Are you ready to dive into the world of medical technology and business acquisitions? Join Editor of the FT, Roula Khalaf, in this weekly Editor’s Digest as she selects her top stories to share with you.
- Johnson & Johnson’s Strategic Move:
- Johnson & Johnson has made a bold decision to put its stroke care business up for sale with a valuation goal of over $1 billion. This move is part of the company’s larger efforts to reorganize its medical technology division.
- Cerenovus, known for manufacturing surgical equipment used in treating stroke patients, is the focal point of this sale. The company has reached out to potential private equity and strategic buyers through advisors to gauge interest in the business.
- Financial Outlook:
- Speculations hint that Cerenovus could fetch a price ranging between $1 billion to $1.5 billion. However, there is a possibility that the auction process may end without a sale, leaving J&J with the decision to retain the asset.
- J&J’s medtech division was a significant contributor to the company’s $88.8 billion total revenue in the previous year. The healthcare giant is positioning its medtech sector as a key growth driver with previous acquisitions such as Abiomed and Shockwave Medical.
- J&J’s Acquisition Spree:
- J&J’s aggressive acquisition strategy was evident in its $14.6 billion deal last month to acquire neuroscience drugmaker Intra-Cellular. This buyout marked a significant move within the biotech industry.
- With substantial cash reserves and debt capacity for deals, J&J has embraced a focused approach, including reorganizing all medical device units under the medtech division umbrella.
In the fast-moving world of healthcare and technology, Johnson & Johnson’s strategic sale of its stroke care business is a dynamic move that underscores the company’s commitment to growth and innovation. Stay tuned to witness how this sale and future acquisitions shape the landscape of the medical technology industry.
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