Homepage / Technology / Johnson & Johnson trying to sell its diabetes care business to Chinese buyers for up to $4 billion
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Johnson & Johnson trying to sell its diabetes care business to Chinese buyers for up to $4 billion

Chinese bidders are circling a diabetes care business owned by the world’s largest healthcare company Johnson & Johnson in a deal that could fetch up to $4 billion, five people with direct knowledge told Reuters.

New Brunswick, N.J.-based J&J said in January last year it was evaluating options for its diabetes care companies, specifically LifeScan, Animas, and Calibra Medical. One option was a sale of the business, it said.

LifeScan makes devices to monitor blood glucose levels, which are key to controlling diabetes. Animas and Calibras — which J&J acquired in 2012 — make insulin delivery devices. In October, Animas, which makes insulin pumps, said it would shut its business in the United States and Canada amid increased competition and after failing to find a buyer.

Chinese interest in the J&J unit comes as the market for diabetes care in China is expected to grow rapidly. Almost one in three of the world’s diabetes sufferers lives in China, according to World Health Organisation estimates.

Among the potential bidders is a consortium being formed by Shenzhen-listed Sinocare, which develops and manufactures blood sugar monitoring systems, and China Jianyin Investment (JIC), a unit of sovereign wealth fund China Investment Corp. The group has hired an advisor to work on a bid, according to two sources.

“The evaluation of potential strategic options for LifeScan and Calibra Medical Inc. is ongoing and we do not have an announcement regarding these businesses at this time,” J&J said in a statement in response to Reuters request for comment.

The company has hired Goldman Sachs to work on the sale, according to three of the people. The bank declined to comment.

Sinocare’s investors relations office said it could not confirm the information when contacted by Reuters. JIC and CIC did not respond to requests for comment. The sources declined to be identified.

Asia accounts for more than 60 percent of global diabetes cases, with increasing levels of wealth, unhealthy diets and more sedentary lifestyles sparking “diabetes epidemics” in the region, according to BMI Research.

George Lin, chief financial officer of Hua Medicine, a diabetes-focused drug developer, told Reuters on Wednesday that according to the most recent market research there were more than 110 million diabetes patients in China alone.

“The market right now in the world is already close to $50 billion,” he said, referring to diabetes drugs. “In China, it is expected to grow from $6.6 billion in 2016 to $20 billion by 2025. This is a very large, fast-growing market.”

Lin left a senior role at Bank of America Merrill Lynch to join Hua in December.

It is not yet clear if potential Chinese buyers are interested in the whole of J&J’s diabetes care business or one or more of the member companies.

Sinocare, which has a market capitalisation of about $1.8 billion, in 2015 teamed up with Citic Securities to bid for Bayer’s diabetes devices business that was eventually sold to Japan’s Panasonic Healthcare Holdings, majority-owned by U.S. investment firm KKR.

JIC, wholly owned by CIC, mainly invests in the industrial manufacturing, consumption and information technology sectors, according to its website.

CIC’s vice-chairman and president, Tu Guangshao, said at a panel discussion during the Asian Financial Forum in Hong Kong this week that it would look for more investment opportunities in the healthcare industry.

The sale of the diabetes business has also attracted interest from global private equity players, according to the people with knowledge of the process. But analysts said China could offer a tonic to J&J’s struggling diabetes care unit and a turnaround opportunity for regional investors. Revenues at J&J’s diabetes care unit have been falling since 2012, a Reuters study of the company’s financial results found. In the first nine months of 2017, sales slid 7.7 percent year-on-year. In 2016, it suffered a similar decline.

Any sale by J&J of its diabetes device units would fit with a drive to exit from lower-margin, commoditized categories such as glucose meters and strips, but analysts said Asian buyers may be able to squeeze more out of the assets.

“Could a Chinese company extract more value from this than a multinational? It’s possible because they have different expectations of profitability than multinationals so they can be happy with lower margins,” said Franck Le Deu, Hong Kong-based senior partner at consultancy McKinsey.

“One complication of being in diabetes for a Chinese company is that you need a broad portfolio to be able to compete, and a broad footprint because it’s a very dispersed market,” he added. “So the investment levels needed to be competitive in diabetes are quite high, it’s not an easy game to play.”

Source: Tech CNBC
Johnson & Johnson trying to sell its diabetes care business to Chinese buyers for up to billion

Comments are closed.