Royal Philips Electronics (AEX: PHI, NYSE: PHG), and Electron, a leading Russian medical equipment manufacturer, announced a partnership for the development and production of innovative products specifically designed to serve the needs in the Russian healthcare market. The partnership will initially focus on the development of innovative computed tomography products - the first jointly-developed CT scanner will be launched later this year - and will likely be expanded in the future with other healthcare products such as magnetic resonance (MR), X-ray, and ultrasound systems. The development and manufacturing facilities have been set up at Electron's R&D and production site in St. Petersburg, Russia.
The Philips-Electron partnership is aimed at supporting the modernization of the Russian healthcare system by providing technologies needed for early diagnosis of cardiovascular diseases and cancer, enabling earlier treatment of patients. Cardiovascular diseases and cancer are the biggest contributors to Russia's mortality rate. In the last two years there were approximately 2.5 million deaths due to cardiovascular diseases while there are around 300.000 a deaths a year due to cancer. 60% of all patients are diagnosed with cancer in the third or fourth stage when possibilities for treatment are the lowest. Early diagnostics, for example by using CT scans, are key in reducing the mortality rate and increasing the average life expectancy in Russia.
This innovative partnership established between Philips and Electron is a unique cooperation format for the Russian market. The two companies will be working together on all levels of the development processes: from joint development of new technologies, addressing the specific needs of the national healthcare system, to providing a technology base for clinical research and nation-wide training programs for doctors on efficient use of healthcare technology solutions.
This initiative will also help reduce Russia’s dependence on imports of healthcare equipment, as well as increase efficient use of public funds allocated to improve the Russian healthcare system. In three years the aim is that 51% of all high-tech components used in products manufactured by Philips-Electron will be developed and produced locally in Russia. As part of this commitment, Philips-Electron will also lay the foundation for establishing a Russian-based Healthcare Innovations Centre, capable of developing competitive products and solutions for the Russian healthcare market.
"For Philips this unique partnership with Electron is a next step in executing on our Emerging Markets strategy for our healthcare sector," Ronald de Jong, CEO for Philips Healthcare in Emerging Markets said. "Modernization of the healthcare system of Russia requires a comprehensive and highly sophisticated approach. Philips and Electron will support the modernization of the healthcare system at technology, economy and even strategy levels by bringing in Philips' global expertise and local innovation-development potential to serve the real needs of the Russian healthcare system."
Alexander Elinson, CEO of Electron: "We hope that the success of our cooperation in this innovative partnership will stimulate the development of similar initiatives in all segments of the national healthcare industry and beyond, bringing real value to all stakeholders, from business and government, to healthcare professionals and all Russian citizens."
Related news articles:
- Philips Healthcare's Profile
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people's lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.
About Electron
Electron is Russia's largest developer and manufacturer of high quality medical diagnostic equipment in radiology. The company supplies high-tech equipment to the medical institutions in Russia and CIS and clinics of Western Europe, USA, Middle East, Japan and China. Actively exploring the overseas markets, the company priority is still focused on equipping the local hospitals with the latest technologies, tailored to the needs and specifics of Russia.The company was founded in 1989. Today there are 450 employees at St. Petersburg factory in addition to the specialized regional service centers. The production capacity allows producing up to 1700 units of X-ray equipment per year. For more information please visit the company's website www.electronxray.com.