Covidien Set to Become a Pure-play Medical Devices Company - Expected to sell its Pharmaceutical Business Unit

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					            Covidien Set to Become a Pure-play Medical Devices
         Company - Expected to sell its Pharmaceutical Business Unit
       Reference Code: GDME0759VPT                                                                                                            Publication Date: July 2011


       1          Table of Contents
       1    Table of Contents.................................................................1
           1.1 List of Tables .................................................................1
           1.2 List of Figures ................................................................1
       2    Summary .............................................................................2
       3    Covidien in Talks to Sell Pharma Business for $3-$4 Billion 2
           3.1 Overview .......................................................................2
           3.2 Strategic Rationale ........................................................2
             3.2.1    Pharmaceutical Business has been declining in
                      Sales over the Last Few Financial Years and is
                      projected to have Low Growth..............................2
             3.2.2    Increasing Focus on Medical Devices and
                      Increasing Divestiture from Pharmaceuticals .......3
             3.2.3    Uncertain Future of Covidien’s Newest Drug
                      Launches- Exalgo and Pennsaid..........................4
             3.2.4    Impact of Healthcare Reform in the US ................4
       4    Covidien’s Company Profile .................................................5
           4.1 Overview .......................................................................5
       5    Appendix ..............................................................................5
           5.1 Research Methodology .................................................6
           5.2 Secondary Research .....................................................6
           5.3 Primary Research..........................................................6
           5.4 Models ...........................................................................6
           5.5 Forecasts.......................................................................6
           5.6 Expert Panels ................................................................6
           5.7 GlobalData Consulting ..................................................7
           5.8 Contact Us.....................................................................7
           5.9 Disclaimer......................................................................7



       1.1        List of Tables
       Table 1: Covidien’s Pharmaceuticals Business, Revenue ($m),
                2008-2010 ................................................................2



       1.2        List of Figures
       Figure 1:  Covidien’s Pharmaceuticals Business, Revenue
                 ($m), 2008-2010 .......................................................2
       Figure 2: Recent Deals Executed by Covidien, Global, 2008–
                 2010 .........................................................................3




                                                                                                                                                        Market Analysis Alert
Covidien Set to Become a Pure-play Medical Devices Company -                                                                        GDME0759VPT /Published JUL 2011/ Page 1
Expected to sell its Pharmaceutical Business Unit
                                                                                                       © GlobalData. This report is a licensed product and is not to be photocopied
                                                                         3.2                 Strategic Rationale
       2       Summary                                                   3.2.1                    Pharmaceutical Business has been declining
                                                                                                  in Sales over the Last Few Financial Years
       In early June, many rumors surfaced about Covidien’s ongoing
                                                                                                  and is projected to have Low Growth
       talks to sell its pharmaceutical businesses. Covidien’s
       pharmaceuticals     business    includes     the   development,   3.2.1.1                   Dismal Performance of Pharmaceutical Business
       manufacture and distribution of specialty pharmaceuticals,
                                                                          Figure 1:                   Covidien’s Pharmaceuticals Business,
       active pharmaceutical ingredients, contrast products and                                       Revenue ($m), 2008-2010
       radiopharmaceuticals. In 2010, Covidien sold two businesses-
                                                                                          2,500
       nuclear pharmacies and specialty chemicals, which were
       reported under pharmaceuticals business. The company has
       experienced declining pharmaceuticals revenues due to patent                       2,000

       expiries, higher competition and pricing pressure.




                                                                           Revenue ($m)
                                                                                          1,500
       3       Covidien in Talks to Sell Pharma
               Business for $3-$4 Billion                                                 1,000


       3.1     Overview                                                                    500

       In early June, many rumors surfaced about Covidien’s ongoing
       talks to sell its pharmaceutical businesses. According to                             0
       Bloomberg News, Covidien has sought more than $3 billion for                                        2008                 2009                     2010
                                                                                              Contrast Products                   Radiopharmaceuticals
       the unit. JPMorgan Chase is rumored to be acting as its                                Specialty Pharmaceuticals           Active Pharmaceuticals Ingredients
       financial adviser.
                                                                          Source: GlobalData, Compan
				
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Description: Covidien Set to Become a Pure-play Medical Devices Company - Expected to sell its Pharmaceutical Business Unit Summary GlobalData’s medical equipment report “Covidien Set to Become a Pure-play Medical Devices Company - Expected to sell its Pharmaceutical Business Unit” provides key insights on the rationale behind the deal. The viewpoint provides analysis and possible implications on the global medical equipment services market as a result of the deal. This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData’s team of industry experts. Scope - Deal overview of the rumored decision by Covidien to sell its pharmaceuticals business. - Strategic rationale behind the deal including analysis on the impact of the deal on the industry and on the company including analysis of the current state of Covidien’s pharmaceuticals business. - Company profile of Covidien. Reasons to buy - Understand the business strategy behind deal by one of the significant medical equipment service providers by the industry. - Explore possible repercussions on the market dynamics of medical equipment and pharmaceuticals industry.
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