Johnson & Johnson shopping its diabetes care division after cautious 2017 forecast

Three diabetes care units within Johnson & Johnson (J&J) could be sold, the company said, as it reported slightly better-than-expected earnings for the last quarter of 2016 and lowered expectations for the current year.

The units for which J&J is seeking out “strategic options” are LifeScan, Animas and Calibra Medical.

“Strategic options may include the formation of operating partnerships, joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together. All options will be evaluated to determine the best opportunity to drive future growth and maximize shareholder value. There can be no assurance that this process will result in any transaction or other strategic alternative of any kind,” the company said in a press release.

J&J’s earnings increased 19 percent to $3.81 in the fourth quarter, with revenue up 1.7 percent to $18.11 billion, driven by 2.1 percent growth in pharmaceuticals, its largest business, and “continued momentum” among its medical device business, though its sales growth dropped to 0.2 percent in the fourth quarter.

For 2017, J&J is anticipating sales between $74.1 to $74.8 billion. This was below shareholders’ expectations of $75.1 billion before the forecast was released.