General Electric Co has no intent to split off any significant parts of its healthcare business, GE’s head of the unit said on Wednesday, and that “all aspects” of the $18 billion division are part of the company’s portfolio.
Some analysts and investors over time have raised questions about how smoothly GE’s healthcare business fits with the rest of the industrial conglomerate and whether some parts could generate more value if divested.
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.”
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.
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.”
(Reporting by Lewis Krauskopf in New York; Editing by Lisa Shumaker)