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Thermo Fisher Scientific has put part of its diagnostic unit for sale for around $ 4 billion in the last decision of a life sciences to try to unload some of its low growth assets.
The company has approached Investment Capital Companies Through advisers in recent weeks to test interest in part of its diagnostic activity, which includes its microbiology unit which manufactures testing equipment test equipment, depending on three people familiar with the problem.
The diagnostic units for sale generate around $ 300 million in adjusted income and $ 1.4 billion in sales per year, constituting about a third of the wider specialty of Thermo Fisher diagnosis division. Thermo Fisher seeks to sell the units for more than $ 4 billion, added two people.
The sales process comes in the middle of a volatile period for thermo fisher and the wider health care sector. Thermo Fisher’s shares fell 20% this year, which gives it a market value of $ 157 billion at the end of the exchanges on Thursday, while investors are concerned about the impact of President Donald Trump’s reductions at the National Institutes of Health on his sales.
The shares of Rivals Danaher and Becton Dickinson are also down 11% and 23% respectively this year.
Thermo Fisher refused to comment. There is no guarantee that the auction process will lead to an agreement and that Thermo Fisher could decide to keep the asset, warned people.
Thermo Fisher’s decision to unload some of its lower growth diagnostic assets follows a similar decision of its Rival Becton. Earlier this year, Becton has unveiled plans to Separate his life science businesswhich includes a diagnostic segment. The Financial Times previously indicated that Becton had had discussions with investment capital groups on the sale of this unit. Becton could also choose to list the unit.
The latest Thermo Fisher’s latest disinvestment was six years ago when he sold his anatomical pathology business to the Japanese health group PHC Holdings Corporation for $ 1.1 billion. Earlier this year, Thermo Fisher agreed to buy the Solventum purification and filtration activity for $ 4.1 billion
Marc Casper, Managing Director of Thermo Fisher, played on the impact of NIH cups, saying that the swinging of the congress on the budget of the institutes can mean that the reductions end up being smaller than initially planned.
“This should be a point of confidence,” said Casper at a conference on investors last month.
Thermo Fisher has also joined a number of other health care companies to respond to Trump administration calls to increase its US manufacturing presence, committing to spending an additional $ 2 billion over the next four years.