Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) is now facing competition from Olympus Corporation (TSE: 7733) in Japan, as well as in Europe and the US. Japan's Ministry of Health has approved Olympus's small bowel capsule endoscope for use. Given Imaging already markets its own capsule endoscopes for the small and large intestine and for the esophagus in Japan.
Given Imaging CFO Yuval Yanai told "Globes", "In terms of competition, if there is a place where Olympus can be a major competitor, it's Japan, in contrast to Europe and the US, where the level of competition is insignificant and has no material affect on our business."
Yanai added, "Nevertheless, we operate in Japan through a large distributor, Suzuken, which is bigger than Olympus. We're well positioned in the market and together with our significant technological edge, we believe that this will be a factor in the competition."
Given Imaging reported its first large-scale sales in Japan in the second quarter of 2008. Yanai said that these sales amounted to several million dollars.
Yanai said, "In contrast to the US, where Olympus entered the market seven years after us, there is still a need to educate the Japanese market. Olympus will have to make a marketing effort, which will help us too. Competition has a positive side. In any event, I believe that there will always be room for both competitors in such a market."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2008
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