AstraZeneca is reportedly shopping Astra Tech, the Swedish maker of dental implants and other medical devices. The sale, expected to fetch as much as $2 billion, will be facilitated with the assistance of JP Morgan Chase and Co., according to numerous news reports.
Swiss companies Nobel Biocare and Straumann are believed to be potential buyers. 3M and Danaher have also been mentioned.
Representatives for Astra Tech called the reports "rumors" in an e-mail to DrBicuspid.com, and a media spokesperson for AstraZeneca declined to comment.
The move by U.K.-based AstraZeneca is seen as an attempt to weather severe dips in sales expected to hit the company as patents on pharmaceutical drugs expire with no replacements on the horizon. During the recession, patients have gravitated toward cheaper bridges over pricey implants, hurting Astra Tech's bottom line. However, there is room for growth in the U.S. market, and as the economy recovers, more patients are expected to opt for implants, which offer myriad advantages over bridges.
Astra Tech's other products, such as a blood filter and a breathing aid, may make it less appealing to companies specializing in dental. However, other pharmaceutical companies wishing to diversify may see Astra Tech's array of products as appealing. Astra Tech sales topped $500 million in 2009, and the company has a staff of roughly 2,200.
AstraZeneca is anticipated to use the money from Astra Tech's sale for increased share buybacks or acquisitions in its pharmaceuticals operation, according to news reports.
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