Olympus: A Financial 'House Of Cards' With 20% Downside
January 27, 2016
Olympus (OTCPK:OCPNY) (OTC:OCPNF) is an advanced medical equipment and technology company and the world's largest manufacturer of gastrointestinal endoscopes, with over 70% global market share in the field. Following a high-profile accounting scandal, which ended with the arrest of three of its former executives, the company's duodenoscopes, utilised for a non-routine procedure known as endoscopic retrograde cholangiopancreatography, or "ECRP", became a main driver of profit for the company, with more than 500,000 of the procedures performed every year in the U.S. However, all is still not well with this now creditor-run medical giant, as just in the past few weeks, it has come to surface that ex-CEO Michael Woodford has re-opened his case against Olympus for alleged "breach of contract" and U.S. Congressman Ted Lieu has publicly implored the SEC to investigate the company on securities fraud charges for failing to inform hospitals and regulatory officials of the difficulties of cleaning the duodenoscopes after more than 13 patient deaths and 146 total incidents related to the tainted devices.