ge healthcare driving innovation...mr guided focused ultrasound by insightec, ltd. regulatory...
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GE Healthcare
Driving Innovation Tom Gentile President & CEO GE Healthcare Systems Morningstar Management Behind the Moat Conference
7 November 2013
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Caution Concerning Forward-Looking Statements: This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at the planned level; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order commitments into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change and affect planned share repurchases and strategic actions, including acquisitions, joint ventures and dispositions; our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.” “In this document, “GE” refers to the Industrial businesses of the Company including GECC on an equity basis. “GE (ex. GECC)” and/or “Industrial” refer to GE excluding Financial Services.” GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.
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GE Healthcare ~$20 billion global business unit of GE
53,000 employees worldwide
~$1 billion/year investment in R&D
Leadership businesses
Healthymagination focused on:
Affordability Increased
access
Improved quality
At work for a healthier world …
Healthcare Systems
Main products
CT DGS
MR U/S
MI LCS
Services
Rev. $14B
Life Sciences
Main products
Bioprocess
Cell technologies
Research
Consumables
Healthcare IT
Main products
PACS
RIS
Ambulatory EMR
Caradigm (MS JV)
Rev. $2B
PET/SPECT Tracers
Clarient/Pathology
Genomics
Rev. $4B
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0
10
20
30
40
50
60
70
80
60 66 72 78 84 90 96 02 08
Cu
mu
lati
ve
Sc
ree
nin
g
Init
iati
ve
s
Other trends creating significant opportunity
Growing cancer screening
Global procedures in millions
‘07 ’16E
5
10
15 CAGR
>10%
Screen &
Diagnose Treat Monitor
Segment $B
Growth %
CM % 40%
5%
20
60%
15%
25
50%
6%
8
Growing MIS
Breast
Colon
Cervix
Growing Molecular Dx
$0.36 $0.94
$2.7 $3.65
$5.3
1995 2000 2005 2009 2012
CAGR ~17%
Clinical molecular Dx segment
Source: Kalorama Information
($ in billions)
Accelerating globalization
HCS Sales
80% 74%
20% 26%
2009 2012
Developed
Emerging
CAGR
15%
3%
$10.9 $12.8 5%
($ in millions)
Despite continuing pressure on healthcare costs, we see positive opportunities
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New growth less concentrated, more complex
Global healthcare structural dynamics
2010 GDP per capita ( USD, PPP adjusted)
Healthcare spend by country
Healthcare spending % of GDP
Swiss
Source: World Bank
China Russia
Indonesia
Brazil
KSA
Kazakhstan
~1B people ~$5.2T spend 39 countries
US
~5B people ~$1.2Tspend 178 countries
Germany France
Korea
Japan Spain
Italy UK
Netherland
Australia Israel
Portugal
India
UAE
Poland
Hungary South Africa Czech
Very high spend.. GDP growth at best
Growing healthcare % of GDP
…multiplier effect
0
2
4
6
8
10
12
14
16
18
0 10,000 20,000 30,000 40,000 50,000
+3%
+15%
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Anesthesia delivery system in Africa
Advancing safe surgery in Africa
Current Situation Technology & Rationale
• Two physicians for every 10,000 people
• 0.4 hospital beds per 1000 people.
• Poorest ~35% receive only 3.5% of all surgeries
• 99% of maternal deaths in resource poor countries
• Average of 1 maternal death per 100 live births.
