3M Selling Drug Business for $2.1 Billion

| About: 3M Company (MMM)
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3M Selling Drug Businesses for $2.1B [AP]

Summary: 3M, manufacturer of items from Post-Its to stethoscopes, is selling its branded drug business in three deals totaling $2.1 billion. Graceway Pharmaceuticals Inc., Swedish drug manufacturer Meda AB and Australian investment group Archer Capital will purchase the company's global pharmaceutical units in deals expected to close in Q4. Pharmaceuticals represent about 20% of 3M's healthcare division, which saw sales grow 4.7% during the first three quarters -- slower than any other 3M unit. Graceway said the purchase fits its strategy of providing products that address therapeutic specialties; Meda said the acquisition of 3M's European unit will broaden its product offerings and help it approach its goal of becoming the leading specialty pharmaceutical company in Europe; and Archer Capital said it bought 3M's pharmaceuticals unit because of its diverse, high-growth products, strong market positions and growing geographic reach.
Related links: Additional commentary: Wall Street Journal, Bloomberg
Potentially impacted stocks and ETFs: 3M Co. (NYSE:MMM) • Competitor: Nucryst Pharmaceuticals Corp. (NCST) • ETFs: Vanguard Industrials ETF (NYSEARCA:VIS), iShares KLD Select Social Index (NYSEARCA:KLD), DIAMONDS Trust, Series 1 (NYSEARCA:DIA), iShares Dow Jones US Industrial (BATS:IYJ), and Industrial Select Sector SPDR (NYSEARCA:XLI) have MMM as a top-10 holding

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