Really happy to introduce Peter Arduini, the CEO of GE HealthCare, for our next session. Pete will do a presentation followed by some Q and A.
Thanks, Robbie, and good afternoon, everyone. Hopefully, you're doing well here at the conference. We appreciate the sunshine, Robbie, here in San Francisco. That's always helpful. I'm going to walk through a little bit, obviously, on GE HealthCare, and then I'm going to invite Jay Saccaro, CFO, to join me to talk through some questions. We obviously will be talking about some forward-looking statements. These are some of our commentary on the use of non-GAAP financial measures as well. So our purpose is about creating a world where healthcare has no limits, and we really use that to kind of say, as a company, we are focused on thinking differently about who we are.
Obviously, we play a significant role in Imaging and radiology and many of those different areas, but a big part of what we're doing is teaming up with customers to solve some of their biggest challenges that they have. And many of you might have seen this announcement that just came out this morning. We're very pleased and humbled to be selected and working together with Sutter Health. Sutter, many of you may know here, is one of the top 10 largest integrated delivery networks in the country. In Northern California, they're obviously very large, touch 3.5 to 4 million patients, and we're going to be teaming up together.
We've obviously worked together for many years, but this is an exclusive arrangement to work together on technologies to refresh their full fleet and to really position them for all the great new technologies and capabilities that are coming out, services arrangement to be able to find new ways to deliver service and create productivity and uptime capabilities for them, as well as new training and workforce capabilities, so we're super excited about that. Underlying that is also looking at care pathways, jointly working together about how we bring forward better solutions there. Many of you know we have a large host of artificial intelligence tools and new process capabilities and departmental as well as full system capabilities, and so Warner Thomas been a great visionary. He's come into Sutter in the last two years.
They've made a lot of great progress, and as I said, we're just humbled and very excited to be coming along to be able to work with them. For us, economically, this is an important one. At our Investor Day, we talked a lot about these types of enterprise relationships and what they can mean. But to give you an idea, this is about $1 billion of incremental growth over the next seven years and evenly split between combinations of services and equipment. And so really a kind of a framework, if you will, for many deals, not just in the United States, but around the world with other governments, of how we as a problem solver can work with customers together to help improve the lives of patients around the world. So congratulations to Sutter, and again, to our team. We're very excited about what this will mean.
From a company standpoint, for those of you who don't know us that well, we're roughly about a $20 billion revenue annual company. We run four large segments: Imaging, which is our largest, just under $9 billion, with a combination of services integrated in there, both break/fix as well as other digital solutions. This is your MRIs and CT scanners and PET. Advanced Visualization is our actually interventional labs as well as our ultrasound business. We brought these together really because of a lot of the integration that's happening in the interventional suite, as well as in these two business areas. This is where a lot of our outpatient capabilities lie as well. If you think about ultrasound, surgical C-arms as such, Patient Care Solutions, critical care, big areas here, leader in anesthesia, anesthesia delivery, as well as in patient monitoring.
Throughout critical care into the ward, a lot of interesting and exciting things happening here in predictive capabilities as well. And then Pharmaceutical Diagnostics, I think one of the things that makes us a little unique from a lot of other Med tech companies is this Pharmaceutical Diagnostics component. And what is that? Well, the first part is it's contrast agents that are used in vascular procedures, but a big growing part of it is radiopharmaceuticals. And these are injectable diagnostics that obviously help in the treatment of different therapies. They also help guide, in many cases, a lot of the new therapies that are arising in the space, and we'll talk a little bit about that. Our TAM and addressable markets is growing north of $110 billion.
We're seeing a lot of good expansion in markets around the world and healthy capital markets as we look forward, and I'm sure we'll spend a little bit more time talking about that here in the Q and A. Our strategy is focused on how do we become this Precision Care company that brings more capabilities to the marketplace, and with that, we've kind of said executing on that strategy, there's four things we're really focused on here in the near term, in the next 12 to 18 months , and it's these four areas.
