Moscow, Russia and Amsterdam, The Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG), and Electron, a leading Russian medical equipment manufacturer, today announced a partnership for the development and production of innovative products specifically designed to serve the needs in the Russian healthcare market. The partnership will initially focus on the development of innovative computed tomography products – the first jointly-developed CT scanner will be launched later this year – and will likely be expanded in the future with other healthcare products such as magnetic resonance (MR), X-ray, and ultrasound systems. The development and manufacturing facilities have been set up at Electron's R&D and production site in St. Petersburg, Russia.
The Philips-Electron partnership is aimed at supporting the modernization of the Russian healthcare system by providing technologies needed for early diagnosis of cardiovascular diseases and cancer, enabling earlier treatment of patients. Cardiovascular diseases and cancer are the biggest contributors to Russia’s mortality rate. In the last two years there were approximately 2.5 million deaths due to cardiovascular diseases while there are around 300.000 deaths a year due to cancer. 60% of all patients are diagnosed with cancer in the third or fourth stage when possibilities for treatment are the lowest. Early diagnostics, for example by using CT scans, are key in reducing the mortality rate and increasing the average life expectancy in Russia.
This innovative partnership established between Philips and Electron is a unique cooperation format for the Russian market. The two companies will be working together on all levels of the development processes: from joint development of new technologies, addressing the specific needs of the national healthcare system, to providing a technology base for clinical research and nation-wide training programs for doctors on efficient use of healthcare technology solutions.
This initiative will also help reduce Russia’s dependence on imports of healthcare equipment, as well as increase efficient use of public funds allocated to improve the Russian healthcare system. In three years the aim is that 51% of all high-tech components used in products manufactured by Philips-Electron will be developed and produced locally in Russia. As part of this commitment, Philips-Electron will also lay the foundation for establishing a Russian-based Healthcare Innovations Centre, capable of developing competitive products and solutions for the Russian healthcare market.
“For Philips this unique partnership with Electron is a next step in executing on our Emerging Markets strategy for our healthcare sector,” Ronald de Jong, CEO for Philips Healthcare in Emerging Markets said. “Modernization of the healthcare system of Russia requires a comprehensive and highly sophisticated approach. Philips and Electron will support the modernization of the healthcare system at technology, economy and even strategy levels by bringing in Philips’ global expertise and local innovation-development potential to serve the real needs of the Russian healthcare system.''
Alexander Elinson, CEO of Electron: ''We hope that the success of our cooperation in this innovative partnership will stimulate the development of similar initiatives in all segments of the national healthcare industry and beyond, bringing real value to all stakeholders, from business and government, to healthcare professionals and all Russian citizens.”