Reginal Thomas
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Cardinal Buying Johnson & Johnson's vascular technology unit Cordis for $1.9 Billion

Johnson & Johnson has agreed to sell its Cordis vascular technology unit to Cardinal Health for $1.9 billion. The firm is completing its exit from the cardiovascular stent business. Cardinal is a drug distribution companies, is expanding its medical equipment offerings for physicians and said it would be able to sell Cordis products as part of its sales network. It expects the deal to boost 2017 earnings by 20% per share. Ross Muken, an analyst for Evercore ISI said in a research note, "While this transaction is not without obvious risks and does mark a change in CAH's overall business model, we believe the financial attractiveness outweights this fact."