Olympus to Acquire Korean GI Stent Maker Taewoong Medical

Olympus Corp. has entered an agreement to acquire Taewoong Medical Co., a Korean manufacturer of gastrointestinal (GI) metallic stents, to bolster its GI endotherapy product solutions.
 
The deal for Taewoong is valued at about $370 million—$255.5 million will be paid at closing and up to $114.5 million will be paid upon achievement of future milestones. Olympus expects the transaction to close on June 30.
 
Metallic stents are often used to treat jaundice, a symptom of an obstructed or narrowed biliary tract caused by biliary cancer.
 
Taewoong’s portfolio of GI stents includes metallic stents for biliary tract, esophagus, colon, and duodenum treatments. The stents are used to help clear occlusions or strictures by cancer or other diseases. The company’s stents combine strong radial force with high flexibility, allowing them to conform to the shape of the biliary tracts or esophagus. That way, even if curved the stents are less likely to buckle and cause restenosis.
 
Olympus is targeting GI as a key disease state, as outlined in its medical business strategy in December 2021.
 
“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,” Gabriela Kaynor, Global Division Head of Therapeutic Solutions Division at Olympus, told the press. “Taewoong Medical has developed a full portfolio of GI metal stents that will immediately enhance our already robust offering of GI devices. I’m proud to welcome Taewoong Medical’s employees, and their commitment to the field of GI endoscopy to the Olympus’ Therapeutic Solutions Division.”
 
Kyong-min Shin, President and CEO of Taewoong Medical stated, “For over three decades, Taewoong Medical has been a leading manufacturer of GI stents, renowned for its innovative technology and diverse product range. Our company has a robust market presence in Korea, Japan, and Europe, and exports to 86 countries worldwide. Moving forward together with Olympus, Taewoong Medical will focus its capabilities to provide medical professionals and patients with superior products and services through continuous investment in R&D and manufacturing technology.”