Philips' medical activities date back to 1918, when it first introduced a medical X-ray tube, and 1895, after it bought CHF Muller of Hamburg, which manufactured the first commercial X-ray tube. By 1933, the company was manufacturing medical X-ray equipment in Europe and the United States. Today, Philips Medical Systems is a global leader in diagnostic imaging systems, healthcare information technology solutions, and patient monitoring and cardiac devices. Philips also provides customer services such as financing, consultancy and maintenance & repair.
Between 2000 and 2003, Philips doubled the size and scope of its Medical Systems business through approximately EUR 5 billion in acquisitions to position the company as a global player in this market. Philips acquired ATL Ultrasound (1998), ADAC Laboratories (Nov. 2000), Agilent Technologies Healthcare Solutions Group (Nov. 2000), Marconi Medical Systems (October 2001). Philips is now among the top three in the Medical Systems market alongside General Electric (GE) and Siemens and holds the number two spot globally in the medical diagnostic imaging equipment market.
Through these acquisitions, Philips has also been able to expand into the key North American market, which now accounts for approximately 55 percent of the division's sales (Europe: 33 percent, Asia: 12 percent). Philips has also been able to round out its diagnostic imaging business with patient monitoring, resuscitation and patient information management products. In 2003, Philips also announced that it is forming a manufacturing and R&D joint venture with Neusoft Digital Medical System Co. Ltd. (NDM) of China to serve the growing Chinese and Asian markets and to expand its portfolio of economy to mid-range products.
In 2003, the Medical Systems business accounted for one-fifth (21%) of Philips' overall sales, making the product division the company's second largest contributor to sales (after Consumer Electronics) of Philips' five product divisions.
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