• Anesthesia tremendous risk in developing countries
• UK has 400x more anesthesiologist than Uganda
• Launched in Kenya on November 12, 2012
• Created specifically for developing countries
• Cost =~$10,000 (varies by location & configuration)
• Enhanced capabilities – Integrated Sp02
• Compact breathing system to minimize leaks
• Battery lasts up to 6 hours
• Clinical education and training program
Carestation 30
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Vscan TM – Pocket-sized ultrasound
A leader in pocket-sized ultrasound
Description
• Pocket-sized, hand held ultrasound
Benefits
• Variety of clinical applications
• Immediate visualization
• Up to 1 hour continuous scanning capability
• Simplified presets for Abdominal, Cardiac & OB
GE Difference
• Currently the only device this size with these
features at this price point
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Ultrasound pregnancy exam
Check five basic conditions with a V-scan and refer to higher level of care
Muliple births
Breach
Gestational Age
Placenta Previa
Cord issues
Indonesia
Ghana
Millennium development goals
4 & 5:
Reduce maternal and
infant mortality
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Breast Cancer Leading cause of cancer in
women… ~ 500K deaths per
annum
* Source: WHO, 2008
Aging and increased access
driving global procedures
* Cancer deaths per
thousand patients
Mortality reductions small, but
quality of life years extension high
Most frequent cancer in women – over one million new diagnosis / year
Aligning care to women’s …
Physiology e.g., dense
breasts
Risk Factors e.g., family
history
Type of
Disease e.g., Luminal A,
Luminal B,
HER2+, Triple
neg
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GE plays across breast care continuum
Current
Planned
IDI
AW
PACS
ViewPoint
Xeleris
IDI
AW
PACS
ViewPoint
PATHSiTE,
Omnyx**
FFDM
DBT
CESM
Other
U/S
MRI
MBI
PET/CT
Clarient
IT
Virtual
Tumor Board
Screening Diagnosis Staging Treatment
Planning Monitoring
Hardware
Software
Services
Wetware MDX Visipaque*, Omnipaque*, Omniscan*, Sonozoid*, Nanocol*
• * No FDA organ-specific indications for breast • ** Product under development. Omnyx products
are for research only. Not for use in diagnostic procedures.
Meet
Grace This is her story
“Connecting” across modalities
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Scalpelless surgery becoming a reality MR guided focused ultrasound by InSightec, Ltd.
Regulatory Procedure Approvals
• 2006 – FDA Uterine fibroids
• 2012 – FDA Bone metastasis
• 2013 - UF CFDA, Brazil, Canada Bone Brazil, Canada FDA Stage 3 ET Trial FDA Stage 1 Prostate
Non-invasive MR guided surgery
Recent Developments
• Essential tremor study published in New England Journal of Medicine, August, 2013
Comm’l Procedures +18% annually
Non-invasive ablation,
high energy ultrasound
Uterine Fibroid
Bone Cancer
Brain
614 727
12 13 OP2012 2013
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Precision medicine
A century of ‘mass market’ medicine comes to an end…
Moving to ‘personalized’ patient-based decisions
~$800 B
Market
Theme: Precision Medicine across the continuum of care
• Am I at risk for a disease?
• Do I have a disease?
• What type of disease do I have?
• Should I actively treat my disease?
• Is my disease responding to treatment?
• What further action should I take?
• Physiology
• Risk Factors
• Type of disease CESM
Aligning care around personal factors
Opportunities from advancements in
imaging/multi-omics
Molecular
Platforms
Biomarker
Assessment
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Monitoring therapies
Built from collaborations between clinical research partners and GE scientists
• Consistent SUV measurements of metabolic activity
• Eight capabilities working together
• Designed to aid in the early determination of treatment effectiveness
Cycles of Chemotherapy
0 1 2 3 4 5 6
Cure
Lower Detection Limit By PET
Size at Diagnosis
0 1 2 3 4 5 6 7 8 9
10 11
# Cells
(log)
12 Patient over treated
Patient appropriately treated
Patient not cured…
needed treatment change
Quantitative PET – Q.Suite Platform
Graphic authorized from:
“Integrating PET and PET/CT into the Risk-Adapted Therapy of
Lymphoma,” Yvette L. Kasamon, Richard J. Jones, and Richard
L. Wahl, J Nucl Med 2007; 48:19S–27S
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Only GE MICT
DGS MR
LCS
Many breakthrough technologies only available from GE Healthcare
Ultrasound
Automated whole breast ultrasound
CESM
MBI
Metabolic MR w/ Hyperpolarization
Carbon 13
FlightPlan for Liver VSCAN Silent MR
MRg FUS
SnapShot Freeze
VolumeRAD
End Tidal Control
Carestation 30
DoseWatch VEO Super-value MIC
Digital health
Maveric
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Our purpose… a reminder
At work for a healthier world
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