Olympus 2008 Annual Report Download - page 12

SPECIAL FEATURE
Toward Medical Systems Business Growth:
Surgical Business Enhanced
by Acquisition of Gyrus
reinforcing and expanding our businesses in the surgical
and minimally invasive procedure fields. The acquisi-
tion of Gyrus formed part of this basic strategy in the
Medical Systems Business.
Minimally invasive procedure is a method for treat-
ing affected areas by means of endoscopes without
opening the abdominal cavity. In recent years, it has
been expected that minimally invasive procedure would
thereby contribute to easing the physical stress placed
on patients, shorten the lengths of hospital stays and
improve the efficiency of medical care services. Today,
endoscopic surgery is performed for various diseases in
the wider clinical area, encompassing general surgery,
gynecology and urology. In global terms, Olympus cur-
rently boasts a 70% share of the gastroenterological
endoscopes market. However, we must endeavor to
develop the surgical business to contribute more to
minimally invasive procedure and to nurture our Medical
Systems Business.
After repeatedly reviewing our strategy, we came to
the conclusion that Gyrus would be an ideal partner in
reinforcing Olympus’ surgical business. This was based
on the synergies expected for both Olympus and Gyrus
in terms of products and regional strategies in the surgi-
cal field.
3.
Specifically, what kinds of synergies can be
expected on the products strategy front?
> We can expect synergy from the integration of techno-
logical skills. Endoscopic surgery requires high diagnos-
tic and therapeutic capabilities. In order to meet these
needs, primarily for rigid endoscopes Olympus can offer
its popular, high-quality imaging devices that utilize
high-definition video technology. On the other hand,
Gyrus excels thanks to its proprietary energy-related
processing devices. For example, Gyrus disposable
electrosurgical knives are the most appropriate product
for laparoscopic surgery, a typical minimally invasive
treatment using energy technologies, which are indis-
pensable in this field. Therefore, Olympus succeeded in
gaining access to both imaging and energy technologies
through its acquisition of Gyrus. By integrating both
companies’ strengths, we believe that we will be able to
provide higher diagnostic and therapeutic capabilities to
medical institutions and patients.
4.
What changes will be made to the sales structure
after the business integration?
> On the regional strategy front, we can expect syner-
gies in product lineups and marketing capabilities.
Particularly in the urological and gynecological fields
Gyrus enjoys outstanding brand power in North America,
which accounts for approximately 80% of its sales. The
acquisition will boost our marketing capabilities in the
surgical field, add Gyrus’ long-established relationships
with doctors and hospitals to our assets, and reinforce
the basis of our surgical business in North America.
After the acquisition, Olympus will make effective use
of Gyrus’ skillful sales personnel to commence a new
marketing system in the surgical field. In specific terms,
we have succeeded in quadrupling the number of sales
representatives in North America.
10 OLYMPUS 2008