Olympus to expand medical biz
By Kim Yoo-chul
Takeshi Tamai Olympus manager
Olympus has long been a leading camera vendor, however the Japanese company is diversifying its portfolio by expanding its non-camera operation in Korea, in particular its medical equipment business, according to an executive.
“Olympus aims to become a complete solutions provider in the medical equipment segment. We plan to grow revenue by 10 percent for fiscal year 2014, which will end in March 2015, from the previous year,” said Takeshi Tamai, division manager at Olympus’ medical business division, in an interview with The Korea Times at Olympus’ headquarters in Samseong-dong, southern Seoul, Wednesday.
Tamai stressed that this target is rather conservative given the strong demand for gastrointestinal endoscopes, endotherapy accessories and endosurgery devices in major local hospitals.
Olympus’ medical business expects profit for fiscal year 2013 to surpass 110 billion won.
Tamai said 70 percent of the total annual revenue in South Korea comes from gastrointestinal endoscopes, 20 percent from endotherapy accessories and 10 percent from other equipment.
According to Tamai, Olympus has successfully cut its heavy reliance on the volatile camera business and diversified its portfolio to include the more stable B2B medical equipment business, but it still struggles to expand in endosurgery devices.
“Olympus was late in the endosurgery business. Nevertheless, this segment has huge growth potential and is highly lucrative. We can’t afford to lose this market. By running various projects with local doctors and marketing campaigns, Olympus aims to grow its endosurgery business in Korea by more than 60 percent this year,” said the division manager.
Tamai said Olympus has so far been growing its medical equipment business by closely collaborating with local doctors and funding their research projects.
“We plan to establish a medical training center, but we need to address some issues before we launch the project,” said the official.
Patents and intellectual properties are the priorities of global technology companies, including Olympus, which is increasing the number of valuable patents with its camera technologies.
“For example, the camera imaging and auto-focus functions can be applied in medical equipment like narrow band imaging. That’s why we have no plans to drop the camera business. This is a win-win for both businesses in terms of patents.”
Tamai said Sony plans to grow its medical equipment business and is learning from Olympus’ knowledge and experience in that area.
“Sony has advanced imaging technology, while Olympus has lens, optical and medical technologies. That’s why Sony made a key strategic investment decision with us,” said the official.
He stressed that Olympus is heavily investing to become completely transparent.
“In line with that perception, we are trying to offer local doctors educational incentives rather than rebates in return for using our equipment. Olympus aims to grow the market but also wants to provide more social value.”
Tamai said Olympus doesn’t think it can directly compete with Samsung Electronics as it focuses on endoscope-related equipment, while Samsung, which also identified the medical business as one of its next cash cows, focuses on MRI/CT equipment.
“We hope to remain the trusted niche player in endoscope-related equipment. We have our own strengths just as Samsung Electronics have theirs.”