Aug 5 (Reuters) – Solventum, one of the largest providers of hospital consumables and sterilization devices, said on Wednesday it is planning to separate its health information systems business as part of its ongoing turnaround strategy.
The company also raised its full-year forecast for organic sales and adjusted profit, driven by strong demand for its wound care and sterilization products.
Here are some details:
• After divesting its health information systems business, which provides healthcare systems software, Solventum will be left with its MedSurg and Dental Solutions businesses, becoming a more focused medical technology company.
• The plan comes after Solventum faced renewed pressure from Nelson Peltz’s Trian Fund Management in early May to manage costs and hive off non-core businesses.
• The business to be separated contributed to 16.3% of Solventum’s total sales in 2025.
• “We believe separation can unlock value by enabling both businesses to pursue distinct growth agendas, accelerate innovation and realize their full potential,” CEO Bryan Hanson said in a statement.
• The company raised its forecast for 2026 organic sales growth to 2.5% to 3%, from 2% to 3% earlier.
• It expects full-year adjusted profit per share of $7.10 to $7.20, above its previous forecast of $6.40 to $6.60.
• The Minnesota-based company posted second-quarter adjusted net income of $2.55 per share, higher than analysts’ average estimates of $1.91 per share, per LSEG data.
• Its revenue of $2.21 billion also beat analyst estimates of $2.16 billion.
(Reporting by Unnamalai L in Bengaluru; Editing by Savio D’Souza)
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