Japanese medical technology company Olympus has agreed to acquire Taewoong Medical, a South Korea-based manufacturer of medical devices such as gastrointestinal (GI) stents, for around $370m.

The total consideration includes an upfront payment of $255.5m, paid at the closing, and up to $114.5m in milestone payments, paid contingent on achieving future milestones.

The transaction is expected to be completed on 30 June 2023, subject to certain customary closing conditions.

Olympus is targeting GI as one of its key disease states, as per the company’s medical business strategy announced in December 2021.

Through the acquisition, Olympus aims to strengthen its GI EndoTherapy product portfolio and contribute to improving patient outcomes through comprehensive solutions.

Olympus therapeutic solutions division global division head Gabriela Kaynor said: “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.

“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 Medical is engaged in manufacturing different types of medical devices, including metallic GI stents, which are used to clear the occlusions created by cancer or other diseases.

The company’s metallic stents are designed to combine a strong radial force with high flexibility, both of which are crucial requirements.

They conform with the shape of the patient’s anatomies such as biliary tracts and the oesophagus, preventing the stent from buckling and reducing the risk of restenosis.

Taewoong Medical has a broad portfolio of high-quality stents for minimally invasive treatment, building on its unique design and technology capabilities.

Taewoong Medical president and CEO Kyong-min Shin said: “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.”