Johnson & Johnson (J&J) will sell its stroke treatment device business and aims for a valuation of more than one billion dollars.

The company from New Jersey has approached potential private-equity and strategic buyers through advisors for Cerenovus, a manufacturer of surgical devices for stroke treatment. According to informed sources, the sale proceeds could range between one and 1.5 billion dollars. The discussions are still in an early stage, and J&J could ultimately decide against a sale. The company declined to comment on "market rumors or speculation.

The medical technology division of J&J generated sales of 31.8 billion dollars in 2023, significantly contributing to the company's total revenues of 88.8 billion dollars. With a market capitalization of 375 billion dollars, J&J is the second-largest pharmaceutical company worldwide.

In recent years, the company has invested over $30 billion in acquisitions of medical technology companies, including the purchase of heart pump manufacturer Abiomed for $16.5 billion at the end of 2022 and the acquisition of Shockwave Medical, a specialist in arterial occlusive diseases, for $13.1 billion last year.

It was only in January that J&J announced the largest biotech acquisition in over a year: The company is acquiring Intra-Cellular Therapies, a developer of neuroscience therapies, for $14.6 billion. Analysts from Jefferies emphasize that J&J has one of the highest cash and debt capacities for acquisitions in the sector.

The company has drastically streamlined its structure in recent years. After the spinoff of the consumer goods business under the Kenvue brand, J&J completely withdrew from this sector in 2023. The planned sale of Cerenovus would further advance the realignment of the medical technology division.