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Johnson & Johnson reportedly shopping its blood-testing division

  • Johnson & Johnson (JNJ +0.7%) is making the rounds to companies that might be interested in buying its blood-testing division, which could fetch around $5B.
  • JNJ's Ortho Clinical Diagnostics unit makes tests that can reveal a patient's blood type and screen for viruses like HIV and hepatitis C. It also makes tests that help diagnose a heart attack and assess damage to the heart.
  • The testing business is part of a $46B world-wide market for in vitro diagnostics that is growing 6% - 7% a year.
  • A potential deal could be wrapped up by as early as the year's end.
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Comments (6)
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    Why are they selling this division?
    6 Sep 2013, 01:56 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (773) | Send Message
     
    $3B hip replacement settlement funds.
    6 Sep 2013, 02:53 PM Reply Like
  • Ruckusfan
    , contributor
    Comments (24) | Send Message
     
    Why are they selling?

     

    JNJ may think that the market does not adequately reflect the value of the unit. If the unit is not too integrated with other JNJ business units it could unlock a lot of value to spin it off or sell it.

     

    A second reason may be that they see their technology as obsolete and want to get value for the business while they can, before the value of the unit drops. See this weekend's WSJ article about Theranos.
    7 Sep 2013, 10:23 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1710) | Send Message
     
    Can you link to Theranos article?
    8 Sep 2013, 01:24 AM Reply Like
  • Ruckusfan
    , contributor
    Comments (24) | Send Message
     
    http://on.wsj.com/14wQE4b
    8 Sep 2013, 06:19 PM Reply Like
  • spald_fr
    , contributor
    Comments (2803) | Send Message
     
    Go to Theranos website and see who is on their board of directors.

     

    This is great Science.
    11 Sep 2013, 12:42 PM Reply Like
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