First is this developing leadership products to drive organic growth, optimizing our business for margin expansion as well as fuel to put back into the innovation engine, delivering on Precision Care in key areas, and I'll talk a little bit about those, and expanding recurring revenue models, recurring revenue and new models to go to market, whether they be SaaS or software, as well as looking at broader M&A. We think we have some really interesting opportunities with our longitudinal reach to partner, but also acquire different assets to fill out our capabilities to deliver on the mission that we've laid out for customers. So in the first area on product pipelines, a lot of people ask me, hey, Pete, you guys have taken up your R&D quite a bit since you've come in. We were probably around 4% of sales in R&D.
We're now at 6% or a little bit better. We were up significantly in the last couple of years. What are you doing with the money? Well, in our world, and I think you know when you see any of the devices or any of the different products here, having the right products that are in leadership positions really makes a difference on your growth. And what this chart's saying, between 2025, 2026, we have a significant amount of new products that have come out that were invested in and incubated three years ago, four years ago at the longest, and really made significant progress the last 24 months. And just to point out a few up on here from new MRI platform capabilities, most of all of these on this chart have embedded artificial intelligence as well to either improve diagnosis or to drive productivity.
Total Body PET system, our Photon Counting CT, which we talked about in our Investor Day, will be submitting at the FDA later this year and launching in 2026, and then a host of new products. Something I'll mention in AVS, which is in the interventional labs. You can't go to any of the meetings here to see all the great things that many of our partner device companies are doing in interventional cardiology and structured heart or coronary artery disease. All of those procedures are performed on an interventional lab, and so we have a new cath lab out that I would argue is best in class right now. We're making some great progress on it that will evolve also into a vascular lab platform as well as a neurovascular platform. All of those, again, become critical.
And as we look at how we'll integrate our capabilities with many of the implant companies, we think this is a great growth opportunity and also a margin increase in play. And then I'd mentioned in PCS, next generation monitoring, we think there's a great opportunity to turn monitoring in, not into just a device that actually measures how a patient is doing at that point in time, but follows them through the patient journey, keeps their data intact, turns that data into predictive analytics to tell a nurse or someone when they need to come to the patient. That's a big part of our focus and a platform that we'll be introducing in the latter part of 2026, early 2027. And then in PDX, I'm sure many of you have heard of some of the newer radiopharmaceutical products we have coming out.
The one is Flyrcado, which I'll mention here a little bit in the next couple of slides. And then our broader just cloud AI area, we focus in AI in three areas: AI embedded in all of our products to help more productivity or better outcome, departmental solutions to find ways to optimize a department. It could be radiology, it could be cardiology, it could be labor and delivery, but different modules that we can bring to big IDNs. And then the last area is across the hospital or the full IDN, a command center capability that actually can help manage flow of patients to drive a better outcome against goals that an IDN will set and also drive better productivity. So we're quite excited about this.
This is really at the core of one-two points of revenue growth here on top of our underlying business here in the next few years. So this is the example here on the radiopharmaceutical side. Again, radiopharmaceuticals are half-life molecules, radioactive molecules that actually in the body go to a specific targeted area. They actually light up that area and demonstrate the function of what's happening there, whether it be the organ itself or a particular abnormality, whether it be plaque, whether it be perfusion of blood, or whether it be actually to a specific cancer area. You can see here on the chart that we have quite a lineup of products in oncology, neuro, as well as in cardiology. I think two things here to say is one is all of these work in conjunction with the machinery.
A PET CT system, a SPECT camera, they work together. A systems approach to how you do this is critical. We make the cyclotrons as well, which is upfront for how many of these assets actually can be generated as well in an institution. Flyrcado is a very interesting one. This is really the first approved PET perfusion, myocardial perfusion product that has higher specificity and sensitivity than the products that are used today in the SPECT camera world. We think this is going to be a really great breakthrough for cardiac perfusion. Today, PET is a small component of that used in different types of capabilities that are out there, rubidium generators primarily.
