by John R. Fischer
, Senior Reporter | February 28, 2023
Olympus Corporation is set to acquire Taewoong Medical and its gastrointestinal metallic stent business for approximately $370 million in cash, expanding the its GI endotherapy product portfolio.
At the closing, Taewong will receive $255.5 million, and be paid up to $114.5 million upon hitting future milestones.
Increased incidences of biliary cancers have boosted demand for metallic stents, a minimally invasive treatment often used to treat jaundice, one of the symptoms of obstructed or narrowed biliary tracts caused by this cancer.
As part of its medical business strategy announced in December 2021, Olympus is seeking to increase its stake in the gastrointestinal market, seeing it as a key disease state. It expects overall GI metallic stents to grow by about 6% to 7% in the global market by 2033.
"The purpose of this acquisition is to fill the portfolio gap and allow us to be a broad provider of GI devices to improve patient care," an Olympus spokesperson told HCB News. "We believe that we can expect further growth by adding GI metallic stents to our portfolio."
Along with the biliary tract, Taewoong Medical develops stents for the esophagus, colon and duodenum treatments. Its solutions use strong radial force and high flexibility to conform to the shape of anatomies. Even if curved, it is less likely for the stent to buckle, reducing the risk of restenosis, a gradual re-narrowing of the stented segment following stent placement.
Founded in 1992 in South Korea, Taewoong Medical has built up a sizable customer base there, as well as Japan and Europe. It currently exports to 86 countries worldwide, employs 273 individuals and has made a revenue profit of $6,790 million, as of December 2021.
The Taewoong Medical brand will continue for the time being, as will the company as a legal entity. Employees will continue in their current positions there.
The deal is expected to be completed by the end of June 2023.