Fujifilm Medical Systems U.S.A. merges with Fujifilm Healthcare Americas Corporation
Fujifilm consolidates medical businesses under one name in wake of Hitachi buy
October 04, 2021
by John R. Fischer, Senior Reporter
Fujifilm Medical Systems U.S.A. and Fujifilm Healthcare Americas Corporation, (formerly Hitachi Healthcare Americas) have merged into one enterprise that will operate under the name Fujifilm Healthcare Americas Corporation.
Together, both organizations compiled a portfolio of solutions for digital radiography, CT, endoscopy, endosurgery, enterprise imaging, in vitro diagnostics, MR, mammography and ultrasound, according to Henry Izawa, who will lead the combined company.
"We knew we would be able to better leverage the strengths of our talented people and innovative products - to create new value and contribute to the evolution of medical care - as one Fujifilm company. In addition to this, FUJIFILM Healthcare Americas Corporation now has more sales and service resources on the ground to better service our customers," Izawa, who is also the president and CEO of Fujifilm Healthcare Americas Corporation, told HCB News.
Izawa says the merger is expected to bring many positive changes that will enhance Fujifilm's ability to delivery quality care solutions to providers and patients. One of the company's first objectives, for instance, will be to launch a new clinical solutions division within the organization. The division will drive organ-based clinical initiatives to increase its presence in the acute care areas of the top 150 health systems. It will also raise Fujifilm's brand recognition and further establish it as a clinical leader.
Leading the division will be John Waddell, vice president of clinical solutions, who is responsible for Fujifilm's in-vitro diagnostics, Clinical 3D, and Surgical/Urology Ultrasound portfolios, according to Izawa. "The division will focus on the needs of facilities' tumor boards, which include pathologists, surgeons, oncologists, radiologists, and other specialists, and they evaluate a wide variety of information in recommending treatment. The grouping of these three businesses under John enables Fujifilm today to offer in-vitro diagnostics for staging, 3D software for planning, and intraoperative ultrasound for the guidance of liver disease."
The merger comes just months after the completion of the acquisition of Hitachi’s diagnostic imaging business by Fujifilm Corporation in a $1.6 billion absorption-type company split deal. The purchase added Hitachi’s CT, MR, X-ray and ultrasound systems to Fujifilm’s portfolio, as well as a 5.5% stake it held in the global medical imaging market. It also added endoscopy, in vitro diagnostic systems and PACS, including a new portfolio of endoscopic ultrasound PACS. Formerly known as Hitachi Healthcare Americas Corporation, the business was renamed in July as Fujifilm Healthcare Americas Corporation to reflect the transfer.
Around the time of the acquisition, Fujifilm also announced a greater commitment to invest more heavily in healthcare through 2023. It introduced a midterm managerial plan called Vision 2023 that included $11 billion in new spending planned through 2023, with major investments in Medical Systems, Bio CDMO and Life Systems. Fujifilm aims to generate during this time nearly $8 billion in revenue from its healthcare business, with $947 million in operating income and a 12% operating margin. “The healthcare business is to be expanded to the largest segment in terms of both revenue and operating income to build a robust business foundation that enables sustainable growth,” said the company.
Along with focusing on its medical imaging equipment, Fujifilm Healthcare Americas Corporation will continue to develop AI solutions as part of REiLI. Unveiled in 2018 at HIMSS in Las Vegas, REiLI is a research initiative for integrating AI applications into Fujifilm’s imaging and informatics solutions. It offers algorithms that can enhance image recognition, computer aided detection and diagnostic imaging workflow, with more to be introduced at this year’s RSNA in Chicago.
The new company also comes with a new executive management team of leaders from both businesses to help facilitate a smooth transition. They include Jun Higuchi as chairman; John Hahn as senior vice president of modality solutions; Bill Lacy as senior vice president of medical informatics; Jason Heim as senior vice president of sales; Randy Vader as senior vice president of regulatory and quality affairs; Taisuke Fujita as vice president of endoscopy; and Takehiro Fujimoto as vice president of the office of the president and CEO.
