Nikon May Enter Medical Device Market

Japanese company Nikon corp. is contemplating a move into medical devices. The company, which primarily focuses on cameras but also makes microscopes and precision equipment such as scanners, is looking at ways to fill the gap a general downward trend in compact camera sales is leaving in its revenue.

Company President Makoto Kimura said that he hopes to see a medical device unit generating revenue within three years. If Nikon succeeds in establishing a medical device brand, it would be following the lead of Canon Inc. and Sony Corp., both of which have announced collaborations with hospitals and medical equipment makers as they seek growth. Olympus Corp., another camera maker, is currently the world’s largest maker of endoscopes, according to Bloomberg.

Canon, also known for its cameras, recently launched a research and development operation in Massachusetts focused on developing cutting-edge medical device imaging tools. Earlier this year, Japanese conglomerate Sony agreed to invest $645 million in Olympus to form a joint partnership focused on endoscopes and other medical devices. Both companies see their partnership as a way to generate new revenue sources in the wake of disappointing consumer product sales.

It is unclear whether Nikon is looking for an acquisition to expand into the medical device space or not. Kimura said he has not ruled out this options, but there are no specific talks underway.

Nikon also is planning to expand into the smartphone and new, previously unseen camera technologies.