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.
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.