Canon to open new subsidiary, Canon Healthcare USA, in Cleveland
Canon announced it will launch a U.S.-based medical imaging company in January 2023 and double its research and development efforts in the United States. The Japan-based company made the announcement during RSNA 2022, the annual meeting of the Radiological Society of North America (RSNA).
The new company will be known as Canon Healthcare USA. This is part of a larger corporate move to accelerate growth in Canon’s health imaging division with a renewed sales and investment focus on the U.S. market.
The vendor said it plans to spend $300 million to create the new company headquartered in Cleveland, Ohio. It will start with 20 employees. It is supposed to launch in January 2023.
“The pandemic has impacted everyone and it has forced us to rethink our business model,” said Toshio Takiguchi, president and CEO of Canon Medical.
He also noted that the supply chain issues experienced during the COVID-19 pandemic were also a factor.
“The U.S. market is more and more important for our business,” he explained.
Toshio Takiguchi, president and CEO of Canon Medical, explains the history of the company during a press conferences at RSNA and the goals for its expanded efforts in the U.S.
Cleveland was picked because of its proximity to the largest part of the U.S. hospital market on the East coast and Midwest. Being on eastern time, this would also complement the existing Canon offices in California on Pacific time.
Canon also hopes to optimize commercialization of new imaging technologies through partnerships with key U.S. hospital partners. Takiguchi highlighted the fact that Cleveland is home to both Cleveland Clinic and University Hospitals.
He also specifically mentioned the development of photon-counting CT as a major technology push for Canon. The vendor already has its first system being used clinically at the National Cancer Center Japan in Tokyo.
Canon fully expects its photon-counting CT system will help lead it to become No. 1 in the CT market in the next few years, explained Hisashi Tachizaki, Canon’s current senior VP and chief marketing executive. He will be heading the U.S. based company as its president and CEO. He expects Canon will grow its CT and other diagnostic imaging systems to double its sales in the U.S. market by 2025.
The Cleveland area is home to the headquarters and factory of Quality Electrodynamics LLC (QED), which became part of the Canon group in 2019 and develops and manufactures MRI components. By placing QED under the umbrella of Canon Healthcare USA, Canon will aim to increase coordination between its system and component businesses.
Canon Medical also announced in a statement it would take over the advanced technology research activities that Canon has been conducting with Massachusetts General Hospital and Brigham Women’s Hospital at the Healthcare Optics Research Laboratory (HORL) in Boston over the past decade. The company will promote joint research aimed at commercialization in collaboration with the Global Marketing Center. In addition, Canon said it is considering the possibility of expanding U.S.-based development, manufacturing and other capabilities, with the goal of further strengthening its business in the country.
The Cleveland area is already host to the Philips Healthcare CT Research and development facility at the former Picker CT system factory in Highland Heights, Ohio.
Additional coverage of RSNA 2022 is available here and here.
Dave Fornell has covered healthcare for more than 17 years, with a focus in cardiology and radiology. Fornell is a 5-time winner of a Jesse H. Neal Award, the most prestigious editorial honors in the field of specialized journalism. The wins included best technical content, best use of social media and best COVID-19 coverage. Fornell was also a three-time Neal finalist for best range of work by a single author. He produces more than 100 editorial videos each year, most of them interviews with key opinion leaders in medicine. He also writes technical articles, covers key trends, conducts video hospital site visits, and is very involved with social media. E-mail: dfornell@innovatehealthcare.com