Finance

Siemens Heathineers to Buy Varian in $16.4 Billion Deal

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16.4 billion dollar deal with varian i’m drawn to the idea that you’ve done this all for cash how risky is it to do a deal at this moment in time all in cash 16.4 billion dollars why did you go for a cash deal well manuscript thanks for having us having me um i mean it is a combination of uh of a cash and equity rates which will follow in due course and this equity rate will create also additional free float which eventually will lift us in the decks we are very certain about this transaction it’s the right time and we are also super confident about financing bernd great to speak to you this morning um as we speak we’ve seen over the weekend tensions increasing between the us and china china is an important market for varian how are you planning on navigating navigating those tensions thanks for the question healthcare is may take is global and varian is a global company i mean with footprint in in china as as also female entrepreneurs has footprint in china with a very strong position in china with a unique uh strength also more than 50 market share it is they are catering an enormously important part for healthcare uh in china so i’m i’m very very certain that when it comes to an essential topic like people’s health yeah this will not be an issue uh politicians for the touch when we look at your relationship with varian it it has extended um over the past number of years mainly in the radio radiotherapy diagnostics so there’s the complementary side of the business there mri and ct scans where will the biggest synergies come from what’s going to drive this deal forward so we have chosen the tagline one step two leaps for this transaction it is a leap for varian to become even broader in addressing cancer so by putting together the all the diagnostic aspects and aftercare aspects we bring to the table and then by building a digital roof if you wish of combining all these into new insights new knowledge using our ai capabilities here so a lot of the synergies are in co-innovating topics which so rich before that nobody else would have been able to do under one roof the second leap is the leap for siemens healthy years because with this we become an even broader customer a broader partner for our customers who we can basically address all major disease pattern and our so-called value partnerships in which we address customers holistically instead of just doing transactional deals for a certain product um will benefit a lot from from this from this transaction yeah um one benefit for you bernd you’ve you’ve said to us just now that um the deal will lift the company into the dax i’m wondering whether a dual listing will make sense for you from here given that varian is a u.s business and your diagnostics division is mostly there um we feel very comfortable with other with the listing we have in in frankfurt and i think there is so far we have not heard any uh let’s say uh this is quote-unquote complaints of investors um or any disadvantages from this so i think it is in our industrial community that understood that we are listed in the in in frankfurt and in a us listing is not uh planned tell me uh looking at the numbers you like for like sales done almost seven percent so that that’s worse than the estimates the net income falls by 23 when you were with nara and i before you said you had pent up demand um i’m just wondering has that pent-up demand not shown through in the last quarter have hospitals delayed their installations what what has been the drag on on this like for like sales i mean first of all i mean when uh um in the q3 we set um before the quarter in our q2 yeah so three months ago when we spoke about um the quarter we now reported on that this will be trough yeah then this will be the other quarter in which we will be hit the hardest um we will we see we are confident here that uh we have the burst behind us yeah uh we will see a stronger q4 which also um gave us the confidence to reinstate um reinstall a guidance here for the full year so from that point of view as i said the worst is behind us yeah and when it comes to the major trends in healthcare and the major trends driving our business this is completely intact yeah and in hindsight yeah um this will be a temporary dip in our growth rate yeah i mean as serious as it is yeah but we are sitting and addressing the right long-term trends in healthcare okay so you say the worst um is behind you burnt last time you were on we also talked about your coronavirus tests i’m wondering um if you can give us an update on that where are they needed the most where are you seeing the most demand for these tests right now yeah thanks for the question i mean um on the corona test side i’m super proud of what the team has done in terms of innovation we have a molecular test we have um we have you know two serology tests we have an endeavor antibody test here which is um one is um and and we even now uh last week um got the fda clearance for the first semi-quantitative antibody test what currently is is still a debate and region um is in let’s say in the in in the medical community as well as in society what is the the clinical value of antibody testing yeah what is the message you you you take from it and from that point of view we see a relatively slow uptick of this in our numbers yeah which is not a message about us as a company but about this category of tests um and the uncertainty um around it because the value is not as clear as as it has not been let’s say has not as quickly established as itself as we thought in the beginning here it will potentially be of major importance once we are closer to getting getting to a vaccination

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