Johnson & Johnson Blood Glucose Meter Business will be sold
- Mar 22, 2018 -

Johnson & Johnson announced on March 16 that the company had received a binding quoted offer from Platinum Equity, a leading private investment company, to acquire Johnson & Johnson's LifeScan business, adjusting for the usual transactions, with a transaction volume of approximately 21 billion U.S. dollars.

LifeScan, Inc. is a subsidiary of the Johnson & Johnson Group that specializes in the production of blood glucose monitoring products. It is also the main force of Johnson & Johnson in the field of blood glucose. The net revenue for 2017 is approximately US$1.5 billion.

In 1987, the birth of the ONE TOUCH series of blood glucose meters from LifeScan, Inc., through the innovative design, improved the experience of diabetic patients and became a milestone in the development history of pocket glucose meters. In 1994, LifeScan introduced its own products to the Chinese market.

According to news from Reuters on January 17th this year, Johnson & Johnson was in talks with buyers from China including Sanno Bio to sell its diabetes business. The total amount of this transaction may be as high as 3 to 4 billion. US Dollar, media commentary Johnson and Johnson suffered a strong squeeze from competitors in various segments of the diabetes sector, and its performance has been declining year by year.

According to PR Newswire, Ashley McEvoy, chairman of Johnson & Johnson’s medical device business, said: “LifeScan's OneTouch blood glucose monitoring products play an important role in the lives of millions of people with diabetes. After a thorough review of all strategic options, We firmly believe that this business will have a bright future under the leadership of Platinum Equity. This is part of our standardized portfolio management strategy. We will focus on the most promising businesses to help patients and drive growth."

Johnson & Johnson will continue to serve diabetics through innovative products, services, and solutions from the medical device, pharmaceutical and consumer businesses, including INVOKANA (canagliflozin) and INVOKAMET (canagliflozin/metformin HCl) and other drugs. Important leadership and innovation in the field of obesity surgery.

If the time is not extended, the commitment period for this offer is until June 15, 2018. During this period, both parties will arrange consultations and related work committees. If Johnson & Johnson accepts the offer, the transaction is expected to end by the end of 2018, but the normal closing conditions must be met. The company mentioned the transaction in its performance guide issued on January 23, 2018.