http://www.rttnews.com/Content/TopStories.aspx?Id=1641351
(RTTNews) - Medical devices maker Covidien Plc (COV: News ) is considering a sale of its pharmaceutical business, Bloomberg reported Tuesday, quoting people with knowledge of the matter. The sale is expected to fetch up to $4 billion.
The healthcare firm operates in three segments: Medical Devices, Pharmaceuticals and Medical Supplies. The company generated $10.43 billion in sales in fiscal 2010, with Medical Devices contributing $6.72 billion and the Pharmaceutical segment accounting for $1.99 billion sales of the total.
The Pharmaceuticals segment includes specialty pharmaceuticals, active pharmaceutical ingredients, contrast products and radiopharmaceuticals. In the recent second quarter, the division reported sales of $490 million, down 4 percent from last year, with the drop reflecting the sale of the U.S. nuclear pharmacies business in the third quarter of 2010.
While announcing the second-quarter results in April, the company also said it expects 2011 sales of the Pharmaceuticals segment to be down 3 percent to flat, while total net sales are expected to increase 8 percent to 11 percent from last year.
Covidien was reportedly in discussions with another healthcare company about the sale recently, but the talks fell through. There are other companies interested in buying the drug unit.