Johnson & Johnson (NYSE:JNJ) took another step toward the exit door for the diabetes business, agreeing to a $2,1 billion offer from private equity shop Platinum Equity for its LifeScan blood glucose monitoring unit.
The New Brunswick, N.J.-based healthcare conglomerate early last year announced a strategic review of its LifeScan, Animas and Calibra Medical diabetes businesses and later elected to shutter the Animas insulin pump subsidiary.
Today J&J said it has until June 15 to accept the offer, which if accepted would likely close by the end of the year.
“LifeScan’s OneTouch blood glucose monitoring products play an important role in the lives of millions of patients living with diabetes, and following a thorough review of all strategic options, we feel confident that the business would have a promising future with Platinum Equity,” consumer medical devices chairwoman Ashley McEvoy said in prepared remarks. “This initiative is part of our ongoing, disciplined approach to portfolio management to focus on our most promising opportunities to help patients and drive growth.”
The news takes Chinese glucose monitor maker Sinocare (SZ:300298) and a sovereign wealth fund there out of the running. In January the duo was said to be in the hunt for LifeScan and Calibra Medical’s insulin delivery device operation.