3M sells off pharmaceutical business for $2.1 billion

The divestment of 3M’s pharmaceutical business is set to take place after the company announced a $2.1 billion deal involving three companies to split the division.

In Europe, Meda AB has agreed to take over 3M’s pharmaceutical operations in Europe for $857 million, subject to regulatory approval. For $875 million, Graceway Pharmaceuticals will assume responsibilities for 3M pharmaceuticals in North America and Latin America, while Ironbridge and Archer Capital have acquired the Asia Pacific region operations for $349 million.

The rights to 3M’s drugs will be split according to region, although Graceway Pharmaceuticals will acquire the rights to “certain IRM molecules”.

Of the 1,050 employees working in 3M’s pharmaceutical business, approximately 70 per cent will be retained by their new parent companies, a statement revealed.

Brad Sauer, executive vice president of 3M Healthcare, stated: “These are great brands and products, and we believe they will thrive in today’s very competitive pharmaceutical marketplace under the direction of their new owners.”

“I want to thank our employees for their outstanding contributions to our business and for delivering excellent service and quality to our valued customers,” he added.

3M Healthcare has been considering selling its pharmaceutical division since April, when Mr Sauer revealed that the best way for the pharmaceutical business to grow would be to allow it to become a dedicate pharmaceutical company, with a business model more suited to be able to “maximise its potential”.