(CercleFinance.com) – Siemens Healthineers shares gained more than 3% on Friday on the Frankfurt Stock Exchange after Bloomberg reported that the medical technology group was considering a possible sale of its laboratory diagnostics branch.
Around 10:10 a.m., the stock advanced 3.4%, posting one of the strongest gains on the DAX index, up 0.4% at the same time.
According to Bloomberg, Siemens Healthineers is considering a number of possibilities regarding the future of its diagnostics division, with the stated objective of refocusing its activities.
According to the financial information agency, which cites sources familiar with the matter, a sale or spin-off of the company’s in vitro diagnostics business could bring it up to $8 billion.
The laboratory diagnostics branch of Siemens Healthineers offers analysis methods to identify diseases, but also for therapeutic monitoring and targeted, individualized treatment of patients.
According to Stifel analysts, this activity generates around 20% of Siemens Healthineers’ turnover, but only 4% of operating profit.
“We tend to think that this is good news from a fundamental point of view for the diagnostics division, which has lagged behind its peers,” they point out.
Stifel, which admits its preference for the scenario of a split, estimates that the operation could materialize within a horizon ranging from 12 to 18 months.
In view of current market conditions, the research office is, however, a little less optimistic regarding the valuation of the subsidiary, which it considers more reasonable to estimate at around six billion euros.
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