Source: Medical Device Business Review

Author: Yu Bai

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Eight hours ago, the Financial Times published a重磅消息 that Johnson & Johnson is planning to spend $1 billion (approximately RMB7.3 billion) Sell its Cerenovus stroke business.

Source: Screenshot from Financial Times

Sources say Johnson & Johnson "has reached out to potential private equity and strategic buyers through advisors to gauge interest in Cerenovus."

Two sources who wished to remain anonymous estimated its potential valuation atBetween 1 billion and 1.5 billion US dollars.

Johnson & Johnson established Cerenovus in 2017, a brand that combines its acquired Pulsar Vascular and Neuravi, along with the remaining Codman Neuro neurovascular product portfolio.

Johnson & Johnson's neurovascular business is currently headquartered in Irvine, California, USA, and is led by global president Mark Dickinson.

It is worth noting that if this transaction is successfully completed,This will be Johnson & Johnson's first reduction in the cardiovascular field in recent years.

In the past three years, Johnson & Johnson has heavily invested in the cardiovascular field, with major deals.Including the acquisition of heart pump manufacturer Abiomed for $16.5 billion at the end of 2022 and the purchase of Shockwave Medical, which specializes in producing devices for treating arterial blockages, for $13.1 billion last year.

However, insiders reminded that there might be variables in the auction process. For instance, Johnson & Johnson could decide to continue holding this asset.

Although Johnson & Johnson has not commented on this sale for the time being, its series of actions in recent years have clearly indicated that the medical giant is undergoing a profound strategic transformation.

As a giant in the global healthcare field, Johnson & Johnson's total revenue last year was $88.8 billion, of which the sales of the medical technology department were $31.8 billion.

Medical technology has become an important part of Johnson & Johnson's growth strategy, and the company launched 15 medical device products last year.

As its strategic importance increases, the medical technology sector is advancing comprehensive reforms with great momentum.

Johnson & Johnson redesigned its iconic logo in 2023 and last year de-emphasized the Cerenovus brand name along with Ethicon, DePuy Synthes, Biosense Webster, and Abiomed, unifying them under Johnson & Johnson MedTech.

The update of the logo and the removal of the name are not only for the "refreshing" of the image, but also driven by the company's new development direction and strategy.

Last year, Johnson & Johnson reorganized all its medical device divisions, spun off its consumer health division into an independent publicly listed company, Kenvue, and fully exited this division in May of last year.

Looking further back, December 2023,Johnson & Johnson MedicalOnce announced to be $280 million (approximately RMB2 billion) The price of its subsidiary Acclarent ENT was sold to Integra LifeSciences, a leader in neuromodulation.

Johnson & Johnson's Acclarent subsidiary, which was sold this time, is one of the largest providers of balloon sinus dilation globally and also one of the main business branches of Johnson & Johnson Medical, under the Johnson & Johnson Surgical division.

In July of the same year, Johnson & JohnsonFor $106.5 millionThe priceSelling the entire Blink product line to rival Bausch + Lomb, and soon afterAnnounced Investment$700 million to $800 millionTheReorganize orthopedic business.

A series of measures have confirmed what Du Anqing, the new CEO of Johnson & Johnson, explained when he took office."The Grand Direction of 'Accelerating and Simplifying Healthcare Operations'"。

In March last year, the chairman of Johnson & Johnson's orthopedics division pointed out meaningfully during an interview: "This is not a reshuffle, but a transformation."This statement not only reveals the strategic shift of Johnson & Johnson's orthopedics division but also reflects the development trajectory of the entire Johnson & Johnson Group in a new era."

From diversified expansion to focusing on core business, from scale-first to value creation, Johnson & Johnson is undergoing a profound strategic transformation.

By optimizing its product portfolio, focusing on flagship brands, and tapping into high-return markets, this century-old healthcare giant is reshaping its growth engine.

Johnson & JohnsonThe Road to Transformation: A Strategic Shift and a Profound Response to the Future Development Trends of the Healthcare Industry. In an increasingly competitive market, only through continuous innovation and precise focus can a company seize opportunities amid change and achieve long-term success.

Johnson & Johnson's strategic choices may very well be a microcosm of the future development of the entire healthcare industry.