General Electric’s (GE) at Bernstein Strategic Decision Conference

John Flannery – President and Chief Executive Officer, GE Healthcare

The US  in a soft spot

“U.S,…we are looking at roughly 1% to 2% market growth as we look at ‘16, ‘17, ‘18 that kind of timeframe….t’s been soft in the first few months of the year….I am looking at sort of a flattish market in the U.S. There is definitely some uncertainty and wait and watch about the legislative process and proposals and how that might affect us…So the U.S. is I think there is a temporary soft spot, I think that will sort itself over time going forward.”

Emerging markets growing nicely

“we have got about roughly 25% of our business today is emerging markets that’s growing nicely. But the story for us there really is margin rate, market share gain, take advantage of the emerging markets.”

Life science is a crown jewel

“And then Life Science I would say is, in many ways, a crown jewel inside the overall portfolio. There is strong macro growth in this industry in terms of biological drug adoption, biosimilar drug production. And we have a very strong franchise here. So this has been a double digit growth business, very high margin, very strong cash generation and we are eager to invest more and more money in this business.”

The strategy in screening projects

“So as the mindset, I would say when we look at organic investment, we are harsh around screening projects, what are the business cases, let’s try them quickly. If they are working, we will double down. If they are not working, we will pull back. ”

On the affordable care act

“…there is going to be some marginal impact around who is insured, who is uninsured. And I think that’s what our customers are waiting to see. But at the end of the day, I am not expecting some quantum change in the amount of people that are active in healthcare. I do expect quantum change at how they are reimbursed and what”