Commodity technology no longer fits with company’s focus on growth and innovation
Johnson & Johnson (J&J) has agreed to sell its cardiovascular surgical devices subsidiary, Cordis, to wholesale supplier Cardinal Health. The $2 billion (£1.3 billion) deal gives Cardinal access to Cordis’s range of stents, catheters, guidewires and related cardiovascular equipment, which have essentially become commodities.
Cardinal noted in a statement that its intention is to ‘help customers standardise around mature medical devices’, by streamlining supply chains and squeezing costs. The acquisition is part of Cardinal’s strategy to expand its portfolio of medical equipment, and fits with J&J’s intention to focus its cardiology business on more innovative growth products, such as drugs and diagnostic sensors.