Johnson & Johnson To Sell Cerenovus Stroke Business For $1 Billion

U.S. pharmaceutical company Johnson & Johnson (JNJ) is planning to sell its stroke care business called “Cerenovus” for at least $1 billion U.S.The sale is part of Johnson & Johnson’s ongoing efforts to restructure its medical technology division. The company is seeking a valuation of between $1 billion U.S. to $1.5 billion U.S. for the Cerenovus unit, according to media reports.Cerenovus makes surgical equipment for use on medical patients who have suffered a stroke. The business has reportedly been presented to potential private equity and strategic buyers. It’s not clear how much interest, if any, there has been from potential buyers.The sale of Cerenovus comes as Johnson & Johnson undertakes a multi-year internal restructuring following the Covid-19 pandemic. Over the last three years, the pharmaceutical company has spent more than $30 billion U.S. to acquire several medical device makers.At the same time, the company has determined that it would be best to offload the Cerenovus surgical equipment business as part of its ongoing restructuring. Johnson & Johnson has struggled financially as sales of the company’s Covid-19 treatments has waned over the past few years. The company’s stock has risen only 2% in the last 12 months, underperforming the broader market. The stock currently trades at $156.13 U.S. per share.