- GE HealthCare begins trading on the Nasdaq
Jan 4, 2023
Yahoo Finance Live anchors discuss GE HealthCare completing its spin-off from General Electric.
Video Transcript
ANAJLEE KHEMLANI: Well, let's get to my pick. GE has finally spun off its health unit, creating the newly listed GE Healthcare on the NASDAQ, which began trading today. The parent GE will still have nearly a 20% stake in the spinoff. And while this isn't a new business line for GE, it does signal the appeal of an industry that accounts for nearly 20% of the country's GDP. Between the influx of tech and other consumer brands in recent years, everyone is wrangling for their piece of the $4 trillion pie. I feel like I talk about this all the time.
Tracking-- while tracking tech and technology sectors' attempts to infiltrate the space has been top of mind for investors, brands like Best Buy, you see retail pharmacies and others that you recognize. As you can see on your screen, Lyft, Uber, UPS, you wouldn't think, has its own health unit. So increasingly, these companies are trying to find new avenues to capitalize on what is a sector that just won't quit.
Medtech especially, which often covers devices, is an area of growth as more companies tinker with the idea of consumer-facing health devices. That came, of course, we saw during the pandemic, more remote monitoring, more wearables. And so these companies are really trying to get in on that space.
Meanwhile, you've got legacy medtech sector, the medtech-- medtech sector-- wow, I didn't realize I was going to have that tongue twister in there-- dominated by big pharma. Think of J&J and Medtronic and the like. That's going to be really interesting to watch because they have been watching consumer habits.
And you've seen some of these big players spin out or not pay as much attention to consumer brands, but also what consumers demand as patients, whether in the outpatient setting or when you're looking at remote monitoring wearables and the like. That's really going to drive the strategy of these companies, I think, in the coming years.
DAVE BRIGGS: And the company, some feel, will be worth some $50 billion. This is going to be a huge spinoff. And really, the story of GE moving forward is going to be one of the stories of the year, in particular, the shedding of its power business. My eye's on GE Aerospace, the one that's worth the most money, somewhere in the neighborhood of $100 billion, they believe, spinning out more than $20 billion annually in revenue.
- GE HealthCare begins trading as spin-off heralds shift to corporate streamlining
Jan 4, 2023
A longstanding medical tech maker is now set to make its own moves.
GE HealthCare made its market debut on Wednesday under the ticker symbol GEHC, finalizing a spin-off from General Electric (GE), which is shifting its focus exclusively to aviation.
“It’s enabled us to kind of simplify how we run the company,” Peter Arduini, CEO and president of GE HealthCare, said in an interview with Yahoo Finance (video above). “And ultimately, it’s about capital allocation over the long run.”
GE HealthCare stock rose more than 5% in the afternoon session to trade around $59 per share.
Industrial conglomerates spin off businesses
GE HealthCare is just the latest company to spin off in hopes of capitalizing on a growing market in the medical technology arena.
In September, Johnson & Johnson (JNJ) announced it would cleave consumer products like Band-Aid and Tylenol into a separate company called Kenvue. Even companies already laser-focused on the medical tech industry have not been immune: In October, Medtronic (MDT) announced it would spin off its patient monitoring and respiratory interventions businesses.
And if 2021 was defined by the record number of IPOs seen in a calendar year, 2022 was defined by the divestments announced by industry titans. Exhibitors stand by medical equipment of General Electric during the 2022 World Health Expo held in Wuhan International Expo Center on August 5, 2022, in Wuhan, Hubei Province, China. (Photo by Getty Images)
Cereal maker Kellogg (K) announced it would split into three companies covering snack foods, cereal, and plant-based alternatives. Meanwhile, freight expert XPO Logistics (XPO) completed a spin-out of its brokerage, called RXO, after shedding its contract logistics arm GXO in 2021.
For investors, a more focused and independent company by reducing the need to consider wholly different industries when assessing a company’s potential.
GE HealthCare brings in roughly $18 billion in annual revenue, and the company is valued at around $26 billion. In an indication of GE HealthCare’s post-spin-off size, the company immediately replaced commercial real estate company Vornado in the S&P 500 index.
Arduini said the company intends to invest in research and development, particularly around how to use medical data to uncover possible treatments and medical insights for health care providers dealing with patients.
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“We generate a big portion of the data,” Arduini said. “It’s much more than just making the best next device...I would argue if you take a look at the class of med tech companies out there, we’re one of the folks that has the ability to take health care to the next level with turning data into insights, and that’s what we intend to do.”
General Electric will continue to own around 19.9% of GE HealthCare, the company said in a statement. As part of its streamlining plans, the legacy GE company will eventually separate its renewable energy, power, and digital businesses into another spin-off called GE Vernova while the company's remaining assets will include GE’s flagship aircraft engine manufacturing.
