Johnson & Johnson receives bids for diagnostics unit

Johnson & Johnson's (J&J's) Ortho Clinical Diagnostics unit has been the subject of preliminary bids from some of the world's largest private equity firms.

The unit, which produces blood screening equipment and conducts laboratory blood tests, has been valued at around $5 billion (3.08 billion pounds), Reuters reports.

First-round bids were received last-week, with Blackstone Group, Bain Capital and BC Partners believed to be among the interested parties. 

J&J said in January 2013 that it intended to explore alternative arrangements, asking JPMorgan to conduct the sale of the unit, which has annual sales of around $2 billion. 

The tests produced are considered to be less profitable than the more modern molecular diagnostics and the decision to shed the business comes at a time when a number of pharmaceutical companies are selling off divisions as a result of price and regulatory pressures.

Pfizer recently divested its animal health products business, while Abbott Industries sold its branded drugs unit earlier in the year.