Panasonic Healthcare to snap up Bayer diabetes unit for $1.1 billion
- Bayer is selling its Diabetes Care Unit to Panasonic Healthcare Holdings in order to focus more on its core Rx and OTC franchises and business lines.
- The deal is expected to close in Q1 2016.
- Last year, Bayer's Diabetes Care Unit did about $1 billion in business.
Focus, focus, focus. That's the key theme at Bayer nowadays. By shedding its Diabetes Care Unit, Bayer is making more room for its suite of pharmaceuticals, including new blockbuster drugs, such as the bloodthinner Xarelto and the eye drug Eylea. In addition, last year, Bayer acquired Merck's OTC business for $14.2 billion.
As for Panasonic Healthcare, which is a joint venture between Panasonic Corp. and the private-equity firm KKR, the goal is to build out its distribution channels and enjoy the benefits of greater global reach.