Olympus Corporation is taking its medical business in a whole new direction, choosing to focus more on disease states, especially chronic diseases that require gastrointestinal, urological and respiratory care solutions.

The company plans to invest more in next-generation technologies for enhancing patient care pathways. This includes improving its endoscopy line and introducing better workflow management technologies. It also plans to maintain market leadership in GI and outpace market growth in GI-Endotherapy, urology and respiratory care.

As part of this change, Olympus will transition from a product-first company to one that is focused on being relevant all along the patient care pathway to enhance the standard of care.

"Olympus is a clear leader in the areas of gastroenterology, urology, and respiratory. This is where we are having greatest impact today, but it is also where we have new growth opportunities. These are the areas where we will focus our investments and resources to achieve profitable and sustainable growth, and make the biggest difference in the care path journey," Gabriela Kaynor, division head of therapeutics solutions at Olympus Corporation of the Americas, told HCB News.

Earlier this year, Olympus completed the sale of its camera imaging business to Japan Industrial Partners due to operating losses from a shrinking market and a desire to make its business structure more compact, efficient and agile. It also has announced the impending transition of its Scientific Solutions business into a newly established, wholly owned subsidiary and made operational changes to enhance efficiency, profitability, R&D processes and customer care.

While other medical areas will remain important, Olympus’ main focus will be on developing solutions for disease states, particularly those targeted by its gastrointestinal, urology and respiratory business areas. Doing so will allow it to help providers manage and care for the increased levels of chronic disease, a consequence of the aging population worldwide. This includes colorectal cancer, benign prostatic hyperplasia, urological stone disease, urinary disease and lung cancer.

The company hopes that such efforts, along with its work in other medical fields, will help it grow its profit by 5%-6% annually and reach an operating margin of 20% or higher.

It also hopes to optimize its endoscope line with the use of complementary single-use endoscopes, integrate computer-assisted diagnosis, cloud and endoscopy workflow management technologies, and explore breakthroughs in endoluminal therapy.

The aim behind these decisions is to create more efficient care pathways and raise standards of care, as well as make Olympus more of a competitor on a global scale. To help in this endeavor, the company is expanding its global R&D network, strengthening medical and scientific affairs and creating a more centralized Quality Assurance and Regulatory Affairs function. Also helping is its merger and acquisition activity, which includes its recent acquisitions of urological device maker, Medi-Tate, for $260 million; Quest Photonic Devices for $60 million; and Veran Medical Technologies for $340 million. Medi-tate’s flagship product, iTind, expands Olympus’ stake in in-office treatments of benign prostatic hyperplasia. Quest’s proprietary fluorescent imaging systems broaden the procedures that its endoscopic surgical imaging line can be used in, and Veran Medical Technologies, a developer of interventional pulmonology solutions, makes it a leading player in the respiratory device market.

In addition, the company recently launched Olympus Innovation Ventures, its wholly owned corporate venture capital fund which will invest in startups that are developing innovative technologies to improve clinical outcomes, reduce healthcare costs and enhance quality of life for patients. It will prioritize early-stage investments for next-generation innovations, as part of Olympus’ new direction for its medical division.

"We will focus of course on gastroenterologists, urologists and pulmonologists, but also infection preventionists, nurses and healthcare administrators who are key decision-makers," said Kaynor. "We will also continue to expand our leading educational programs and training exercises to help healthcare professionals increase their technical expertise, achieve excellent clinical results, and ensure patient safety."

Olympus announced in November that it has produced strong half-year figures, including a record operating profit margin of 18.5% and strong year-on-year growth of 31%. It expects its medical business revenue to reach a record high for the fiscal year 2022.