Medtech’s M&A Scene Stays Hot with Olympus Deal

The first two months of 2023 have been peppered with medtech deals. This is a stark contrast to 2022 – where deals were somewhat sparse – replaced with companies spinning out units that don’t quite fit.

Tokyo, Japan-based Olympus is the latest medtech firm to bring M&A back in 2023, by announcing it would acquire Taewoong, a gastrointestinal stent company for $370 million. About $255.5 million of the amount will be paid at the closing and up to $114.5 million will be paid if future milestones are achieved. The deal is expected to close by the end of June.

Taewoong develops GI stents that are used to help clear occlusions or strictures by cancer or other diseases. Moreover, Taewoong Medical's metallic stents combine strong radial force with high flexibility, which are both crucial requirements. This allows the stents to conform to the shape of anatomies such as biliary tracts and the esophagus, and even if curved, it is less likely for the stent to buckle, which reduces the risk of restenosis. Taewoong Medical has a wide range of high-quality stents realized through its unique design and technology capabilities, allowing healthcare professionals to use minimally invasive treatment with the most appropriate equipment for each patient.

Olympus is targeting GI as one of its key disease states, as outlined in its medical business strategy announced in December 2021. The addition of Taewoong Medical's medical devices to its product portfolio will enable Olympus to become a comprehensive solutions provider in the GI market with varied solutions in GI, contributing to improved patient outcomes and elevating the standard of care.

"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," said Gabriela Kaynor, Global Division Head of Therapeutic Solutions Division at Olympus. "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."

Taewoong was founded in 1992 and has 273 employees.