MD+DI Online is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

ConvaTec’s Sale Ends an Era


One of the last vestiges of a 1980s buying spree has been sold.

In that decade, a number of large pharmaceutical companies bought medical device firms in an effort to diversify. One of the only drug companies to stick with the strategy, however, was Johnson & Johnson. Most of the drug giants sold their device units within a decade, as they narrowed focus to blockbuster drugs.

Another drug company that had stuck it out was Bristol-Myers Squibb, which held on to its ConvaTec wound-care business. But in August, it sold ConvaTec to two private equity firms, Nordic Capital and Avista Capital Partners. The selling price was $4.1 billion.

The drug giant hoped to use those proceeds to buy smaller drug maker Imclone Systems Inc. It placed a bid of $4.5 billion for the 83% of the company it does not already own. Why does it want Imclone instead of Convatec? Because, like other drug companies before it, Bristol-Myers Squibb wants to focus on developing blockbuster drugs.

Copyright ©2008 Medical Device & Diagnostic Industry
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.