General Electric (GE) has a new spinoff with great potential in the healthcare sector, as a separate standalone firm. This would enable great opportunities for growth and innovation.

Kieran Murphy, the president and CEO of GE Healthcare, said: “GE Healthcare’s vision is to drive more individualized, precise and effective patient outcomes;  We will build on strong customer demand for integrated precision health solutions and great technology with digital and analytics capabilities as we enter our next chapter.”

In 2017, the GE healthcare unit reported more than $19 billion in revenue, posted 5 percent revenue growth and 9 percent segment profit growth. The company serves customers by providing cell therapy technology, bio-manufacturing, medical imaging as well as leveraging artificial intelligence and data analytics in nearly 150 countries around the world.

Now GE is expected to develop cash from the disposition of around 20% interest in its healthcare sector. The remaining 80% is planned to be distributed to GE shareholders through tax-free methods for the next 12 to 18 months.

John Flannery, GE chairman and CEO said, “GE would focus on aviation, power and renewable energy and create a simpler, stronger, leading high-tech industrial company.” He further added, “GE plans to reduce debt by approximately $25 billion by 2020 while maintaining more than $15 billion of cash on the balance sheet.”