Olympus Medical Systems has agreed to buy Spiration, a medical device company based in Redmond, Wash. Financial terms were not disclosed. Spiration has received more than $94 million in funding from investors including Olympus, New Enterprise Associates, New Leaf Venture Partners (Sprout Group), InterWest Partners, Investor Growth Capital and Three Arch Partners. Olympus Medical is owned by Olympus Corp.
Olympus Corporation (President: Tsuyoshi Kikukawa) (“Olympus”) is pleased to announce that an agreement was reached with Spiration, Inc. (Head Office: Redmond, Washington, U.S.A; President and CEO: Rick Shea) (“Spiration”) in which all shares of Spiration® will be acquired by Olympus Corporation of the Americas, a North American subsidiary of Olympus. As a result, Spiration will become a consolidated subsidiary of Olympus. Olympus Medical Systems Corp. (President : Haruhito Morishima) (“Olympus Medical”) had previously obtained exclusive rights to market and distribute Spiration’s product in Japan and Europe.
Within the Olympus consolidated group of entities (the “Olympus Group”), Olympus Medical’s business focuses on providing healthcare professionals with solutions for endoscopic observation, diagnosis and treatment. Olympus Medical is a leader in the Respiratory market with the #1 market share, globally, in both Endobronchial Ultrasound (EBUS) and Flexible Bronchoscopy. In its effort to expand endoscopic applications in the Respiratory market, Olympus is expanding efforts to address Respiratory conditions not related to lung cancer.
As part of its business development, in 2008, Olympus Medical signed an exclusive distributorship agreement with Spiration, a company specialized in the development of minimally invasive devices for the treatment of acute and chronic conditions of the lungs. The agreement granted Olympus Medical exclusive rights to market and distribute, through the Olympus Group’s distribution channels in Europe and Japan, Spiration’s IBV Valve System, a device for the bronchoscopic treatment of emphysema and air leaks of the lung. European distribution of the product began in 2008.
For the IBV Valve System, preparation for clinical trials for use as a treatment for emphysema and air leaks is underway in Japan. In the United States, the IBV Valve System is a Humanitarian Use Device approved by the FDA for control of prolonged air leaks following certain lung surgeries. The IBV Valve System is also the subject of a pivotal clinical trial to evaluate its use in treating severe emphysema.
As mapped out in its Five-Year Medium-term Corporate Strategic Plan in force from April 2010 until March 2015, Olympus Medical intends that Spiration’s full participation in the Olympus Group as a consolidated subsidiary will help accelerate its business related to the IBV Valve System. Spiration brings expertise and insights in treatment devices for lung conditions, which will inspire Olympus Medical’s further development of new techniques and products for the Respiratory market. Olympus Medical is committed to the delivery of minimally invasive treatment alternatives to pulmonologists and thoracic surgeons as well as improved quality of life to patients with the aim of contributing to improved patient health.
“I am pleased that our partnership with Spiration has led to this agreement which makes Spiration a part of the Olympus Group,” said Haruhito Morishima, President of Olympus Medical. “Spiration possesses a high level of technological capability and deep insights into the respiratory field. Their products are also an ideal complement to the Olympus portfolio of bronchoscopes and equipment. We will take advantage of the synergies of the two companies in our development of next-generation endoscopic respiratory products that better help physicians diagnose, treat and observe conditions of the airways and lungs.“
“Spiration is committed to helping physicians improve the quality of life for patients with acute and chronic conditions of the lung. Today, we are fortunate to be able to strengthen this commitment by building upon the foundation of our previous productive relationship with Olympus Medical to become a part of the global group of entities organized under the Olympus Corporation.” said Rick Shea, President and CEO of
Spiration. “Together, we will seek to develop and introduce innovative treatment options that make a positive difference for pulmonary patients around the world.”