J&J Unit Receives Bid For Breast-Care Unit

A Johnson & Johnson (JNJ) unit received an offer from private-equity firm GTCR Golder Rauner LLC for its breast-care business.

The division has been exploring a possible sale to focus on areas with higher growth potential.

J&J has been among those in the drug industry that have been streamlining amid increasing regulatory hurdles for drug approvals, rising development costs and as the broader economy weighs on health-care spending. The giant health-care products maker has also been hurt by generic competition on some of its big selling prescription drugs.

The "irrevocable, unconditional" offer, by GTCR's Devicor unit for an undisclosed amount, is for the Ethicon Endo-Surgery Inc. division that sells products designed to help diagnose the disease in its early states. The products include breast-biopsy and tissue markers as well as marketing and distribution rights for its Neoprobe gamma detection systems.

Ethicon Chairman Karen Licitra said, "We believe this offer demonstrates commitment from Devicor and GTCR to develop the breast care business to its full potential."

The J&J unit has until June 15 to accept the offer. Pending regulatory approvals, the deal would be expected to close by the third quarter. If approved, the breast-care unit employees are expected to transfer to Devicor.

J&J shares closed Monday at $64.82 and were inactive premarket. The stock is up 22% in the past year, less than the broader market.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail];