07.20.22
Rank: #19 (Last year: #19)
¥749.8 Billion ($6.15 Billion)
Prior Fiscal: ¥634.7 Billion
Percentage Change: +18.1%
R&D Expenditure: ¥85.3B
Best FY22 Quarter: Q4 ¥239.1B
Latest Quarter: Q4 ¥239.1B
No. of Employees: 31,557
Global Headquarters: Shinjuku City, Tokyo, Japan
KEY EXECUTIVES:
Yasuo Takeuchi, Chairman of the Board, President, and CEO
Nacho Abia, COO, Olympus Corporation; CEO, Olympus Corporation of the Americas
Chikashi Takeda, Executive Officer and CFO
Frank Drewalowski, Endoscopic Solutions Division Head
Hironobu Kawano, Endoscopic Solutions Division Head
Seiji Kuramoto, Therapeutic Solutions Division Head
Gabriela Kaynor, Therapeutic Solutions Division Head
In December 2021, several months before the close of the company’s FY22 (which spans from April 1 to March 31), Olympus’ leader—president and CEO Yasuo Takeuchi—offered clarity on the direction of his firm. The goal for Olympus going forward would be to establish a greater focus on gastrointestinal, urological, and respiratory care solutions for chronic diseases. At the same time, investment would be targeted toward investment in “next-generation technologies that will enhance patient care pathways.”
The strategy was outlined as three main principles. First, the company’s product portfolio would be focused on the disease states where maximum impact could be achieved. This centered primarily around the three aforementioned sectors. Second, investment in future innovations will focus on procedural optimization. Specifically, the CEO’s message said the plan will be to “optimize its endoscope line through complementary single-use scopes; integrate computer-assisted diagnosis, cloud, and endoscopy workflow management technologies; and explore endoluminal therapy breakthroughs.” Third, an effort will be put toward enabling Olympus to compete more effectively on a global scale. This relates directly to expanding its R&D network, as well as an active M&A strategy.
To this end, Olympus made a variety of announcements during its FY22 that illustrated these principles and the direction the company was taking moving forward.
Earlier in the year (June 2021), prior to Takeuchi’s announcement regarding the organization’s future direction, it was revealed the firm’s IT Solutions Subsidiary company (Olympus Systems Corporation) would be divested to Accenture Japan Ltd. via a transfer of 100% of the subsidiary’s shares. The move seemed to align with the direction outlined by Takeuchi as IT infrastructure, while a component of the medical solutions the company offers, was not specifically associated with medtech directly. In the news release regarding the deal, it was stated, “…Olympus has completed a comprehensive strategic review, concluding that Olympus Systems Corporation would benefit from optimizing its expertise and obtaining further skills and opportunities under Accenture…”
Then, just days after the close of its 2022 fiscal year, Olympus completed the split of its Scientific Solutions business, home to the Industrial and Life Sciences units. The segment became a wholly-owned subsidiary and was renamed Evident Corporation. The move, which had been announced in June 2021, further reflects the company’s desire to become solely focused on being a major supplier of medical technology solutions.
“Evident, while continuing to provide best-in-class products, will expand its digital and cloud-based solutions to enhance the customer experience and to improve the overall workflow in the research and inspection fields. We will shift from a business model centered on the sale of products, to one focused on solving customer issues and challenges,” explained Yoshitake Saito, president and representative director of Evident. “With this greater management autonomy, we will promote agile product development and open innovation, which we believe will increase the speed of product development.”
Also during the fiscal period, the company continued its expansion strategy through acquisition. In May, it finalized a deal that brought Medi-Tate Ltd. into the fold. The Israeli firm was the manufacturer of iTind, a device that offered the ability for physicians to perform in-office treatment of benign prostatic hyperplasia. It had already earned U.S. FDA de novo authorization as well as a CE mark, and had been distributed by Olympus since November 2018 as a result of the organization’s initial investment.
Perhaps recognizing the need for funding of innovative medical device projects or seeing the value in doing so from its Medi-Tate deal, Olympus established an investment-focused subsidiary—Olympus Innovation Ventures—in November 2021. With the goal of backing innovative technologies that improve clinical outcomes, reduce healthcare costs, and enhance the quality of life of patients, the venture capital fund was further evidence of the company’s laser focus on medtech.
According to Olympus, the stage-agnostic fund would prioritize early- and growth-stage companies around the world. It would also give special attention to technologies that offered solutions in the areas of gastroenterology, respiratory, and urology. The firm had allocated $50 million for “initial commitments and follow-on investments in portfolio companies.” In addition to a financial investment, Olympus stated it would lend its clinical and technical expertise to portfolio companies, as well as help enable access to healthcare professionals and assist in market launch. The Olympus Innovation Ventures fund was said to be managed by Touchdown Ventures.
All of these changes will certainly help to build on a company that already saw great gains during its 2022 fiscal. Its 18.9% company-wide rise over the prior period represented a ¥868.9 billion revenue haul for the firm. Looking into the financial details reveals this growth was driven by substantial gains across every business segment.
In its largest unit (by revenue), Endoscopic Solutions ballooned 17.2% to tally ¥461.5 billion. Gains were a direct result of the recovery from decreased demand during the pandemic for gastrointestinal endoscopes. The same was true of the organization’s surgical endoscopes—the VISERA ELITE II in particular.
Within the Therapeutic Solutions business, the year-over-year rise mirrored that of the entire firm—18.9%. This materialized into a ¥275.6 billion contribution to the company’s coffers. All sub-segments within the unit experienced positive gains as a result of a recovery in procedures, which had diminished during the COVID-19 pandemic.
Within the one non-medtech unit (and now established subsidiary firm), Scientific Solutions enjoyed a 24.2% upsurge to finish the fiscal at ¥119.1 billion. Driven primarily by a progressive recovery from pandemic conditions at research and academia facilities, as well as a continued return of capital investment dollars, the unit established a sound foundation upon which to launch onto its own.
Olympus’ “Others” division conducts R&D and exploratory activities for new businesses, in addition to engaging in R&D, manufacturing, and sales of biomedical materials (such as synthetic bone filler) and orthopedic equipment. Its tally for FY22 was ¥12.6 billion, a fantastic 37.6% increase over FY21. The majority of this gain was generated from FH ORTHO SAS, which became a new subsidiary in November 2020.
Going forward, these units will be run within the U.S. from a new headquarters for the medical business within the country. The Westborough, Mass., location was also named the global headquarters for the firm’s Therapeutic Solutions Division (TSD). The 150,000-square-foot facility will accommodate both the TSD employees as well as those formerly at the Image Stream Medical facility in Littleton, Mass. It will also be used as an R&D hub for Olympus, as well as a Continuum Training and Education Center. The center will enable hands-on learning of the company’s equipment and facilitate virtual capabilities for remote sessions.
“The U.S. market continues to be the largest in the world because of growing demand for minimally invasive treatment and surgery and the need for remote collaboration under COVID-19, so it’s natural that we decided to combine all functions in Massachusetts in one place to facilitate agility and collaboration. This agile and globally-connected way of business will enhance our overall business competitiveness,” explained Nacho Abia, COO.
Speaking of product innovations, the company also provided insight on a number of projects that made headlines during the fiscal period. In September 2021, Olympus launched the first technology from its POWERSEAL family of advanced bipolar surgical energy products. The 5mm Curved Jaw Tissue Sealer and Divider, Double-Action devices provide consistent sealing reliability in an ergonomic, multifunctional design that promotes procedural efficiency. The debut marks a line that augments an extensive and differentiated surgical energy portfolio, which features the THUNDERBEAT hybrid energy devices and SONICBEAT ultrasonic dissectors. According to Olympus, the global market for advanced bipolar surgical energy devices was estimated at more than $1.2 billion at the time of the launch.
A month later at the Japan Society of Digital Pathology Study annual meeting, the results of an ongoing joint research program to create an AI-based pathology diagnostic tool with the potential to streamline pathologists’ workloads were announced. The diagnostic tool achieved 100% sensitivity and 50% or more specificity for all gastric biopsy pathology specimens analyzed. Beginning in 2017, the collaboration was between Olympus, the Kure Medical Center, and the Chugoku Cancer Center. The goal of the program is to deliver AI pathology diagnosis software that can assist pathologists by 2023.
¥749.8 Billion ($6.15 Billion)
Prior Fiscal: ¥634.7 Billion
Percentage Change: +18.1%
R&D Expenditure: ¥85.3B
Best FY22 Quarter: Q4 ¥239.1B
Latest Quarter: Q4 ¥239.1B
No. of Employees: 31,557
Global Headquarters: Shinjuku City, Tokyo, Japan
KEY EXECUTIVES:
Yasuo Takeuchi, Chairman of the Board, President, and CEO
Nacho Abia, COO, Olympus Corporation; CEO, Olympus Corporation of the Americas
Chikashi Takeda, Executive Officer and CFO
Frank Drewalowski, Endoscopic Solutions Division Head
Hironobu Kawano, Endoscopic Solutions Division Head
Seiji Kuramoto, Therapeutic Solutions Division Head
Gabriela Kaynor, Therapeutic Solutions Division Head
In December 2021, several months before the close of the company’s FY22 (which spans from April 1 to March 31), Olympus’ leader—president and CEO Yasuo Takeuchi—offered clarity on the direction of his firm. The goal for Olympus going forward would be to establish a greater focus on gastrointestinal, urological, and respiratory care solutions for chronic diseases. At the same time, investment would be targeted toward investment in “next-generation technologies that will enhance patient care pathways.”
The strategy was outlined as three main principles. First, the company’s product portfolio would be focused on the disease states where maximum impact could be achieved. This centered primarily around the three aforementioned sectors. Second, investment in future innovations will focus on procedural optimization. Specifically, the CEO’s message said the plan will be to “optimize its endoscope line through complementary single-use scopes; integrate computer-assisted diagnosis, cloud, and endoscopy workflow management technologies; and explore endoluminal therapy breakthroughs.” Third, an effort will be put toward enabling Olympus to compete more effectively on a global scale. This relates directly to expanding its R&D network, as well as an active M&A strategy.
To this end, Olympus made a variety of announcements during its FY22 that illustrated these principles and the direction the company was taking moving forward.
Earlier in the year (June 2021), prior to Takeuchi’s announcement regarding the organization’s future direction, it was revealed the firm’s IT Solutions Subsidiary company (Olympus Systems Corporation) would be divested to Accenture Japan Ltd. via a transfer of 100% of the subsidiary’s shares. The move seemed to align with the direction outlined by Takeuchi as IT infrastructure, while a component of the medical solutions the company offers, was not specifically associated with medtech directly. In the news release regarding the deal, it was stated, “…Olympus has completed a comprehensive strategic review, concluding that Olympus Systems Corporation would benefit from optimizing its expertise and obtaining further skills and opportunities under Accenture…”
Then, just days after the close of its 2022 fiscal year, Olympus completed the split of its Scientific Solutions business, home to the Industrial and Life Sciences units. The segment became a wholly-owned subsidiary and was renamed Evident Corporation. The move, which had been announced in June 2021, further reflects the company’s desire to become solely focused on being a major supplier of medical technology solutions.
“Evident, while continuing to provide best-in-class products, will expand its digital and cloud-based solutions to enhance the customer experience and to improve the overall workflow in the research and inspection fields. We will shift from a business model centered on the sale of products, to one focused on solving customer issues and challenges,” explained Yoshitake Saito, president and representative director of Evident. “With this greater management autonomy, we will promote agile product development and open innovation, which we believe will increase the speed of product development.”
Also during the fiscal period, the company continued its expansion strategy through acquisition. In May, it finalized a deal that brought Medi-Tate Ltd. into the fold. The Israeli firm was the manufacturer of iTind, a device that offered the ability for physicians to perform in-office treatment of benign prostatic hyperplasia. It had already earned U.S. FDA de novo authorization as well as a CE mark, and had been distributed by Olympus since November 2018 as a result of the organization’s initial investment.
Perhaps recognizing the need for funding of innovative medical device projects or seeing the value in doing so from its Medi-Tate deal, Olympus established an investment-focused subsidiary—Olympus Innovation Ventures—in November 2021. With the goal of backing innovative technologies that improve clinical outcomes, reduce healthcare costs, and enhance the quality of life of patients, the venture capital fund was further evidence of the company’s laser focus on medtech.
