A Johnson & Johnson (JNJ) unit received an offer from
private-equity firm GTCR Golder Rauner LLC for its breast-care
business.
The division has been exploring a possible sale to focus on
areas with higher growth potential.
J&J has been among those in the drug industry that have been
streamlining amid increasing regulatory hurdles for drug approvals,
rising development costs and as the broader economy weighs on
health-care spending. The giant health-care products maker has also
been hurt by generic competition on some of its big selling
prescription drugs.
The "irrevocable, unconditional" offer, by GTCR's Devicor unit
for an undisclosed amount, is for the Ethicon Endo-Surgery Inc.
division that sells products designed to help diagnose the disease
in its early states. The products include breast-biopsy and tissue
markers as well as marketing and distribution rights for its
Neoprobe gamma detection systems.
Ethicon Chairman Karen Licitra said, "We believe this offer
demonstrates commitment from Devicor and GTCR to develop the breast
care business to its full potential."
The J&J unit has until June 15 to accept the offer. Pending
regulatory approvals, the deal would be expected to close by the
third quarter. If approved, the breast-care unit employees are
expected to transfer to Devicor.
J&J shares closed Monday at $64.82 and were inactive
premarket. The stock is up 22% in the past year, less than the
broader market.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;