Private Equity's Newest Target: J&J?

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This episode of The Motley Fool's Market Checkup features a 20% biotech pop, big changes coming to two big pharma stocks, and the Affordable Care Act's October 1 insurance exchange debut.

In this video, health-care analysts David Williamson and Max Macaluso discuss the Reuters report that Johnson & Johnson is attracting interest from private equity. J&J is looking to unload the diagnostics portion of its medical devices and diagnostics business and such companies as Blackstone, KKR, and the Carlyle Group have supposedly offered sums approaching $5 billion. The diagnostics business is slower growing, has older devices, and has generally worse margins than the health-care conglomerate's other segments.

David and Max take a closer look at the news surrounding the J&J's diagnostics unit, whether J&J is making the right decision to change its corporate structure, and puts today's news in perspective amidst the big changes happening in the big pharma industry.

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The article Private Equity's Newest Target: J&J? originally appeared on

David Williamson owns shares of Pfizer, Abbott Labs, AbbVie, Johnson & Johnson, and Merck. Follow David on Twitter @MotleyDavid . Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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