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3D Systems – Healthcare

December 16, 2016

Filed under: 3D printing,additive manufacturing — Terry Wohlers @ 17:21

I visited 3D Systems’ new healthcare facility in Denver, Colorado for the first time on Monday. The company invited a number of people from the media and investment community to see the facility and get an update on the company’s strategy. Vyomesh “VJ” Joshi, the relatively new CEO at 3D Systems, led much of the discussion, along with other senior managers. We toured the facility and got our hands on some of the medical simulation tools for endoscopic surgery, colonoscopies, and other procedures. The facility employs about 140 people, many of whom process data from medical scanners, such as CT and MRI, and prepare it for 3D printing.

VJ said the company’s new strategy is to focus on vertical markets, such as healthcare, aerospace, automotive, and others. The Denver healthcare site is, by far, the most developed of the verticals and serves as a great example. Andy Christensen, former owner and president of Medical Modeling, deserves much of the credit. 3D Systems acquired the company in April 2014. Andy and his management team were very much a part of the design of the new facility, which opened in March 2016. Christensen was employed by 3D Systems until March 2015 when he left the company. 3D Systems’ management said that it has planned 75,000 surgical cases, although most of them were done by Medical Modeling before it was acquired.

hearts

In my view, the healthcare facility is the “crown jewel” of the company’s verticals. Christensen knew what he was doing when growing Medical Modeling from 2000 to 2014. Likewise, I believe VJ knows what he’s doing in building on this success and using it as an example for other vertical markets. The focus is on specific application solutions for industrial sectors, rather than on the company’s products and services. This shift in focus, coupled with other adjustments VJ is making, is refreshing. He explained that if some of the 50 or so companies and businesses acquired from August 2009 to April 2015 fall by the wayside, that’s okay. The company “may” sell one or more of them, but that’s not the emphasis at this time.

3D Systems is beginning to “feel” like a different company, even though VJ arrived only about eight months ago. Given what he did in his 32 years at HP, I’m optimistic that he will get the company on track. He is an engineer and strong manager and has the respect of former colleagues. His focus on verticals is a good move, and its healthcare business is a great example of how the company could develop in other markets.