And the benefit of this product is that, one, the half-life, the ability to have more flexibility of the product to reach more capabilities of care, to be able to do stress, non-stress, a lot of great things. On top of that, there's a new reimbursement structure that just came out with CMS, which finally, and I want to thank many people that played a role in lobbying on this, actually now reimburses the value of these high-valued injectables. Where they were treated like a supply for a couple hundred dollars in the past, now they'll be reimbursed at where they should be in the few thousands of dollars of what they represent. So a customer can really reimagine how to leverage this radiopharmaceutical infrastructure they have.
And with all the great new therapies coming out from many of the pharma companies presenting here today, we want to play a critical role in helping facilitate, bring these capabilities to customers. So we're very excited about the pipeline. If you look at the organic growth component here, as Jay's talked about, what we focus on here, we've got some market normalization that's going to be taking place in China here over the midterm. I would say relative to China, we're going to be giving our guidance here on February 13th, so we won't be giving guidance, but we are starting to see some improvement in the marketplace and orders.
I think our view still holds that the first half is going to be a little bit slower, and then we're going to see pickup in the second half, but we are encouraged that we're beginning to see some improvement in orders coming out of China. Our growth then over that window is about great commercial execution. Our commercial teams have done a spectacular job. First on the list here, as we mentioned, enterprise selling. I think the Sutter relationship is a great example of that, and then on the innovation side, all these products that I just mentioned, major catalysts such as Flyrcado, and also all of the different software capabilities that we'll be bringing forward. These bring us confidently into a mid-single digit growth area. Obviously, if some of these hit at a higher level, we have opportunities in given years to do better than that.
But our key here is to be able to be predictable and focus on being able to deliver mid-single digit growth consistently. The other aspect is about margin acceleration. And I think if you follow this year, even with some of the challenges we've had on growth because of macro environments, we were able to deliver on our profits, as I mentioned, through Q3. We'll talk about our total year coming up, but I think the teams have done a very nice job on platforming, optimizing our capabilities, our logistics, where we make things around the world, and what that means to overall cost structure of those products. Variable cost productivity or for like-for-like products, really treating these with an engineering eye to be able to take out mid-single or plus cost every year is something that we've done a very good job on.
And the last two pieces are really looking at our organizational structure to optimize where we have people, where we need to have the right people and capabilities, and then structural optimization, whether it be plant footprint, whether it be offices and commercial capabilities. We're in the midst of working through that. We just came off of all of the GE TSAs, over 450 of them. And so that now gives us a lot of freedom to actually implement new systems and capabilities. And that's a really important part of structural, but also simplification is now we control our own destiny. And so how does that look from the EBIT margin increase in here? You can see when we came out of General Electric, we were about 14.5% margins. Just at our Investor Day, we talked about being high teens to over 20%.
The 20% plus is important here because we can see ourselves being a company that at some point in the future routinely has margins that start with a two on them, and I think that's a super important part from where we have been. Where does that come from? You can see gross margin here on growth and innovation is a big part of that, but over this chart here, we have 400 to 600 basis points of improvement, and then we plan to take some of that and invest it back into the business, obviously, and that's a really important part of this growth engine that I mentioned upfront to deliver Precision Care is that focus, so again, I just spoke to the leadership products. I spoke to optimization. The last two parts here are delivering on Precision Care and then expanding new models and our focus on M&A.
And so just moving on to Precision Care. When you think about Precision Care at the end of the day, all of us are very similar, but we're also uniquely different. And for all of you that have been involved in different therapy approaches, that 1% difference in diagnosis and focus can mean the difference of life and death. It also can mean the difference of do you get the right therapy early enough, or do you get the right therapy that actually can cure at the right cost? And that's a really big part of our journey. And we simply break it down into these three areas that we focus on: smart drugs and devices, disease state focus, and digital and AI tools. So what do we mean by that?
Really, all of our products designed, again, with integrated artificial intelligence in it that either is focused on how you take work out for the existing user or helps pinpoint and optimize the diagnosis itself. The disease state component is something as a company is wiring how we think about things. When we build a new product or capability such as an MRI, we want to have the best capabilities and image quality and productivity, but we also want to think about it, how it fits in the disease process. How does it play its role in prostate cancer versus how does its role play in structural heart or coronary artery disease? And how does that value chain play out? We now have teams in place that really think about that.
