On the heels of completing its acquisition of Hitachi’s diagnostic imaging business, a deal that had been in the works since 2019, Fujifilm has announced a commitment to further expansion into the healthcare market.
On April 15, 2021, Fujifilm introduced a midterm managerial plan called Vision 2023, outlining $11 billion in new spending planned through 2023. The plan calls for the largest share of the new investments to be dedicated toward its business growth in the healthcare sector.
“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,” the company announced in a press release.
Fujifilm’s strategy calls for further expansion into healthcare, including major investments in three business areas — Medical Systems, Bio CDMO, and Life Systems — with a goal of generating nearly $8 billion in revenue from its healthcare business in 2023, with $947 million in operating income and a 12% operating margin.
In recent years, Fujifilm has grown its presence in the market for MR, CT, and endoscopic medical imaging devices. Going forward, Fujifilm aims to capitalize on its existing diagnostic imaging product line while contemplating additional technological innovation through the incorporation of medical AI and IT systems.
In its Bio CDMO division, Fujifilm aims to help meet demand for the development and bulk manufacturing of new pharmaceuticals. In its life systems division, the company aims for its targeted investments to go toward comprehensive business solutions for drug discovery and development, as well as reinforcement and integration of international supply capacity and customer support capabilities.
The plan also includes a reorganization of Fujifilm’s corporate management structure, replacing current CEO Shigetaka Komori (who would continue on as chief advisor) with director Teiichi Goto, who would take on the role of president and CEO. The proposed new management structure will be submitted for approval at a general shareholder’s meeting this June.
In addition, Vision 2023 outlines a number of social and environmental sustainability goals. For instance, building on a 30% reduction in CO2 generated over the product life cycles achieved between 2013 and 2019, it includes an upward revision of this target through 2023 to a 45% reduction from 2013 levels.
The plan represents a departure from Fujifilm's previous managerial strategy, Vision 2019, which prioritized Fujifilm’s digital camera product line and presented the ambitious goal of outstripping Canon and Sony to capture first place in market share in the premium mirrorless camera market. Having failed to achieve that goal, the new midterm plan represents a major bet on Fujifilm’s ability to successfully pivot and carve out a more substantial presence in lucrative healthcare markets.