AstraZeneca Confirms It Is Mulling Strategic Options For Astra Tech

AstraZeneca PLC confirmed it is considering the spin-off of Astra Tech business, Reuters reported. AstraZeneca hired JP Morgan Chase to help with the review of options for the dental implants and medical devices maker. A source familiar with the situation told Reuters earlier this week that the Anglo-Swedish drugmaker was looking to sell the Swedish-based business for $2 billion. Reuters reported Astra Tech could be of interest to privately held companies and private equity firms according to industry analysts.

(Reuters) – AstraZeneca (AZN.L: Quote, Profile, Research, Stock Buzz) confirmed on Friday it was considering spinning off Astra Tech and had hired JP Morgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz) to help with a strategic review of the dental implants and medical devices unit.

A source familiar with the situation said earlier this week that the Anglo-Swedish drugmaker was looking to sell the Swedish-based business for some $2 billion after hiring the bank as adviser. [ID:nN15278762]

“AstraZeneca continues to evaluate all alternatives for value maximisation from this business and any final decision will only be made when the results of the review have concluded,” the company said in a brief statement.

The Astra Tech business could be of interest to U.S. companies such as privately held Biomet, Medtronic (MDT.N: Quote, Profile, Research, Stock Buzz), 3M (MMM.N: Quote, Profile, Research, Stock Buzz), Danaher (DHR.N: Quote, Profile, Research, Stock Buzz) and Dentsply International (XRAY.O: Quote, Profile, Research, Stock Buzz), as well as private equity firms, according to industry analysts.

In Europe, it is also likely to be looked at by Swiss dental implant firms Nobel Biocare (NOBN.VX: Quote, Profile, Research, Stock Buzz) and Straumann (STMN.S: Quote, Profile, Research, Stock Buzz).

(Reporting by Ben Hirschler, editing by Kate Kelland)