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Mike Juang is a producer at Yahoo Finance.
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- GE HealthCare Spinoff Starts Trading
Jan 4, 2023
General Electric completed the spinoff of its healthcare business, which is now trading as GE HealthCare Technologies Inc. + GE HealthCare, which trades on Nasdaq under the ticker symbol "GEHC," was recently just below $60 a share, giving the newly public company a market capitalization of around $27 billion, according to [Nasdaq's website](https://www.nasdaq.com/market-activity/stocks/gehc). + GE issued GEHC shares to existing shareholders and will retain about 20% equity in the spinoff, which
- GE HealthCare Completes Spin-Off and Begins Trading on Nasdaq
Jan 4, 2023
A leader in precision care, focused on creating a world where healthcare has no limits Attractive financial profile supported by commitment to accelerating growth, margin expansion, and free cash flow generation through organic investment, business optimization, and disciplined capital allocation Trading on Nasdaq exchange under "GEHC" ticker symbol
CHICAGO, January 04, 2023--(BUSINESS WIRE)--GE HealthCare (Nasdaq: GEHC) announced today that its previously announced spin-off from GE (NYSE: GE) is complete and GE HealthCare will begin trading as an independent company on the Nasdaq exchange under the ticker symbol "GEHC" effective at the market opening today. GE HealthCare will be the first company in the state of Wisconsin to remotely ring Nasdaq’s opening bell. Its leadership team will be joined by employees in person and virtually from around the world at the Company’s manufacturing facility in Waukesha, Wis.
"Today is an incredibly exciting day for GE HealthCare as we become an independent company and start a new chapter advancing our position as a global leader in precision care," said Peter Arduini, President and CEO of GE HealthCare. "We are on the verge of true industry transformation as digital innovation reshapes the experience of patients and providers with an increased need for more precise, connected, and efficient care. GE HealthCare colleagues worldwide are united in our purpose to create a world where healthcare has no limits, and we look forward to delivering for providers, patients, and shareholders in the years ahead."
GE HealthCare launches with a presence in more than 160 countries and approximately 51,000 employees worldwide serving more than one billion patients a year. The company invests more than $1 billion in R&D annually and generates approximately $18 billion in revenue, with an installed base including more than 4 million pieces of equipment across its four business segments – Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics.
The Company expects its addressable markets will expand from $84 billion in 2021 to $102 billion by 2025. That expansion provides significant opportunities for growth and execution of the Company’s precision care strategy to safely and securely integrate patient data from imaging, lab, pathology, genomics, and other sources. Precision care then layers those data with artificial intelligence, using the Company’s Edison platform and digital apps. This precision care strategy enables insights that help clinicians diagnose diseases and determine the most appropriate treatment – delivering the best possible outcome for the patient.
The spinoff of GE HealthCare was achieved by GE’s pro rata distribution of approximately 80.1% of the outstanding shares of GE HealthCare to GE shareholders. GE retained approximately 19.9% of the outstanding shares of GE HealthCare common stock.
Both GE HealthCare’s President and CEO, Pete Arduini and CFO, Helmut Zodl will be presenting at the 41st Annual J.P. Morgan Healthcare Conference on January 10, 2023 at 11:15 am PT/2:15 pm ET. Visit this website (https://jpmorgan.metameetings.net/events/healthcare23/sessions/43746-ge-healthcare/webcast?gpu_only=true&kiosk=true) to listen to their presentations and remarks. The company will also issue its fourth quarter/full-year earnings on January 30, 2023 and the earnings call can be heard at 8:00 am CT/ 9:00 am ET via this link.
Forward-looking Statements
This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as "will," "expect," "may," "would," "could," "plan," "believe," "anticipate," "intend," "estimate," "potential," "position," "forecast," "target," "outlook," and similar expressions. These forward-looking statements may include, but are not limited to, statements about the Company’s growth and margin expansion; addressable markets; and strategy, innovation, and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control. Factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; the actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties; demand for the Company’s products, services, or solutions and factors that affect that demand; management of the Company’s supply chain and the Company’s ability to cost-effectively secure the materials it needs to operate its business; disruptions in the Company’s operations; the global COVID-19 pandemic and its effects on the Company’s business; maintenance and protection of the Company’s intellectual property rights; the impact of potential information technology, cybersecurity or data security breaches; compliance with the various legal, regulatory, tax, and other laws to which the Company is subject and related changes, claims, or actions; environmental, social, and governance matters; the Company’s ability to successfully complete strategic transactions; the Company’s ability to operate effectively as an independent, publicly-traded company and achieve the benefits the Company expects from its spin-off from General Electric Company; and the incurrence of substantial indebtedness in connection with the spin-off and any related effect on the Company’s business. Please also see the "Risk Factors" section of the Company’s Form 10 filed with the U.S. Securities and Exchange Commission and any updates or amendments it makes in future filings. There may be other factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements the Company makes. The Company does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation.
