Johnson & Johnson Wants to Sell Its Diabetes Care Business

The world’s largest health care company, Johnson & Johnson, is trying to sell its diabetes care business for up to $4 billion to Chinese buyers.

Several Chinese bidders are interested according to five people familiar with the situation who spoke to Reuters. The bidders include a consortium being formed by Shenzhen-listed Sinocare, and China Jianyin Investment (JIC), a unit of sovereign wealth fund China Investment Corp.

It was a year ago that Johnson & Johnson had it was reviewing options on its diabetes care companies and that one option was to sell it.

The company’s LifeScan unit has devices that monitor blood glucose levels, its Calibra company makes insulin delivery devices, and its Animas company makes insulin pumps. Animas said last year it would be shutting its business in both the U.S. and Canada

According to World Health Organisation estimates, the market in diabetes care in China is expected to grow.

“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 remarked.

According to several sources familiar with the matter, Johnson & Johnson has hired Goldman Sachs for the sale.

Disclaimer: We have no position in Johnson & Johnson (NYSE: JNJ) and have not been compensated for this article.