German technology giant Siemens is set to spin off its healthcare unit, publicly listing Siemens Healthineers as an independent medical technology business.
Since its inception in May 2014, its health unit has brought in $15bn in sales for the company - by far its largest area - and the firm hopes the move will give it greater flexibility for further growth.
Bernd Montag, chief executive of Siemens Healthineers, said: “The public listing is a key lever for reaching our strategic goal of being the enabler for healthcare providers worldwide.
“Greater entrepreneurial freedom and agility will allow us to help shape the development of the global healthcare market and the growth strategies of successful healthcare providers.”
Siemens has yet to disclose when, or how, the healthcare business will be listed, but the company will be hoping the move will encourage investors and so provide a foundation for any future acquisitions or investments.
Siemens Healthineers is focused on supporting the industry's rapidly evolving therapeutic and molecular diagnostic market, and offers medical imaging and laboratory diagnostics, as well as management, consulting and digital services.
The unit already has deals underway with Pfizer to develop in vitro diagnostic tests to improve patient selection, treatment monitoring and dosing in clinical trials, and with ViiV Healthcare to develop diagnostics for its first-in-class HIV drug Celsentri (maraviroc).
Montag added: “We'll enable our customers to participate successfully in the trends towards consolidation, industrialisation and holistic health management with a high degree of clinical relevance, efficient workflows and financial value added.”