The $18 billion healthcare business division of General Electric Co (GE) has no intention of splitting its healthcare portfolio, putting an end to many questions being raised by analysts and investors over time- that GE’s healthcare business will generate more value if divested.
GE Healthcare, whose other products include diagnostic and imaging equipment, and healthcare IT products, has reported flat revenue and profit over the past few years, as confirmed by Reuters.
Asked at an investor conference whether GE was open to split-offs, GE Healthcare Chief Executive Officer John Flannery said: “Bottom line is we have been black and white that all aspects of healthcare are part of our portfolio.”
“There is no intent to do anything along those lines,” Flannery told the Morgan Stanley conference.
Flannery said GE gets “a lot of questions” about the life-sciences portion that includes tools for drug development, but he described life sciences as “a high-value beachfront property that is appreciating in value.”
Flannery, who was previously GE’s acquisitions chief before taking over healthcare nearly a year ago, said the unit was focused on internal improvements.
“Our focus is very heavily organic,” Flannery said. “There’s a lot of things we can do to make our own business better.”