Jim Cramer

Johnson & Johnson will sell or spin off its diagnostics business during 2014.

“I bet CEO Alex Gorsky will shed JNJ's slow-growing diagnostics business this year and focus on the faster growing pharma franchise”

Said on

2 January 2014 · Mad Money, CNBC (Dow stock predictions for 2014)

Source

Runaway blue chip bull? Cramer’s Dow predictions · CNBC

Should come true

2014

How sure they sounded

I bet

Categories

Markets

Importance

1 of 5 · Single-company divestiture call; a sale process was already publicly known.

Outcome

Accurate Happened 16 January 2014.

On January 16, 2014 J&J announced a $4.15 billion binding offer from Carlyle for its Ortho-Clinical Diagnostics unit, later accepted, and the deal closed in 2014. J&J had already said a year earlier that it was exploring a sale, so this was not a bold call.

Evidence:

• https://www.fiercebiotech.com/medical-devices/carlyle-group-bids-4-15b-for-j-j-s-ortho-clinical-diagnostics-arm
• https://www.biospace.com/b-the-carlyle-group-b-ultimately-snags-johnson-and-johnson-s-diagnostics-unit-for-4-15-billion