GE recently confirmed the sale of its BioPharma business to Washington based Danaher Corporation for a total consideration, as under the agreement, of $21.4 billion. The consideration was inclusive of nearly $21 billion in cash and the assumption of certain pension liabilities by Danaher.
Reportedly, after factoring in the taxes and feeds involved in the transaction, as well as receivable balances, the net proceeds for GE was registered at $20 billion.
H. Lawrence Culp Jr., the CEO and Chairman at GE, termed the deal as a crucial achievement for the company in its multiyear transformation journey. He said the sale has reinforced the significant sources of the company to de-risk its balance sheet and keep solidifying its business position.
Now called as Cytiva, the BioPharma unit was earlier a part of the Life Sciences division of GE Healthcare. It manufacturers materials and equipment for helping pharmaceutical companies in discovering and in the mass-production of biopharmaceuticals, which are a class of drugs developed to fight diseases like psoriasis and rheumatoid arthritis.
The unit also enables researchers in exploring immunotherapy, the fast evolving field of medicine and therapy that can utilize the immune system of a body to detect and kill cancer or other diseases.
According to Culp Jr., the teams have completed this deal at a time of a tremendous global change. As the company moves forward, it will retain one of the leading healthcare firms in the world, leveraging its global scale and technical leadership and deliver better outcomes as well as more capacity for a world seeking precision health solutions, the CEO added.
GE Healthcare is retaining Pharmaceutical Diagnostics, which is a different part of its Life Sciences business unit. It is involved in developing contrast media used by radiologists. The division is established as a global leader in pharma diagnostics for medical imaging, catering to over 90 million patient procedures annually.