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J&J seeking to divest manufacturing unit Noramco: sources

January 6, 2016
Life sciences

Johnson and Johnson is seeking to sell its manufacturer of active pharmaceutical ingredients, Noramco, in a move that could value the division at as much as $800 million, according to people familiar with the matter.

Noramco is attracting interest primarily from buyout firms, the people said this week. The unit has annual earnings before interest, taxes, depreciation and amortization of more than $70 million, some of the people added.

The sources asked not to be identified because the deliberations are confidential.

Representatives of Johnson & Johnson declined to comment.

Noramco manufactures the active ingredients in painkillers, including oxycodone.

Pharmaceutical M&A had its strongest year in history in 2015, and is expected to continue at a robust pace despite headwinds, including choppier valuations in the biotech space and unsteady credit markets.

(Reporting by Greg Roumeliotis and Carl O’Donnell in New York; Editing by Sandra Maler)

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