Reports: J&J Starts Sale Process For Clinical Diagnostics Unit

(RTTNews) - Healthcare giant Johnson & Johnson (JNJ) has launched a sale process for its blood-testing unit that could be worth about $5 billion, according to media reports on Friday.

Johnson & Johnson's advisers have reportedly commenced talks with other health-care companies and private equity firms that may be interested in buying the unit, known as Ortho Clinical Diagnostics, Inc.

The Raritan, New Jersey-based unit makes tests that can reveal a patient's blood type and screen for viruses like HIV and hepatitis C. It also makes tests that help diagnose a heart attack and detect heart injury.

The unit, with annual sales of about $2 billion, has more than 2,500 employees worldwide. It has manufacturing operations in Rochester, New York, Pompano Beach, Florida, and Cardiff, Wales.

In January, Johnson & Johnson said it was initiating an exploratory process to evaluate strategic options for the Ortho Clinical Diagnostics business. At that time, the company noted that the unit "could have greater potential from operating as part of another organization whose focus was more closely aligned to its core strengths, or as a stand-alone company.

Johnson & Johnson, like other major drug makers, has been divesting non-core businesses and cutting costs amid generic competition.

In mid-July, the New Brunswick, New Jersey-based maker of Listerine antiseptic mouth-rinse, Acuvue contact lenses and Band-Aid reported a profit for the second quarter that more than doubled from the prior year, reflecting higher revenues and lower charges.

JNJ closed Friday's trading at $87.16, up $0.12 or 0.14 percent on a volume of 10.04 million shares.