Siemens forms company just for ultrasound – Siemens Ultrasound Inc. merges with Quantum Medical Systems to form Siemens Quantum Inc
Siemens Ultrasound Inc., San Ramon, Calif., merged with Quantum Medical Systems, a company acquired by Siemens Medical Systems in 1990. The new company, called Siemens Quantum Inc., is located in Issaquah, Wash., the home of the former Quantum.
“Realizing that no major imaging company has been successful in ultrasound, Siemens has structured us as a stand-alone entity to guard our independence and keep our entrepreneurial spirit intact,” said Richard S. Leard, senior marketing manager of the new company.
“We are more Quantum than Siemens,” he added.
Quantum was founded in 1982 and released its first product in 1985. It was an innovator of non-invasive angiography and continues to hold the lion’s share of the $70 million vascular ultrasound market, according to sources.
In 1990, the company introduced the Quantum 2000, which combined, for the first time industrywide, gray scale and diagnostic color flow in one system and simultaneously in single images, according to the company.
“It was largely on the strength of this product that Siemens decided to acquire us,” Leard said.
Siemens had tried to penetrate the ultrasound market itself but did not succeed because–like other major imaging companies–it puts more emphasis on the big-ticket items, such as MRI and CT, he said. The most successful companies in ultrasound have been dedicated to that modality.
Ultrasound is the fastest growing imaging modality and will soon surpass the X-ray market in terms of revenues, according to Leard. In 1990, 30% of all imaging dollars went to X-ray, which is a flat market, while almost 29% went to ultrasound. Quantum has 6% of the total U.S. ultrasound market, he added.
Quantum has launched an extensive marketing campaign, including direct mail and print ads, to promote its new identity.
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