Health Care

General Electric Stock Is Soaring and Analysts Are Backing It Up

General Electric Stock Is Soaring and Analysts Are Backing It Up

General Electric's plan to strengthen its balance sheet through the $21.4 billion sale of its promising biopharma business is sure to delay the company's health spinoff, but experts say the unit's Chicago headquarters is safe.

GE CEO Lawrence Culp, Jr., explained the decision in a statement, "Today's transaction is a pivotal milestone".

Earlier this month GE also announced plans to shrink the scale of its once-ambitious plan for a headquarters along the Boston waterfront.

The previously planned initial public offering of the health unit, which includes life-sciences operations as well as a sizable business making MRI machines and other equipment, had been slated as a key pillar of Culp's turnaround, alongside the sale of GE's stake in Baker Hughes and the divestiture of GE Transportation. Crucially, GE said that Danaher agreed to assume the pension obligations as part of the deal.

Danaher and General Electric are expecting the deal for GE Biopharma to close during the fourth quarter of 2019. The company has so far lost two-thirds of its value in the last two year.

Now being part of GE Life Sciences, Pharmaceutical Diagnostics, is expected to remain within the GE Healthcare portfolio, which generated almost $17 billion in revenue in 2018. BioPharma is a leading provider of medical instruments, consumables and software that supports research in the pharmaceutical industry. Meanwhile, GE keeps a large proportion of its health assets including the profitable imaging and diagnostics business, which is an important contributor to cash flow.

Claude Puel sacked by Leicester City
The fans had grown discontent with Puel's conservative style of play and now they have a chance to find a new manager. Puel took over from Craig Shakespeare in October 2017 and the club finished ninth in his first season.

"We view the acquisition as highly strategic, as [Danaher] gains access to GE's coveted bioprocessing assets, where GE is the leader in downstream chromatography, highly complementary to Pall's upstream dominant filtration position - not to mention GE's high margin upstream business in cell culture and single use technologies", Brennan wrote.

Retaining full control of GE Healthcare will likely dim the immediate prospect of an IPO for the business, and Culp stressed that refining the overall business is key to his restructuring of the business.

Other good news for Danaher stock is what the deal will do to its earnings. "We are focused on completing the carve out [of the biopharma business] - which is 15 percent of the $20 billion healthcare segment - and focused on managing the remaining core business", he said. "It's unlikely we would do something here in the near to medium term", he said.

To reorganize its business, GE in October replaced John Flannery with Larry Culp as GE's CEO.

GE's decision to sell GE BioPharma to its CEO's old company may raise eyebrows among investors.


  • Labour will back public vote to 'prevent a damaging Tory Brexit'

    Labour will back public vote to 'prevent a damaging Tory Brexit'

    Several MPs have either defected or outlined their intent to resign from May's Conservative Party if the new deal does not match up to the Parliament's expectations.
    Trump To Delay March 1 China Tariffs Amid Trade Talks

    Trump To Delay March 1 China Tariffs Amid Trade Talks

    Yet they also indicate that there are still some differences that need more time to be ironed out. Trump's dramatic decision in July to hike duties on Chinese imports split the US business world.

    Mahershala Ali Dedicates 2019 Oscars Win to His Grandmother

    While he had potential to be a star on the college court, Ali ultimately made it big in Hollywood earning his second Oscar on Sunday night.
  • Newcastle plunge 10-man Huddersfield closer to the drop

    Newcastle plunge 10-man Huddersfield closer to the drop

    The crowd, which has witnessed some terrible afternoon's at St James's Park, did enjoy it. "So it's better that we speak Spanish". James' Park. "But still, he is someone who is working really hard, so I think he can do well".
    Sobel’s WGC-Mexico Matchup Bets: Ride with Rory in the Final Round

    Sobel’s WGC-Mexico Matchup Bets: Ride with Rory in the Final Round

    He followed with a flip wedge to short range for birdie on No. 10 while Johnson was chopping his way to double bogey. But I think this situation is just what he's needed. "Even on 10, actually I had a decent shot at the flag".
    Anthony Davis to appear on LeBron's show

    Anthony Davis to appear on LeBron's show "The Shop"

    Ferry also noted specifically that "league rules made it clear" that Davis has to play as long as he is in New Orleans. Anthony Davis will be part of the New Orleans Pelicans line-up in IN on Friday, head coach Alvin Gentry has confirmed.
  • SanDisk and Micron announce the world’s first 1TB microSD card

    SanDisk and Micron announce the world’s first 1TB microSD card

    This new card allows consumers to transfer files in almost half the time over standard UHS-I microSD cards now on the market. Moreover, the card supports the A2 specification for storing and running Android apps with no speed issues.
    LG’s new flagship smartphone - G8 ThinQ

    LG’s new flagship smartphone - G8 ThinQ

    Just like the G7 ThinQ , the new model gets a dual camera setup at the rear, but it is stacked horizontally instead of vertically. And because 5G is expected to consume more battery , LG has upped the the battery capacity of the device to 4,000 mAh.
    Microsoft workers demand it drop US$480m US Army contract

    Microsoft workers demand it drop US$480m US Army contract

    A group of Microsoft Corp. employees are demanding that the company abandon a $480 million contract with the U.S. The employee protest is the latest manifestation of a growing labor movement in the USA technology industry.
  • Donald Trump Accused Of Kissing Former Campaign Staffer In New Lawsuit

    Donald Trump Accused Of Kissing Former Campaign Staffer In New Lawsuit

    Mr Trump has denied charges by a number of women who said he groped and kissed them over a period of years without permission. Johnson that he would not forget about her, and that he was going to take care of her", Johnson claims in the lawsuit.
    Olivia Colman Wins Best Actress at Oscars 2019!

    Olivia Colman Wins Best Actress at Oscars 2019!

    Colman had the audience hollering at her natural and self-deprecating charisma (she seriously has a future in stand-up). She played Queen Anne in The Favourite , winning the only award for the film at the 91st Academy Awards .
    European Union  chief, British PM May to hold Brexit talks in Egypt

    European Union chief, British PM May to hold Brexit talks in Egypt

    What we are doing as a government is ensuring we are doing everything we can to leave the Europe Union with a deal", she said. She has, however, vowed that the vote will take place by 12 March. "We don't know what amendments are going to be selected".