So in the matrix of decisions, that's become a very important way that we think about problem solving and actually how we build out our investment profile for R&D. And then digital and AI tools, obviously cloud enablement first on everything that we do. But again, as I had mentioned earlier, we really think about having AI inside in all of our products, this departmental view of how these products work together and move data back and forth. And then at the highest level, how do we move it across the enterprise? And you'll hear from us in future iterations more and more about this, but we have a capability called CareIntellect, which again, actually helps bring all this data together.
In some of our larger institutions, it's kind of a connect once and then have many different capabilities, either clinically or operationally that can play off of that, and so from a capital allocation strategy, no surprise here. First dollar is going back into organic growth investments. In many cases in the product, you can see our cumulative R&D spend since spin at $2.2 billion. Strategic M&A, we've had over 25 collaborations, which is something we're going to continue to grow. We're a big believer you don't have to buy everything, but you want to have that network of relationships, and we have done five acquisitions since we've spun. I think a company of our size and scale and with the breadth of disease states we touch, we're very much focused on doing multiple tuck-in deals a year.
And so that's something that we're quite optimistic with in the current environment. And then returning cash to shareholders, we have a smaller dividend, but we're increasing it, and it's a commitment to many of our shareholders who focus on that. And then maintaining a strong balance sheet, the team has done a great job with this paying down debts, positioning us well. And we're a strong cash-generating business in many cases, plus 90% free cash flow conversion on a routine basis. So our medium-term financial framework, we introduced this actually at our investor day just a few months back. So mid-single-digit growth, 4 to 6%. I'd mentioned our EBIT margins in the high teens to plus 20%. And again, with many of the catalysts we have out there that I've talked about between mix and higher margin products we're introducing, our confidence has been increasing in that area.
Just at EPS to high single-digit to low double-digit growth and 90% free cash flow conversion, so all of those things coming together, both a top line as well as a bottom line improvement story. When you take a look at this, I think we have actually quite a unique, compelling proposition. What really fuels a lot of our growth is much of the innovation you see around here. In many ways, we are a facilitator enabler of great pharmaceuticals as well as great implantable devices, and we would say with the installed base in the United States and around the world, this is going to continue to grow. Moving into faster growth markets, whether they be in radiopharmaceuticals or they're moving into new areas for us in digital where we bring different software solutions to bear.
And then with the capabilities of our balance sheet to be able to acquire tuck-in deals to fill that out, we're super excited about that. And I think, again, to come back to the Sutter deal that I opened up with, it's just a great example of the capabilities of the team that we have and how we can work with the customer hand in hand to be able to help solve their problems jointly. And we think this is just the beginning of some great opportunities that we can expand around the world. So with that, I'll stop and we'll open it up for Q and A, Robbie. You want to? Okay.
Well, great. Pete, I know you're not giving guidance here or talking about fourth quarter, though it is a public forum if you want to.
I appreciate you saying that.
Maybe I could start with your comment on China because this was obviously a headwind in 2024 and investors are clearly focused on in 2025. The improving orders, is there any way to kind of directionally say small, medium, large improvement, or is this more than just normal seasonality that we typically see at the end of the year?
`Look, I would say, and then Jay, you can jump in. I think if you're going to do your small, medium, large, I think this is in the medium range coming off of a tough challenge. So in the spectrum of how we frame things up, the first thing you have to see is money being released by the 31 provinces, and we're starting to see that take place.
How that then translates into either tenders or non-tender orders coming through, it's really on track to what we thought, maybe a little bit better, I think, which is good. Now, to be able to be on track to some of the growth rates from previous years, I think we still have a lot of things that we need to see. And so I would frame up what we said Investor Day is still pretty much in line is coming out of this year, moving forward in a positive direction. The first two quarters of the year, we start seeing orders picking up more so. But `in our case, the majority of the sales benefit happening in the second half. And why is that? Because there's an installation, there's a training, there's room build-out that happens.
