The drugmaker is seeking about $2 billion for the unit, people with knowledge of the matter said earlier this week. JPMorgan contacted prospective buyers in recent days and plans to approach other medical-device makers and private-equity firms, said the people, who declined to be identified because the matter is private.

AstraZeneca is facing a decline in sales over the next four years as patent protection is lost on two of its biggest selling drugs, Nexium and Seroquel. AstraZeneca estimates it needs to generate between $4 billion and $6 billion in that time to meet its sales target range of $28 billion to $34 billion.

“AstraZeneca continues to evaluate all alternatives for value maximization from this business and any final decision will only be made when the results of the review have concluded,” the London-based company said in an e-mailed statement today.

AstraZeneca shares closed down 4.5 pence, or 0.2 percent, to 3,058 pence at 4:35 p.m. in London trading.

Medical Devices

Astra Tech, which also makes medical devices for urology and surgery, has 2,200 employees and owns subsidiaries in 16 markets. The Moelndal, Sweden-based company had sales of $506 million in 2009. AstraZeneca bought U.S.-based Atlantis Components Inc. for $71 million in 2007, which gave Astra Tech access to computer-aided design technology for dental implant abutments.

Astra Tech, the third-biggest dental implant maker behind Swiss rivals Straumann Holding AG and Nobel Biocare Holding AG, could fetch between $1.8 billion and $2.1 billion, according to analysts at Sanford C. Bernstein in London.

There could be a number of potential buyers, including U.S.-based rivals Biomet Inc., Dentsply International Inc. and Zimmer Holdings Inc. as well as 3M Co. and Danaher Corp., Bernstein analysts said in a report earlier this week. Astra Tech could also attract medical technology companies such as Johnson & Johnson and Medtronic Inc. looking to enter the dental implant market, the analysts said.

Bernstein estimates the earnings before interest and taxes margin on Astra Tech’s dental business, which represents half of the company’s sales, is between 25 percent and 30 percent.

The analysts said a bidding war over Astra Tech could also increase interest in Nobel Biocare, which has been the subject of takeover speculation. The analysts said a lack of interest in Astra Tech would likely take a bid for Nobel Biocare “off the table.”

Source: www.bloomberg.com