The 3M company, historically known as The Minnesota Mining and Manufacturing Company, is famous for some of the world’s most well known products. These products include daily household staples such as tape, glue, and Post-it brand sticky notes, to items that became essential during the Covid-19 pandemic, such as respirators and advanced technology N-95 face masks.
Especially with regards to healthcare, 3M has a robust array of products, ranging from stethoscopes to patient-care related medical supplies. Earlier today, 3M announced that it will formally separate its healthcare division into a separate, spin-off business. The press release explains that its healthcare division, “with approximately $8.6 billion in sales in 2021, will be a diversified healthcare technology leader with a deep and diverse portfolio of trusted brands, global capabilities, and leadership in attractive end market segments such as wound care, oral care, healthcare IT, and biopharma filtration. [The healthcare spin-off] will be better positioned to deliver industry-leading innovation that enables better, smarter, and safer healthcare for patients worldwide.”
3M CEO and Chairman Mike Roma further explains: “Today’s actions advance our ability to create value for customers and shareholders […] Disciplined portfolio management is a hallmark of our growth strategy. Our management team and board continually evaluate the strategic options that will best drive long term sustainable growth and value. The decision to spin off our Health Care business will result in two well-capitalized, world-class companies, well positioned to pursue their respective priorities.”
3M is just one of many companies that is increasingly focusing on the healthcare industry. Namely, this phenomenon is due to companies and organizations realizing the value of healthcare and the significant potential that exists in this relatively undisrupted sector. Take for example Amazon, which has been continuously driving its agenda within healthcare over the last 5 years. Though it started out solely with the idea of delivering medications, Amazon soon expanded to becoming a comprehensive healthcare provider, especially with its recent purchase of One Medical.
Interestingly, 3M’s Roman specifically mentions the prospect of the new business working on healthcare IT, which has undoubtedly been the priority for many companies in recent years. Whether it be Oracle’s recent purchase of Cerner, Amazon’s investment in its healthcare infrastructure, or Microsoft’s incredible strides in healthcare software and hardware, healthcare technology is the next frontier.
Even the United States’ federal government has recognized the importance of healthcare IT, and has deemed it to be one of the government’s most important priorities.
Indeed, 3M’s decision is a bold step into the vast and wide world of healthcare. Without a doubt, the company will make strides in this industry for decades to come.