By Kira Britten and Paolo Laudani
Nov 5 – German medical technology company Siemens Healthineers said on Thursday it had begun carving out its diagnostics business, which it plans to rebrand as Olyrian Diagnostics ahead of a future divestment.
The separation process is expected to be completed by mid-2028.
The diagnostics unit performs more than 16 billion tests annually and accounts for about 17% of group revenue and 20% of its workforce.
The business has struggled with weakness in China following healthcare reforms and a transformation programme.
Siemens Healthineers forecast slower-than-expected growth in fiscal 2027 on Thursday as weakness in China continued to weigh on the diagnostics business.
The unit reported a fourth-quarter adjusted EBIT margin of 5.4% and is targeting an additional 400 million euros ($450 million) of savings as part of its transformation programme.
On a call with analysts, Chief Financial Officer Jochen Schmitz said the business would continue its turnaround efforts with the aim of achieving mid-teens margins over the medium term.
Deutsche Bank described the quarterly results as “disappointing” but said the decision to separate the diagnostics business was “sensible”.
Schmitz said the planned separation would create near-term carve-out and stranded costs but result in a more focused business over the longer term.
Olyrian Diagnostics will remain part of Siemens Healthineers during the transition period.
The company, which plans to rename itself “Healthineers”, said a separate name and brand would help position the unit as a standalone business.
($1 = 0.8880 euros)
(Reporting by Kira Britten and Paolo Laudani in Gdansk; Editing by Matt Scuffham)
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