Olympus has finalized an agreement to acquire Israel-based BioProtect in a $270 million transaction. This acquisition focuses on advancing prostate cancer care through the integration of the Balloon Spacer system, a medical device that protects healthy tissue during radiation therapies.
The acquisition equips Olympus with BioProtect’s primary product, the Balloon Spacer. Designed to biodegrade naturally after treatment, this medical device creates a consistent distance between the prostate and surrounding vital structures. This spacing is essential to shield healthy tissues from exposure during prostate cancer radiation therapies. Since its commercial launch in 2023, the system has been utilized in over 11,000 procedures across the United States and Europe.
Expected to finalize by the second quarter of 2026, the prostate cancer care deal aligns with the strategic growth objectives of the Japanese medtech firm. A portion of the acquisition funds will remain in escrow for an unspecified period, contingent on the uninterrupted continuation of business activities. This move aims to broaden the company’s therapeutic offerings in gastrointestinal and urology care, adjacent to its primary endoscopy operations.
Seiji Kuramoto, executive officer and head of the surgical and interventional solutions division at Olympus, noted that the addition of BioProtect introduces a highly differentiated approach to prostate cancer care. Kuramoto emphasized that combining the clinical value proposition of BioProtect with the extensive global reach of Olympus will improve access to treatments and support healthcare professionals in achieving better patient outcomes.
The BioProtect deal follows a period of organizational changes within Olympus, particularly concerning its endoscopy operations. In an effort to simplify business processes, clarify accountability, and increase managerial spans of control within its endoscopy divisions, the company plans to reduce its workforce by approximately 2,000 employees by November 2025.
These adjustments respond in part to recent regulatory challenges involving the US Food and Drug Administration (FDA). In December 2023, Olympus faced a Class I FDA recall for its bronchoscopes following a patient death and multiple injuries associated with endobronchial burns. Furthermore, in 2024, additional safety concerns arose when specific endoscope components were linked to another patient fatality and 120 injuries, prompting enhanced oversight across its endoscopy operations.
