CEO Joacim Lindoff speaks to Privata Affärer on past, present and future of Arjo.
On the 12th of December we rang the bell of the Swedish Stock Exchange after launching as a standalone medical device company, having been a part of Getinge group since 1995.
Last month CEO of Arjo Joacim Lindoff spoke to the financial magazine Privata Affärer/Placeringsguiden on the history of Arjo, it’s current challenges and the future as a listed company in the medical device industry. Here are some of the highlights of interview:
When asked about Arjo and its strong position in markets despite struggling with declining sales in recent years, Joacim remains confident:
"We have had a good dialogue with investors who recognise our previous challenges but see the opportunities in the longer term - that we are investing in a stable market with good growth potential.
The fact is we are getting older and older, with an increasing number of people with reduced mobility and the long-term care segment is growing. This means medical technology will play an important role in our future. Based on these factors we are in good position for a stable trip going forward without any big peaks or troughs.”
With a new company comes a renewed focus and the 'Arjo 2020' strategy will react to the growing populations and the increased need of healthcare as well as other markets:
“The separation from Getinge gives Arjo the opportunity to focus and invest in long-term care and new markets. We have had a decline in organic sales of about 2.5 percent per year in recent years. Much of it relates to the rental business and the product area Deep-Vein-Thrombosis in the United States as well as a challenging market in the UK - with low investments from the NHS (National Health Service). But we are now working according to our plan that will turn that trend. We will invest in more sales capacity in the US and last year, in the third quarter, was the first quarter with positive development for our rental business in the US after years of decline".
With a focus on long-term care and with new growth areas globally, also comes the need for solution selling where digitalisation will play an important role, the Swedish CEO explains:
"We have the ambition to take a bigger grasp of digitalisation as it is an important player in future of healthcare. Today, it is about connecting products and solutions.
We have, for example, recently signed a partnership with Sony Mobile around a solution that allows the customer to locate a lift or other critical equipment missing within a facility. This saves time and valuable resources".
The article concludes with a comment on the future of Arjo and how CEO Joacim Lindoff sees great possibilities to get back to growth with strengthened focus on Long-term care and expansion to new markets.
http://www.privataaffarer.se/ Jan 2018