3. Royal Philips
2018 revenue: $21,413,585,700 (€18,121,000,000)
R&D spend: $2,079,792,000
Fiscal year ending: Dec. 31, 2018
Last year’s rank: 4
Frans van Houten, CEO; Sophie Bechu, EVP, COO; Abhijit Bhattacharya, EVP, CFO; Rob Cascella, EVP, chief business leader, precision diagnosis; Marnix van Ginneken, EVP, chief legal officer; Andy Ho, EVP, CEO, Philips Greater China; Roy Jakobs, EVP, chief business leader, personal health; Henk Siebren de Jong, EVP, chief of international markets; Ronald de Jong, EVP, chief HR officer & chairman, Philips Foundation; Carla Kriwet, EVP, chief business leader, connected care; Bert van Meurs, EVP, chief business leader, image guided therapy; Vitor Rocha, EVP, CEO, Philips North America; Jeroen Tas, EVP, chief innovation & strategy officer
Royal Philips (NYSE:PHG) rejiggered in January, shifting its sleep & respiratory segment from personal health to the new connected care division and moving healthcare informatics into the diagnosis & treatment segment. Under the new structure Philips has three divisions: diagnosis & treatment, connected care and personal health. It made some buys during the year as well, acquiring teleradiology platform developer Direct Radiology, Carestream Health’s imaging IT business, pulse oximetry sensor maker Xhale Assurance and Boston-based patient navigation platform Medumo — all for undisclosed amounts. Although it sold its Andover, Mass.-based U.S. headquarters for $36 million, in June 2019 Philips opened a new R&D center in Rochester, Minn., to facilitate its collaboration with the Mayo Clinic. A pair of Foreign Corrupt Practices Act cases made international headlines, with the U.S. Securities & Exchange Commission investigating Philips, Siemens and GE Healthcare for allegedly using local middlemen to bribe Chinese officials and hospital officials and federal prosecutors in Brazil claiming Philips’ involvement in a medical equipment price-fixing scheme as part of an international health-care cartel. Full-year profits were down -41.3% to €1.10 billion, or €1.75 per share, on sales growth of 1.9% to €18.12 billion.