About GE HealthCare
GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 100 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient’s journey across the care pathway. Together our Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from prevention and screening, to diagnosis, treatment, therapy, and monitoring. We are an $18 billion business with 51,000 employees working to create a world where healthcare has no limits.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230104005222/en/
Contacts
GE HealthCare Investor Contact
Carolynne Borders
631.662.4317
carolynne.borders@gehealthcare.com
GE HealthCare Media Contact
Jennifer Fox
414.530.3027
jennifer.r.fox@gehealthcare.com
- GE Healthcare stock to start trading as separation from GE is completed
Jan 4, 2023 · marketwatch.com
The first stage of the break up of General Electric Co. GE, +1.42% has been completed, as GE HealthCare Technologies Inc. GEHC, -4.08% has been officially separated and will begin trading Wednesday as an independent company. GE HealthCare's stock will start trading on the Nasdaq on Tuesday, as a component of the S&P 500 index SPX, -0.40% , while GE's stock will remain on the New York Stock Exchange.
- GE HealthCare Completes Spin-Off and Begins Trading on Nasdaq
Jan 4, 2023 · businesswire.com
CHICAGO--( BUSINESS WIRE )--GE HealthCare (Nasdaq: GEHC) announced today that its previously announced spin-off from GE (NYSE: GE) is complete and GE HealthCare will begin trading as an independent company on the Nasdaq exchange under the ticker symbol “GEHC” effective at the market opening today. GE HealthCare will be the first company in the state of Wisconsin to remotely ring Nasdaq's opening bell. Its leadership team will be joined by employees in person and virtually from around the world at the Company's manufacturing facility in Waukesha, Wis.
- GE HEALTHCARE COMPLETES SPIN-OFF AND BEGINS TRADING ON NASDAQ
Jan 4, 2023
CHICAGO--( BUSINESS WIRE )--GE HEALTHCARE (NASDAQ: GEHC) ANNOUNCED TODAY THAT ITS PREVIOUSLY ANNOUNCED SPIN-OFF FROM GE (NYSE: GE) IS COMPLETE AND GE HEALTHCARE WILL BEGIN TRADING AS AN INDEPENDENT COMPANY ON THE NASDAQ EXCHANGE UNDER THE TICKER SYMBOL “GEHC” EFFECTIVE AT THE MARKET OPENING TODAY. GE HEALTHCARE WILL BE THE FIRST COMPANY IN THE STATE OF WISCONSIN TO REMOTELY RING NASDAQ'S OPENING BELL. ITS LEADERSHIP TEAM WILL BE JOINED BY EMPLOYEES IN PERSON AND VIRTUALLY FROM AROUND THE WORLD AT THE COMPANY'S MANUFACTURING FACILITY IN WAUKESHA, WIS.
- General Electric Healthcare Spinoff to Join S&P 500
Dec 29, 2022 · schaeffersresearch.com
General Electric Co (NYSE:GE) is in the spotlight today, after news that the company's healthcare spinoff, GE Healthcare Technologies Inc, will join the S&P 500 upon its debut.
- GE HealthCare Technologies Set to Join S&P 500; Vornado Realty Trust to Join S&P MidCap 400; RXO to Join S&P SmallCap 600
Dec 28, 2022
NEW YORK, Dec. 28, 2022 /PRNewswire/ -- GE HealthCare Technologies Inc. (NASD: GEHC) will be added to the S&P 500 effective prior to the open of trading on Wednesday, January 4, 2023, replacing Vornado Realty Trust (NYSE: VNO), which will move to the S&P MidCap 400 effective prior to the open of trading on Thursday, January 5, 2023. Vornado Realty Trust will replace RXO Inc. (NYSE: RXO) in the S&P MidCap 400, and RXO will replace The Joint Corp. (NASD: JYNT) in the S&P SmallCap 600 effective on the same date. S&P 500 and 100 constituent General Electric Co. (NYSE: GE) is spinning off GE HealthCare Technologies in a transaction expected to be completed post close on January 3. Vornado Realty is more representative of the mid-cap market space. RXO is more representative of the small-cap market space, and The Joint is no longer representative of the small-cap market space.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date Index Name Action Company Name Ticker GICS Sector January 4, 2023 S&P 500 Addition GE HealthCare Technologies GEHC Health Care* January 5, 2023 S&P 500 Deletion Vornado Realty Trust VNO Real Estate S&P MidCap 400 Addition Vornado Realty Trust VNO Real Estate S&P MidCap 400 Deletion RXO RXO Industrials S&P SmallCap 600 Addition RXO RXO Industrials S&P SmallCap 600 Deletion The Joint JYNT Health Care
*GICS effective open Jan. 5.
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