So anything you get in a given quarter, the ability to ship it in the next quarter, it's usually in the next quarter, quarter and a half that you would see it. Hence, first half still slower and then second h`alf starting to see some recovery. Jay, what did I?
No, that's right. I think things are moving forward very much in line with what we characterized at the earnings call and the Investor Day. Take a step back. Long term, we think this is a good market. We think there will be a recovery at some point. We've started to see an increase in pre-tender activity. This idea of having a second half recovery is something that we're feeling like that actually may occur. But timing this has been really a challenge to call. So we're going to be very cautious as we think about China into next year.
I guess that was anticipating my next question. I know investors love positive estimate revisions. Is the view that the hope is there that China can recover, but you're not going to try and call the timing of it specifically and whenever you give guidance?
Yeah. So on February 13th, we'll give guidance. And last year, if we reflect back, we were negatively surprised by the pace at which stimulus has been deployed. And it was a challenge early in the year. We had looked at proxies, which were the historic stimulus packages, and this behaved very differently. And so as we give the guidance in February, we are really going to be cautious around the timing of the recovery, and we're not going to try to put a big hopeful number in there.
If the market does better than we expect, that's great, and like I say, long term, we're optimistic about this market. We think it's a very good one for GE HealthCare. It's just a question of what month does the turn take? I think we'll approach it the way we expect.
And I think just to put a bow on it, the fact is from what we communicated just at Investor Day, really no change. What are the breadcrumbs or the clues that it's heading in the right positive direction? It's some of the uptick in orders in the fourth quarter.
I was impressed with the scope of the new product launch slide. It speaks to the innovation across the entire company. Maybe just spend a minute on how you think about R&D and innovation at GE HealthCare, and especially versus your peers, how it keeps you competitive and in the position you're in.
Yeah. No, look, I think this has been over the years, it's been one of the hallmarks of GE HealthCare has been the innovation. We've had cycles where maybe it was downselected a little bit more, other areas was up. I come from the school that in our world, having the right technology is everything. And being able to make sure that that is the first dollar in and it's the last dollar protected is kind of how we think about that. But we think about it in a very methodical way on how we look at our products.
I mean, one of the things is when you think about what we're trying to do is having best-in-class products vertically, the best CT or ultrasound product, but also then how do they work across the disease state, breast cancer or coronary artery disease? You need a vehicle to think about that. We have a construct now that we really vetted out, and it's a full contact sport to be able to agree on what the right dollars are. Ultimately then it ends up in a rack and stack where we draw a line based on IRR and ENPV. We have good discussions around it, but there might be some scenarios where something's below the line, but if it were moved up, it would be the keystone to solving the kind of longitudinal piece for breast cancer.
That's something we didn't necessarily always do in the past. It's a way of looking across businesses because you see a lot of successful ones that are in this space, but they're very much verticalized. As we're trying to bring more this way, it's one of the things that we're doing. Then the other aspect is with the great work Jay and all the team have done to find ways to squeeze margin out in different areas, putting more back into R&D, measuring it on a vitality scale, making sure we're getting the returns. That's what we focus on, Robbie.
I mean, on that last point, Jay, the margin performance last year, even with the top line, you still delivered on the bottom line and margins. So maybe speak to how much more room is left to go on margins and really where you're finding the margin expansion opportunities at this point?
Great. We were very pleased with the margin performance really since the spinoff. I think as we look at our ability to execute in a dynamic revenue environment, to say the least, and still deliver from a margin expansion standpoint, it's something that we were very proud of, and then I think importantly, when Pete references in this presentation today, this idea of saying we now believe 17% to 20% plus is on the table, I think that that really says something about the quality of the plans that we have in place, and really it's going to come down to three things. Growth and innovation adds 150 to 250 basis points, and why is that?
