Toshiba Corp. and a Bain Capital are reportedly planning to make final bids on Panasonic Corp's healthcare business, which could go for as much as $1.5 billion, according to Reuters. for Panasonic's healthcare unit. Other players vying for the company's billion-dollar healthcare unit include TPG Capital and Kohlberg Kravis Roberts & Co. (KKR).

A $1.5 billion bid would be significantly higher than previous valuations. In May of this year, analysts had predicted the sale would be worth approximately $978 million. Over the next month, analysts predict the company will short list potential buyers and enter a set of exclusive negotiations with one bidder.

For companies like KKR and Bain, purchasing Panasonic's healthcare division could pave the way towards an IPO. Following more than $1 billion in expenditures on two separate CROs, KKR is familiar with the industry. For its part, Toshiba could use pain-relief laser treatments, blood glucose monitors and ultrasound devices manufactured by Panasonic to pad its consumer electronics division.

Over the next two years, the company will spend an estimated $25 million on a restructuring initiative. By cashing out its healthcare division, the company would gain some breathing room and a bit of liquid capital.

While Panasonic's healthcare division is profitable, other Japanese companies like Olympus and Sony are facing significant pricing pressures for their medical technologies. Both these giants are banding together to sell imaging technologies and endoscopes. In part, this initiative is due to lower global demand for consumer products. By joining forces in the medical device arena, both these ailing companies hope to turn their earnings around.