Biotech and Pharma

J&J says it's received a $2.1 billion bid for LifeScan diabetes business

Key Points
  • The offer to Johnson & Johnson for LifeScan is from private equity firm Platinum Equity.
  • J&J said last year it would close its Animas business and exit the insulin pump market.
A job seeker talks to a Johnson & Johnson job recruiter at a career fair in Washington, D.C.
Andrew Harrer | Bloomberg | Getty Images

Johnson & Johnson said Friday it has received an offer of about $2.1 billion for its LifeScan business from private equity firm Platinum Equity.

The blood glucose monitor business generated net revenue of about $1.5 billion last year. J&J has until June 15 to accept the offer, unless it's extended. If accepted, the deal is expected to close by the end of the year.

"This is an important investment for us in a business that serves millions of patients around the world," Platinum Equity Chairman and CEO Tom Gores said in a statement.

The transaction was included in the earnings forecast J&J gave in January.

Last year, J&J said it was reviewing strategic options for several of its diabetes businesses, including LifeScan, Calibra Medical and Animas. In October, J&J announced it had decided to close Animas and exit the insulin pump market. It chose Medtronic as its partner to transition current patients.

Shares of J&J dipped 0.6 percent in morning trade.