Every time we launch a new product, it comes, and I'm not going to say every time, but virtually every time, it comes at a better price and a better cost position than the predicate. And what that means is it's just a natural uplift on margin. The second area is this idea of productivity initiatives. We have a lean culture at the company with an intense focus on improving and enhancing our operations regularly. We have a broad funnel of programs that we have in place, each of which are designed to improve margins. And so when we start the year, we have a funnel that supports the margin expansion for that year. And then as we look forward, we continue to build those kinds of funnels. So this variable cost productivity will add 200 to 300 basis points of margin. And then finally, G&A.
Coming off the TSAs, there were opportunities for us to think more simply, in our case, designed for us, the G&A infrastructure of the company, and some of that is as simple as taking our servers from own hosted to the cloud. Those kinds of opportunities drive margin improvement. We've taken advantage of some of that, but we've got a lot more to do, and we will reinvest some of that. You didn't hear me talk about R&D. We expect to continue to grow R&D in line or faster than sales. Probably not at the rates that we have the last couple of years, but still growing that important category, and then also we've got a lot of exciting launches that we're undertaking here.
And so ensuring that we sufficiently support those launches with the right sales and marketing investments, that we have the right sales and marketing investments to support some of the great collaborations like the one that we just announced, we're making those targeted investments, so that's an offset to some of the things that I said, but generally speaking, we feel quite good about what we've been able to do, but I think even more than that, looking at the future, that portfolio of initiatives to drive margin improvement is something that we feel very good about.
I definitely want to touch on some of those product launches, but maybe before we get there, we can look at the capital equipment market, and obviously, U.S. is different than OUS and OUS's hundreds of markets put together. So what are you seeing in terms of U.S. versus outside U.S. capital equipment market performance? And especially in the U.S., we see the Medicare extenders ending at the end of the year and some cuts to Medicaid. So there's fear with investors around hospital balance sheets and their willingness for capital allocation, but wondering what you're seeing and if that's translating into your business.
I mean, I would just get a quick trip around the world here. I would say the U.S. continues to be strong. I mean, there have been obviously improving balance sheets from what we've seen from the core customer base and major IDNs here within the United States. Obviously, there's risk of changing of reimbursement components.
But what we've seen is that particularly in what we do and our core imaging and a lot of our tools, in many cases, if things get tougher, being able to have faster diagnosis, more patients through on a given product that could have an ROI that is paid off in 18 months, 12 months in some cases, still means is a very good bet. But we're still seeing very strong capital appetite and appropriate investment. I'd also say about the U.S., the U.S. for imaging across all of us with the impact of COVID actually had the effect of making the installed base a little bit older. So it is one of the older installed bases in the U.S., which is a requirement to actually drive upgrades. Latin America, Southeast Asia is booming. We're seeing lots of governments want to invest to actually improve care for their folks.
Countries like Indonesia, things of that would be a good example. Then I would say China, we've already spoken to. So the dynamics there. And again, we're optimistic that we're going to be seeing the turn here at some point in 2025. But Europe was kind of a mixed year last year. There were government changes, the U.K. most notably, a high desire to actually solve some of the big issues in healthcare, but a pause for a period of time during 2024 to say, what are we going to do? And we would expect that to kind of kick back into gear here as we start 2025. Jay, miss anything?
No, I think you got it.
Are the elevated interest rates hampering adoption at hospitals around the world of capital items? And if so, what is GE HealthCare doing to help alleviate that?
Yeah. So probably around the world, we're seeing less effects, mainly because of the social programs and it being a government buy outside of the United States. So you've seen less of that. I think in the U.S., I think our team would say early on when the rates spiked, there was a little bit of a slowdown in smaller individual office products. So individual ultrasound products, things of that nature. But in general, not a significant level. But we have capital services and capabilities that we work with folks on financing options. We work on multiple areas, but it hasn't been a significant issue at this point in time.
A lot of companies talk about artificial intelligence. You actually incorporate it and monetize it. How ingrained is it in your product offering now? And how much more room is there to improve the artificial intelligence offering and also add it to further products?
