• The CEO of optical giant Olympus has resigned after being accused of buying illegal drugs.
• Stefan Kaufmann’s departure as CEO sent the company’s shares down nearly 6% on Monday.
• Olympus controls more than two-thirds of the global endoscope market.

Olympus Company CEO Stefan Kaufmann has left the optical giant following allegations he purchased illegal drugs.

The company announced Monday that Kaufmann was asked to resign after an investigation and a unanimous decision by the board of directors.

Director and Executive Director Yasuo Takeuchi will assume Kaufmann’s responsibilities on an interim basis pending the selection of a new CEO. He was previously its boss since 2019.

The company’s shares fell 5.6% on the Tokyo Stock Exchange following the announcement.

“After receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs, Olympus, in consultation with external legal counsel, immediately investigated the facts, made a report to the investigating authorities and cooperated fully to their investigation,” the company said in a statement. statement.

He said that based on the findings, Kaufmann likely acted inconsistently with Olympus’ global code of conduct, core values ​​and corporate culture.

As a result, he was asked to submit his resignation and accepted this request, which is effective immediately, the firm added.

Kaufmann worked at Olympus for more than 20 years, becoming CEO in April 2023. He has been a board member since 2019.

No further information has been made public about the type of medication Kaufmann allegedly purchased. He has not been charged with any crime.

Police searched his home in June but found no illegal substances. Kyodo news agency reported.

Founded in Tokyo in 1919, the company is best known in the mass market for its cameras, although it sold this branch of its business in 2021.

Its main business is manufacturing medical technologies, including surgical endoscopes and ultrasound processors.

In 2022, the company reported holding 70% of the global gastrointestinal endoscope market.

Japan has strict laws against drug use. In 2015, Julie Hamp, a senior media advisor at Toyota Motor Corporation, spent 20 days in a Tokyo prison before being released after being arrested on suspicion of importing a pain medication into the country without prior authorization.

Business Insider was unable to reach Stefan Kaufmann for comment.