by
Gus Iversen, Editor in Chief | January 02, 2019
Siemens spins off Healthineers with Frankfurt Exchange IPO
Setting a positive example for what can happen when an industrial giant spins off its healthcare unit, Siemens Healthineers shares roared up after being launched on the Frankfurt stock exchange on March 15.
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The price at the IPO was in the lower half of its guidance range of 26 to 31 euros.
Siemens raised 4.2 billion euros ($5.2 billion) from the offering – Germany's second largest IPO in almost 20 years.
Buyers snapped up 150 million shares, representing 15 percent of Healthineers. Siemens stated that it intended to continue as a majority shareholder for the long haul.
Calling the Healthineers “a truly global innovator with unique scale,” Bernd Montag, CEO of Siemens Healthineers, stressed that given its positioning and global footprint, the organization will be “one of the main long-term beneficiaries of the significant structural growth inherent in our markets.”
China trade tariffs target imaging equipment
Citing the trade deficit and the need to protect the intellectual property of U.S. businesses, the Trump Administration introduced a series of tariffs on Chinese goods this year. In response, China issued tariffs of its own and a trade war was underway.
Among the products poised to be hit by the tariffs were medical devices, such as MR magnets and CT scanners. By late September, nearly $5 billion worth of U.S. medical devices had fallen under the wrath of China’s retaliatory tariffs.
That round of Chinese-imposed tariffs added $3.5 billion in impacted medical devices, affecting “almost all remaining U.S. MedTech exports to China in 2017,” said AdvaMed in a presentation at the annual MedTech Conference in Philadelphia, reported Forbes.
“If the trade war continues and escalating continues to grow, there will be more impact,” AdvaMed CEO Scott Whitaker told attendees at the conference.
On December 24, Varian Medical Systems announced it received notification from the United States Trade Representative (USTR) that its exclusion request for Halcyon radiotherapy systems for cancer treatment, which are manufactured in China, had been granted.
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