Most recently, Fujifilm Medical Systems agreed to take its digital radiography equipment to sea by signing a 10-year agreement with the U.S. Navy and Defense Logistics Agency to install such systems on U.S. naval ships. This includes next-generation detector technology and a high quality compact floor mounted room, along with advanced features. The first of these systems will be installed on one of the vessels later this year.
Together, both organizations compiled a portfolio of solutions for digital radiography, CT, endoscopy, endosurgery, enterprise imaging, in vitro diagnostics, MR, mammography and ultrasound, according to Henry Izawa, who will lead the combined company.
"We knew we would be able to better leverage the strengths of our talented people and innovative products - to create new value and contribute to the evolution of medical care - as one Fujifilm company. In addition to this, FUJIFILM Healthcare Americas Corporation now has more sales and service resources on the ground to better service our customers," Izawa, who is also the president and CEO of Fujifilm Healthcare Americas Corporation, told HCB News.
Izawa says the merger is expected to bring many positive changes that will enhance Fujifilm's ability to delivery quality care solutions to providers and patients. One of the company's first objectives, for instance, will be to launch a new clinical solutions division within the organization. The division will drive organ-based clinical initiatives to increase its presence in the acute care areas of the top 150 health systems. It will also raise Fujifilm's brand recognition and further establish it as a clinical leader.
Leading the division will be John Waddell, vice president of clinical solutions, who is responsible for Fujifilm's in-vitro diagnostics, Clinical 3D, and Surgical/Urology Ultrasound portfolios, according to Izawa. "The division will focus on the needs of facilities' tumor boards, which include pathologists, surgeons, oncologists, radiologists, and other specialists, and they evaluate a wide variety of information in recommending treatment. The grouping of these three businesses under John enables Fujifilm today to offer in-vitro diagnostics for staging, 3D software for planning, and intraoperative ultrasound for the guidance of liver disease."
The merger comes just months after the completion of the acquisition of Hitachi’s diagnostic imaging business by Fujifilm Corporation in a $1.6 billion absorption-type company split deal. The purchase added Hitachi’s CT, MR, X-ray and ultrasound systems to Fujifilm’s portfolio, as well as a 5.5% stake it held in the global medical imaging market. It also added endoscopy, in vitro diagnostic systems and PACS, including a new portfolio of endoscopic ultrasound PACS. Formerly known as Hitachi Healthcare Americas Corporation, the business was renamed in July as Fujifilm Healthcare Americas Corporation to reflect the transfer.
Around the time of the acquisition, Fujifilm also announced a greater commitment to invest more heavily in healthcare through 2023. It introduced a midterm managerial plan called Vision 2023 that included $11 billion in new spending planned through 2023, with major investments in Medical Systems, Bio CDMO and Life Systems. Fujifilm aims to generate during this time nearly $8 billion in revenue from its healthcare business, with $947 million in operating income and a 12% operating margin. “The healthcare business is to be expanded to the largest segment in terms of both revenue and operating income to build a robust business foundation that enables sustainable growth,” said the company.
Along with focusing on its medical imaging equipment, Fujifilm Healthcare Americas Corporation will continue to develop AI solutions as part of REiLI. Unveiled in 2018 at HIMSS in Las Vegas, REiLI is a research initiative for integrating AI applications into Fujifilm’s imaging and informatics solutions. It offers algorithms that can enhance image recognition, computer aided detection and diagnostic imaging workflow, with more to be introduced at this year’s RSNA in Chicago.
The new company also comes with a new executive management team of leaders from both businesses to help facilitate a smooth transition. They include Jun Higuchi as chairman; John Hahn as senior vice president of modality solutions; Bill Lacy as senior vice president of medical informatics; Jason Heim as senior vice president of sales; Randy Vader as senior vice president of regulatory and quality affairs; Taisuke Fujita as vice president of endoscopy; and Takehiro Fujimoto as vice president of the office of the president and CEO.
Most recently, Fujifilm Medical Systems agreed to take its digital radiography equipment to sea by signing a 10-year agreement with the U.S. Navy and Defense Logistics Agency to install such systems on U.S. naval ships. This includes next-generation detector technology and a high quality compact floor mounted room, along with advanced features. The first of these systems will be installed on one of the vessels later this year.