According to Olympus, the stage-agnostic fund would prioritize early- and growth-stage companies around the world. It would also give special attention to technologies that offered solutions in the areas of gastroenterology, respiratory, and urology. The firm had allocated $50 million for “initial commitments and follow-on investments in portfolio companies.” In addition to a financial investment, Olympus stated it would lend its clinical and technical expertise to portfolio companies, as well as help enable access to healthcare professionals and assist in market launch. The Olympus Innovation Ventures fund was said to be managed by Touchdown Ventures.
All of these changes will certainly help to build on a company that already saw great gains during its 2022 fiscal. Its 18.9% company-wide rise over the prior period represented a ¥868.9 billion revenue haul for the firm. Looking into the financial details reveals this growth was driven by substantial gains across every business segment.
In its largest unit (by revenue), Endoscopic Solutions ballooned 17.2% to tally ¥461.5 billion. Gains were a direct result of the recovery from decreased demand during the pandemic for gastrointestinal endoscopes. The same was true of the organization’s surgical endoscopes—the VISERA ELITE II in particular.
Within the Therapeutic Solutions business, the year-over-year rise mirrored that of the entire firm—18.9%. This materialized into a ¥275.6 billion contribution to the company’s coffers. All sub-segments within the unit experienced positive gains as a result of a recovery in procedures, which had diminished during the COVID-19 pandemic.
Within the one non-medtech unit (and now established subsidiary firm), Scientific Solutions enjoyed a 24.2% upsurge to finish the fiscal at ¥119.1 billion. Driven primarily by a progressive recovery from pandemic conditions at research and academia facilities, as well as a continued return of capital investment dollars, the unit established a sound foundation upon which to launch onto its own.
Olympus’ “Others” division conducts R&D and exploratory activities for new businesses, in addition to engaging in R&D, manufacturing, and sales of biomedical materials (such as synthetic bone filler) and orthopedic equipment. Its tally for FY22 was ¥12.6 billion, a fantastic 37.6% increase over FY21. The majority of this gain was generated from FH ORTHO SAS, which became a new subsidiary in November 2020.
Going forward, these units will be run within the U.S. from a new headquarters for the medical business within the country. The Westborough, Mass., location was also named the global headquarters for the firm’s Therapeutic Solutions Division (TSD). The 150,000-square-foot facility will accommodate both the TSD employees as well as those formerly at the Image Stream Medical facility in Littleton, Mass. It will also be used as an R&D hub for Olympus, as well as a Continuum Training and Education Center. The center will enable hands-on learning of the company’s equipment and facilitate virtual capabilities for remote sessions.
“The U.S. market continues to be the largest in the world because of growing demand for minimally invasive treatment and surgery and the need for remote collaboration under COVID-19, so it’s natural that we decided to combine all functions in Massachusetts in one place to facilitate agility and collaboration. This agile and globally-connected way of business will enhance our overall business competitiveness,” explained Nacho Abia, COO.
Speaking of product innovations, the company also provided insight on a number of projects that made headlines during the fiscal period. In September 2021, Olympus launched the first technology from its POWERSEAL family of advanced bipolar surgical energy products. The 5mm Curved Jaw Tissue Sealer and Divider, Double-Action devices provide consistent sealing reliability in an ergonomic, multifunctional design that promotes procedural efficiency. The debut marks a line that augments an extensive and differentiated surgical energy portfolio, which features the THUNDERBEAT hybrid energy devices and SONICBEAT ultrasonic dissectors. According to Olympus, the global market for advanced bipolar surgical energy devices was estimated at more than $1.2 billion at the time of the launch.
A month later at the Japan Society of Digital Pathology Study annual meeting, the results of an ongoing joint research program to create an AI-based pathology diagnostic tool with the potential to streamline pathologists’ workloads were announced. The diagnostic tool achieved 100% sensitivity and 50% or more specificity for all gastric biopsy pathology specimens analyzed. Beginning in 2017, the collaboration was between Olympus, the Kure Medical Center, and the Chugoku Cancer Center. The goal of the program is to deliver AI pathology diagnosis software that can assist pathologists by 2023.