Biomet decides to explore options for spinning out its 3i dental devices division, following Abbott’s lead and Goldman Sachs’ advice to another device maker
In a growing trend among device makers, Biomet Inc.announced that it’s exploring strategic options to spin out its 3i dental devices division.
The company is just testing the waters and a split isn’t guaranteed, but if completed the move will follow in some notable footsteps.
Abbott (NYSE:ABT) has met with mixed reactions over the last few months after deciding to carve out its research pharmaceuticals business into a separate firm called AbbVie.
Covidien (NYSE:COV) announced late last year that it would spin out its no-growth pharmaceuticalsdivision into a stand-alone business.
Privately owned Biomet expects to spend several months working on structure, management, governance and other matters related to a potential separation, and doesn’t intend to comment on the evaluation until a decision is made, according to a regulatory filing.
Some of that decision-making may be colored by Goldman Sachs’ advice to new Johnson & Johnson (NYSE:JNJ) CEO Alex Gorsky, urging him to think small.
“In our view, evidence is building across healthcare that smaller, more focused companies can perform better than their diversified peers,” Goldman analysts wrote last month.