Johnson & Johnson has announced that is to sell its diabetes business, LifeScan, to private equity firm Platinum Equity for $2.1bn, CNBC has reported. The company received the offer back in March and has now agreed to the takeover.
The acquisition will fully disrupt the diabetes market; however, the business will continue to play a significant role in the lives of millions of diabetes patients.
LifeScan remains a leader in blood glucose monitoring in the US and is responsible for the launch of products under the OneTouch umbrella, which accumulated a net revenue of up to $1.6bn last year alone.
The news follows on from Johnson & Johnson’s continuing move to exit areas of healthcare where it is facing increasing competition.
Over 9% of the US population had diabetes in 2015, a figure that continues to grow each year. The company has also recently sold off its sterilisation arm to Fortive Corp for $2.7bn.
Nonetheless, the company has sought to reassure diabetes patients that he company will continue to serve those impacted by the disease by developing products, services, and solutions from its medical device, pharmaceuticals, and consumer businesses.