Olympus Medical Device Company Intelligence Report
- ID: 2396981
- January 2013
- 39 Pages
- Espicom Business Intelligence Ltd
Medical Device Company Intelligence Reports provide a full review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis. An introduction to each report and a full table of contents is provided for review. More than 60 Medical Device Company Intelligence Reports are currently available.
Olympus Corporation, headquartered in Tokyo, Japan, develops and manufactures products based on optical and electronic technology for the consumer, scientific, healthcare and industrial markets. The company operates within five divisions; Medical, Imaging, Life Science & Industrial, Information & Communication and Other.
The main focus of this profile is Olympus Medical, the Olympus group’s largest operating division, accounting for almost 41% of the company’s total turnover in the financial year ended 31st March 2012. The division is a leading manufacturer of gastrointestinal endoscopes, surgical endoscopes, endotherapy devices, endoscopic ultrasound systems and related products.
Olympus Medical sells its products throughout the world and has manufacturing facilities in Japan, the US, Germany, the UK, the Czech Republic and Vietnam. In fiscal year 2012, the division generated net sales of ¥349.2 billion.
In October 2011, Olympus was embroiled in a global scandal, when it emerged that the company had participated in fraudulent long-term loss-hiding activities. The activities were uncovered by the company’s then new CEO, Michael Woodford, who raised questions over suspect acquisitions Olympus had made outside of its core business, as well as disproportionately high M&A fees associated with them. Of particular suspicion was the February 2008 acquisition of Gyrus ACMI, which carried a US$687 million middle-man fee, a sum equal to 31% of the purchase price.
On 14th October 2011, Woodfood was sacked as Olympus’ CEO by the company’s Board of Directors, allegedly over Woodford’s insistence that the Olympus officials come clean about the series of questionable acquisitions totalling US$1.6 billion. The deals had been approved by Woodford’s predecessor, Tsuyoshi Kikukawa Kikukawa, as well as the Olympus Board, but in several cases, the parties receiving the sums were not identified in Olympus’ financial statements. Woodford was replaced by Kikukawa, but on 26th October 2011, Kikukawa resigned, to be replaced by new President, Hiroyuki Sasa. On 8th November 2011, Olympus was forced to admit that its accounting practices had been used to conceal losses, dating back to the 1990s. Kikukawa was blamed, along with the company’s auditor and an Executive Vice President. SHOW LESS READ MORE >