By Kira Britten and Paolo Laudani
Nov 5 – German medical technology company Siemens Healthineers said on Thursday it had begun carving out its diagnostics business, which it plans to rebrand as Olyrian Diagnostics ahead of a future divestment.
The company said the separation process had started and was expected to be completed by mid-2028.
Siemens Healthineers had previously said the separation could take around two years and indicated the business might no longer form part of the group by 2030.
In a call with analysts, chief financial officer Jochen Schmitz said the diagnostics unit would continue its transformation programme with the aim of achieving mid-teens margins over the medium term.
The unit reported an adjusted EBIT margin of 5.4% in the fourth quarter.
Schmitz said the business was targeting an additional €400 million ($450 million) of savings while maintaining its medium-term margin ambitions.
Schmitz added that the planned separation of diagnostics and spin-off from Siemens would create short-term challenges through carve-out and stranded costs, but it would support a more focused business over the longer term.
Olyrian Diagnostics will remain part of Siemens Healthineers during the transition period. The business produces more than 16 billion diagnostic tests annually. It also accounts for approximately 20% of Healthineers’ workforce and generates 17% of its total revenue.
The company, which is renaming itself “Healthineers,” said a separate name and brand would help position the unit as a standalone business during the transition.
($1 = 0.8880 euros)
(Reporting by Kira Britten and Paolo Laudani in Gdansk; Editing by Matt Scuffham)
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