Olympus has teamed up with Revival Healthcare Capital to launch a joint venture aimed at bringing robotics to gastrointestinal procedures.
Swan EndoSurgical plans to develop a minimally invasive, endoluminal platform that will enter and navigate the GI tract similar to an endoscope—but would be capable of deploying flexible robotic arms to help treat lesions or tumors, as well as other diseases. The startup will be based in Boston, with a technology center located in Cambridge, U.K.
Olympus will take “a significant equity stake,” according to the company, and supply its core visualization and GI endoscopy tech to the effort, while Revival will hold majority control. Together, they put forward a combined initial investment of $65 million; however, that backing could balloon up to $458 million if Swan meets a series of development milestones.
“We are excited to enter this collaboration that we expect to play a pivotal role in reshaping the GI market by expanding procedural capabilities for physicians,” said Olympus CEO Bob White, who was named chief of the Tokyo-based company in early June. “This will allow the delivery of transformative, organ-sparing care that enhances outcomes for a broad patient population.”
The project also offers Olympus a chance to acquire Swan at a predetermined value if the startup succeeds, while Revival maintains ownership rights if Olympus chooses not to exercise its option.
“We believe Olympus’ strategic decision to leverage external innovation in partnership with Revival can create a competitive advantage for Swan and Olympus as the ultimate owner in the future,” Revival Chairman Rick Anderson said in a statement. “Together, we are committed to advancing the field of endoluminal robotics, which we believe ultimately benefits patients and providers worldwide.”