- Olympus has struck a deal to acquire Korea-based gastrointestinal metallic stent manufacturer Taewoong Medical for $255.5 million upfront.
- The deal, which includes up to $114.5 million in milestone payments, will further Olympus’ ambitions to grow in the gastrointestinal market and offer a broader portfolio of products.
- Taewoong generated revenues of 6.79 billion JPY ($50 million) in 2021 through the sale of metallic stents for use in the treatment of the biliary tract, esophagus, colon and duodenum.
Late in 2021, Olympus outlined plans to focus its medical business on three therapeutic areas: gastrointestinal, urological and respiratory. Since then, the company has agreed to sell its microscopy business for $3.1 billion.
Now, Olympus has returned to the deal table, following up on its £66 million ($80 million) acquisition of artificial intelligence endoscopy startup Odin Vision with a larger deal to buy Taewoong. Gabriela Kaynor, global division head of therapeutic solutions division at Olympus, outlined the rationale for the new deal in a statement.
“Olympus’ EndoTherapy Division is committed to providing a full portfolio of clinically differentiated technologies aimed at treating patients who suffer from GI disease, and with the acquisition of Taewoong Medical, this further demonstrates our commitment to this critical segment of our business,” Kaynor said. “Taewoong Medical has developed a full portfolio of GI metal stents that will immediately enhance our already robust offering of GI devices.”
Taewoong’s stents are used to help clear blockages caused by diseases including cancer. Olympus singled out the strong radial force and high flexibility of the stents as key attributes, noting those qualities enable the devices to conform to the anatomy of patients and reduce the risk of buckling.
The acquisition continues the busy start to medtech M&A in 2023. After a quiet 2022, dealmaking has rebounded over the first two months of the new year, led by Globus’ $3.1 billion takeover of NuVasive and Abbott’s $890 million acquisition of Cardiovascular Systems.