the Stentor site has become the global headquarters of Philips’ overall
PACS business. By merging with Stentor, Philips can offer hospitals and other
customers a complete package of state-of-the-art medical scanners along with
Stentor’s best-in-class PACS products to handle the large volumes of imaging data
generated by medical scanners. As a result of this acquisition, Philips now ranks
globally as the number two supplier of PACS.
On April 27, 2006, Philips completed its acquisition of Witt Biomedical Corporation,
the largest independent supplier of hemodynamic monitoring and clinical reporting
systems used in cardiology catheterization laboratories (Cath Labs), where heart
patients undergo a catheterization procedure, in which a small tube or catheter
is inserted in an artery in the arm or leg to reach the heart for diagnosis and
treatment. Due to the growing digitization of hospitals, cardiologists are increasingly
demanding that Cath Labs be fully integrated into a hospital’s IT infrastructure.
Hemodynamic monitors measure and monitor a patient’s ECG (electrocardiogram),
blood pressure and other vital signs associated with a Cath Lab procedure. Clinical
reporting systems record and document the entire Cath Lab procedure.
Through this acquisition, Philips and Witt both expect to offer customers an
integrated suite of best-in-class technologies for the Cath Lab department,
leading to increased sales in cardiovascular x-ray, cardiology picture archiving and
communication systems (PACS), and in hemodynamic monitoring and reporting
systems. Witt Biomedical has been integrated into the Cardiovascular X-ray business
unit of Philips Medical Systems.