Olympus Corporation, a global medtech company headquartered in Japan, has agreed to acquire Taewoong Medical Co., a Korea-based manufacturer of medical devices such as gastrointestinal (GI) metallic stents to strengthen its GI endotheraphy product portfolio capabilities, and in turn, contributing to improving patient outcome through comprehensive solutions.

Taewoong will receive approximately $370 million in cash, of which $255.5 million will be paid at the closing and up to $114.5 million will be paid if future milestones is achieved. The company expects to complete the transaction on June 30, 2023, subject to customary closing conditions.

Incidences of biliary cancers, where metallic stents are frequently used as one of the treatments, have been increasing in recent years due to the ageing population. Metallic stents are often used to treat jaundice, one of the symptoms of an obstructed or narrowed biliary tract caused by biliary cancer. The stent allows for minimally invasive treatment, which supports faster patient recovery.

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.