Yeah. No, look, thanks, Robbie. I think, again, we benefit, and I say we, all of us that play in broader radiology and the device world, because of the nature of our products that take advantage of it. Radiologists in general tend to be more digitally savvy. So I think all of us that play in that space have kind of leaned in faster. We've had over 80 now approved FDA integrated solutions. And we've talked about that being over a couple hundred in over the next mid-year window. The difference with this is that we really now are thinking about it not just as an add-on feature, but a complete way of how you change in some cases the paradigm.
I mean, if you think about MRI right now and how we actually make an image with the raw data, AI plays and the machine learning model plays a fundamentally different role in actually changing the physics of how you make the image. And the result of that is higher quality signal noise image and a system that could be 10 years old that we can increase the productivity by 50%. And so what that then does is in a fleet discussion, someone now can afford to buy a brand new system, upgrade two old ones, have now three that are identical vintage of capability. And so you're willing to pay more for that. You're willing to put more investment back into it.
So all of our products, I would say going forward that are digital, I'm trying to think of one right now that will not have some type of embedded machine learning capabilities. What's happening beyond that is how foundation models and broader capabilities are going to play a role into it. So we also are thinking heavily about AI within the company. Software developers that aren't having AI-based tools to make them 50%, 60%, 70% more productive, you're just not going to be able to compete. So there's a lot of aspects of that that we're driving. And then the parts that I'd say I'm most excited about is in a department where we have three or four or five of the products and there are six or seven other components that generate data.
We have some really interesting things happening that we'll be talking about more this year about how you can change the positive outcome in a given department, whether it be something like labor and delivery or in cardiology in a structured heart exam. And so those are the parts of where we will monetize separately as a SaaS or a subscription capability. But clearly for the near future as well, making the products we sell more valuable and being able to get a little bit more price and a little bit more value, that's core.
I want to touch on Flyrcado in the PDX business. And maybe for those a little less familiar, you talked about it in the slides. Walk us through both the value proposition it brings to your hospital clients and patients, but also the ability for you to ramp quickly and what are the roadblocks that might get in the way of a really fast adoption ramp?
Yeah. So for Flyrcado, which is probably one of the biggest.
Thank you.
Now, that was a very international name you delivered for us. But look, I think, Robbie, I think the opportunity here is there's a couple of things happening. One is it's a product that has very differentiated capabilities. There hasn't been a perfusion product that has competed in the space for decades. And this has over a 20% improvement in its specificity, sensitivity, how the actual molecule works on looking at perfusion deficits. So that could find one that wouldn't show up in another study, reduce false positives.
So that's the clinical piece that's very exciting. The other aspect is that the reimbursement profile that's just changing here in the United States is actually taking what would have been maybe a couple hundred dollars reimbursement and loss on the product to actually reimbursement at its full value. In some cases, rest and stress together, $4,000 to $5,000. And so all of a sudden, this is actually an exam where someone can get a better outcome, better planning. They can actually make a profit on the procedure. And then the characteristics of the product versus what is currently being used are, it just has more flexibility. It's a product that you can order in.
It's a product that can be delivered in time for the exam as opposed to one that has a half-life of 11 seconds that has to be generated at the side of the scanner and injected immediately. So that changes how many sites of care that you can go to. So what's exciting about it is there's a reasonable amount of folks that have PET scanners that are doing these studies today. Just converting a majority of those to a Flyrcado can be close to $500 million of growth. If this is a product that can grow even much further, then as we said at our Investor Day, this can be north of $1 billion opportunity.
But this whole area of radiopharmaceuticals, because of the therapies that are happening in oncology, what's happening in Alzheimer's, what's happening in cardiology, and then the equipment needed to actually manage this, we play in all of that. And that's one of the things that makes GE HealthCare very different than anyone else who's playing in the space.
I don't want to put words in your mouth, but is this the product you're most excited about?
There's a lot of them I'm very excited about, but this is one of them. I think, look, I think our imaging platform, our AWS capabilities, but the product that has one of the biggest near-term impacts and honestly can do a great deal of value for patients, this is high on the list.
All right. Well, great. We're out of time. Thanks for a great discussion. Thanks, everybody, for attending.
Thank you.