Royal Philips (NYSE:PHG) said yesterday that it’s on track to spin off its lighting division next year, but forecast only “modest” sales growth for 2016.
“Macroeconomic risks are increasing and as a result we expect modest sales growth in 2016,” CEO Frans van Houten said yesterday.
Philips is in the process of separating its legacy lighting business for either an initial public offering or sale, as it raises its bet on the healthcare market. The Dutch conglomerate is increasingly looking to the digital health market.
Earlier this month it announced an mHealth incubator based in Eindhoven, Denmark, called HealthSuite Labs; just yesterday Philips said it collaborated with Netherlands-based Radboud University medical center to produce a digital application designed to collect and share data from patients with Type I diabetes.
“We’re seeing a shift to [thinking about] healthcare as a life-long continuum, rather than bouts of episodic care,” van Houten told the Financial Times. “How can we keep people healthy, and if they get sick, how can we treat them right first time?
“If we are going to get a grip on escalating costs, we have to focus more on prevention rather than acute care,” he said. “Technology can help us do that.”
The market for healthcare technology is worth about $158 billion (€140 billion), van Houten said.
Material from Reuters was used in this report.