4.9 billion, Siemens Healthineers makes a big move

Recently, Siemens Healthineers and the Canadian government announced a significant collaboration, signing a cooperation agreement totaling over 4.9 billion RMB. This new "value partnership" is established in conjunction with the Alberta Cancer Foundation, aiming to enhance medical service efficiency through technological innovation.

The western region of Canada is facing dual challenges of population growth and aging, leading to an increasing number of cancer cases. To address this situation, the Alberta provincial government will invest 800 million Canadian dollars (approximately 4.03 billion RMB) over the next eight years to fully support early detection of cancer, reduce patient waiting times, and strive to establish Alberta's leadership in cancer research and innovation. Siemens Healthineers will replace outdated imaging and oncology treatment equipment across Alberta, while introducing innovative technologies and consulting services and other solutions. This initiative will significantly enhance the province's healthcare facilities, providing patients with more precise and efficient diagnostic and therapeutic services.

At the same time, Siemens Healthineers will invest 175 million Canadian dollars (approximately 880 million RMB) to support the establishment of two excellence centers and related research projects. These two excellence centers will focus on precision diagnosis and treatment of cancer and cutting-edge technology research, aiming to promote breakthroughs and advancements in cancer treatment technologies by integrating global high-quality resources and innovative forces.

The Alberta Cancer Foundation, as the other party in this collaboration, will be responsible for managing and operating the Medical Research and Innovation Fund, aimed at attracting and retaining top global medical research talents. This fund will support basic cancer research, clinical trials, and the development of new technologies, bringing more hope and blessings to cancer patients in Alberta.

Government leaders stated in another announcement that they aim to reduce the volume of emergency visits related to tumors by 30% and cut cancer treatment wait times by 50% through this collaboration. In addition, the new Center of Excellence for Cancer Care will become Canada's first global training, learning, and reference center for oncology, focusing on attracting cancer care professionals and incorporating the latest treatment innovations.

The Alberta government stated that Siemens Healthineers has provided 100% of the province’s radiation therapy equipment, 50% of its simulation machines, and 10% to 20% of its diagnostic imaging equipment. However, the Alberta Cancer Foundation estimates that approximately 65% of the software and equipment in the province’s current cancer care and diagnostic imaging sectors have exceeded their useful life spans. Therefore, this collaboration is significant for enhancing the medical infrastructure in the province.

Alberta Minister of Health and Premier

Alberta's Minister of Health, Adriana Lagrange, stated in an announcement on March 21: "This partnership will effectively reduce wait times and patient costs while improving the service capacity of the entire healthcare system. It will also bring significant returns on investment in key areas of oncology, such as education, research, artificial intelligence, and machine learning, thereby better supporting patients and our healthcare personnel."

Arthur Kadle, the head of Siemens Healthineers Varian in Alberta, emphasized in a press release: "We will advance the level of care for cancer patients in Alberta through artificial intelligence, education, research, and innovation. By addressing the issues across the entire continuum of cancer care, we are striving to achieve a world free from the fear of cancer."

Recently, Siemens Healthineers published its financial results for the first quarter of fiscal year 2025, showing a strong start to the year. According to the report, as of December 31, 2024, the company's revenue reached 5.5 billion euros, with a growth rate close to 6%, fully in line with the annual guidance. In addition, the Q1 performance report indicates significant growth in both imaging and radiotherapy businesses. This performance aligns closely with Siemens Healthineers' continued investment and innovative strategies in the field of medical technology. Furthermore, the collaboration between Siemens Healthineers and the government of Alberta, Canada, underscores the company’s strategic focus on imaging and radiotherapy businesses.

In the imaging business sector, Siemens Healthineers saw a comparable revenue growth of 7.6% in the first quarter, amounting to nearly 3 billion euros. The company achieved significant growth in computed tomography (CT) and molecular imaging businesses. This performance reflects the sustained strong demand for high-quality medical imaging equipment in the market.

Siemens Healthineers' Varian business also performed well, with comparable revenue growth of 6.2% in the first quarter, approaching €1 billion. This growth was primarily driven by strong performances in various regions, particularly in the Asia-Pacific, Japan, and the Americas. As a core segment of Siemens Healthineers in the field of radiation therapy equipment, Varian's continuous technological innovation and market expansion strategies have earned the company widespread market recognition.

In the Chinese market, Siemens Healthineers has been increasing its investment. On January 16, 2025, the company held a groundbreaking ceremony for its new base in Shenzhen, with total investments exceeding 1 billion yuan. This is the second R&D and manufacturing base that Siemens Healthineers has invested in Shenzhen, and it is expected to commence production no later than the end of 2027. The new base will undertake the R&D and production of components for angiography equipment and MRI, including the DryCool superconducting magnet, which is the latest global innovation released by Siemens Healthineers.

Siemens Healthineers' strong growth in imaging and radiotherapy, along with its collaboration with the Alberta provincial government, fully demonstrates the company's leading position and continuous innovation capability in the medical technology field. In the future, with the continuous advancement of medical technology and increasing market demand, Siemens Healthineers is expected to maintain its strong growth momentum and provide more advanced and reliable medical solutions for patients worldwide.