SOUTH KOREA —Olympus, a leading manufacturer of medical devices, has announced its agreement to acquire Taewoong Medical, a Korea-based company specializing in the production of medical devices, specifically gastrointestinal (GI) metallic stents.
The acquisition is intended to strengthen Olympus’ GI endotherapy product portfolio and further its goal of providing comprehensive solutions that contribute to improved patient outcomes.
Under the agreement, Taewoong Medical will receive approximately US$370 million in cash, with US$255.5 million paid at closing and up to US$114.5 million paid upon the achievement of future milestones.
The transaction is expected to be completed on June 30, 2023, subject to customary closing conditions.
The incidence of biliary cancers, where metallic stents are frequently used as one of the treatments, has been increasing in recent years due to the aging population.
Metallic stents are often used to treat jaundice, a common symptom of an obstructed or narrowed biliary tract caused by biliary cancer.
The use of stents allows for minimally invasive treatment, supporting faster patient recovery. However, different types of stents are needed depending on the condition of the lesion and the patient’s anatomy.
Taewoong Medical, as a manufacturer of GI stents, offers a variety of medical devices including metallic stents designed for biliary tract, esophagus, colon, and duodenum treatments.
The acquisition of Taewoong Medical by Olympus will allow the company to expand its portfolio of endotherapy devices and provide better options to patients who suffer from these conditions.
Gastrointestinal (GI) stents are an essential tool used to treat strictures and occlusions caused by cancer or other diseases.
Taewoong Medical’s metallic stents are unique in that they combine strong radial force with high flexibility, making them ideal for conforming to anatomical shapes such as biliary tracts and the esophagus.
The stents also possess the advantage of being less likely to buckle, reducing the risk of restenosis even in curved areas.
As a result, Taewoong Medical offers a wide range of high-quality stents that allow healthcare professionals to use minimally invasive treatments with the most appropriate equipment for each patient.
Olympus, as part of its medical business strategy announced in December 2021, is targeting GI as one of its key disease states.
The acquisition of Taewoong Medical’s medical devices will enable Olympus to expand its product portfolio, making it a comprehensive solutions provider in the GI market with varied solutions in GI.
With a range of options, healthcare professionals will be able to choose the most suitable equipment for their patients, ultimately leading to better outcomes.
This acquisition will further elevate the standard of care, benefiting patients and healthcare professionals alike.
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