3M EXPLORING SALE OF DRUG DELIVERY SYSTEMS PRODUCT GROUP VALUED AT $1 BILLION
by John G. Baresky on 12/10/19
Could 3M be seeking to boost revenue or pay down long term debt?
3M ( NYSE: MMM ) is reportedly exploring it options to sell or spinoff its drug delivery systems unit. Based in Maplewood, Minnesota ( a suburb of St. Paul ), 3M ( formerly known as the Minnesota Mining and Manufacturing Company ) is a global conglomerate with long established business enterprises in consumer goods, healthcare, industrial products and worker safety.
3M has a robust presence in the healthcare sector
While 3M generates about $33 billion in sales annually, the drug delivery portfolio of products is a smaller part of a substantially large healthcare products unit. It is estimated drug delivery product revenue accounts for less than 2% of 3M’s total annual sales. Medical device manufacturers, brand and generic pharmaceutical manufacturers as well private equity investors can be considered as likely buyers if 3M does move forward with the sale of the business unit.
- Inhalation
- Microneedle
- Nasal
- Packaging
- Transdermal
Possible plans
for proceeds from sale of the drug delivery business unit
If 3M were to spinoff or sell the drug delivery unit, it could be marketed for around $1 billion. 3M may have plans to drop the proceeds of the drug delivery unit into the bottom line of its annual revenue totals or could apply it to pay down some of its long term debt which is approximately $19.4 billion.
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