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H&F weighs $9 billion-plus sale of medical device maker Cordis, Bloomberg News reports

  //health-fitness.news-articles.net/content/2026/ .. -device-maker-cordis-bloomberg-news-reports.html
  Published in Health and Fitness on Saturday, February 7th 2026 at 22:10 GMT by reuters.com
      Locales: UNITED STATES, SWITZERLAND

February 8th, 2026 - Johnson & Johnson (J&J) is reportedly considering the sale of its Cordis medical device division for upwards of \$9 billion, reigniting speculation about the shifting landscape of the healthcare sector and the ongoing trend of mergers and acquisitions (M&A). This potential divestiture, first reported by Bloomberg News, comes after several years of Cordis being quietly shopped for a buyer and signals a strategic recalibration within the pharmaceutical giant.

Cordis, a long-standing name in the cardiovascular device space, specializes in the manufacturing of devices critical to procedures like angioplasty and stenting - both vital for treating heart disease, a leading cause of death globally. Acquired by J&J in 1999 at the height of the medical device boom, Cordis once held a significant market share. However, in recent years, the division has faced increasing competition and struggled to maintain its position amidst rapid technological advancements and the rise of more agile, specialized competitors.

The decision to potentially offload Cordis isn't isolated. It's part of a broader wave of M&A activity sweeping the healthcare industry. Several factors are driving this trend. Firstly, the aging global population is increasing the demand for healthcare services and medical devices. This creates a fertile ground for investment and growth. Secondly, the relentless pace of technological innovation - particularly in areas like minimally invasive surgery, robotic assistance, and advanced materials - requires significant capital expenditure and specialized expertise. Larger companies are often looking to acquire innovative startups or consolidate divisions that don't align with their core strategic focus.

J&J's potential move appears to be a classic example of portfolio streamlining. The company is increasingly focusing on its pharmaceutical and medtech segments with the highest growth potential, notably in areas like oncology, immunology, and digital surgery. Cordis, while still a substantial business, may no longer fit neatly into this evolving strategy. Selling the division would allow J&J to unlock capital that can be reinvested in these high-growth areas and potentially return value to shareholders.

Several "strategic buyers" and private equity firms are already circling Cordis, according to sources familiar with the matter. Strategic buyers likely include other established medical device manufacturers looking to expand their cardiovascular portfolios or gain access to Cordis's existing customer base and distribution network. Private equity firms, on the other hand, will see Cordis as an opportunity to revitalize a well-known brand through operational improvements and targeted investments. Potential PE firms will likely focus on streamlining operations and finding efficiencies. They may also explore new product development or geographic expansion.

The future for Cordis under new ownership could be multifaceted. A strategic buyer might integrate Cordis into their existing operations, leveraging synergies and expanding their market reach. A private equity firm might opt for a more radical transformation, potentially spinning off parts of the business or focusing on niche areas with higher growth potential. Regardless of the outcome, experts predict that significant investment will be needed to modernize Cordis's manufacturing processes and accelerate innovation.

The cardiovascular device market is expected to continue growing in the coming years, driven by the increasing prevalence of heart disease and the demand for less invasive treatments. However, competition is fierce, with companies like Abbott, Medtronic, and Boston Scientific vying for market share. Cordis will need to differentiate itself through innovation and cost-effectiveness to succeed in this challenging environment.

The sale process is still in its preliminary stages, and there's no guarantee a deal will be finalized. However, if successful, the Cordis sale would be one of the largest healthcare M&A transactions of the year so far, further illustrating the dynamic nature of the industry and the constant reshaping of the competitive landscape. Industry analysts will be closely watching this deal, as it could set a precedent for future divestitures and consolidations within the medical device sector.