AstraZeneca confirms eyeing Astra Tech spin-off

JP Morgan hired to help with strategic review of business

* Source had previously said plan to sell unit for $2 bln

* U.S., European firms seen potential buyers of medtech unit

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LONDON, Nov 19 (Reuters) - AstraZeneca (AZN.L) confirmed on Friday it was considering spinning off Astra Tech and had hired JP Morgan Chase (JPM.N) to help with a strategic review of the dental implants and medical devices unit.

A source familiar with the situation said earlier this week that the Anglo-Swedish drugmaker was looking to sell the Swedish-based business for some $2 billion after hiring the bank as adviser. [ID:nN15278762]

"AstraZeneca continues to evaluate all alternatives for value maximisation from this business and any final decision will only be made when the results of the review have concluded," the company said in a brief statement.

The Astra Tech business could be of interest to U.S. companies such as privately held Biomet, Medtronic (MDT.N), 3M (MMM.N), Danaher (DHR.N) and Dentsply International (XRAY.O), as well as private equity firms, according to industry analysts.

In Europe, it is also likely to be looked at by Swiss dental implant firms Nobel Biocare (NOBN.VX) and Straumann (STMN.S). (Reporting by Ben Hirschler, editing by Kate Kelland)

UPDATE 1-AstraZeneca confirms eyeing Astra Tech spin-off: "AstraZeneca confirms eyeing Astra Tech spin-off"

Nobel Biocare Q3 misses poll, still losing to rivals

* Nobel Biocare swings to Q3 net loss 17.8 mln euros
* Avge fcast in Reuters poll for 16.2 mln euro loss

* Sees market improving further 2011

* Analyst sceptical about company's long-term prospects

* Shares rise 0.6 pct after early tumble to 7-yr low

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By Katie Reid

ZURICH, Nov 3 (Reuters) - Dental implant maker Nobel Biocare (NOBN.VX) swung to a wider-than-expected third-quarter net loss due to losing more market share as patients remained wary about its expensive treatments.

The Swiss group tried to strike an upbeat note on Wednesday, saying it expected to return to growth next year and to catch market growth in the next six to nine months because the industry should improve further.

But Vontobel analyst Christoph Gubler said attempts to stop losing market share were hitting gross and operating margins.

"This puts into question the long-term investment story, which is based on volume growth and operating leverage leading to margin expansion," he said.

At 0936 GMT, Nobel Biocare shares, down 54 percent this year, were trading 0.6 percent higher after falling more than 4 percent earlier in the session to their lowest since 2003.

"All in all, bad news should now be priced in and I wouldn't be surprised to see higher prices during today's session and the coming month," one Zurich-based trader said.

Investors have grown impatient with Nobel Biocare's failure to deliver and Chief Executive Domenico Scala is under pressure to prove he deserves to keep his job after it relinquished top spot in the implant market this year. [ID:nLDE67O072]

Fresh worries about the health of the world's economy have also dented hopes of a recovery in the industry, hit hard during the downturn as patients put off non-urgent treatments that are generally not reimbursed by insurers.

Nobel Biocare posted a third-quarter net loss of 17.8 million euros ($24.82 million), trailing the average estimate in a Reuters poll [ID:nLDE69S1DK]. That compares with a 33.6 million euro net profit in the same period in 2009.

The group said it was hopeful it would return to growth in 2011 after seeing stability in markets in the last few quarters. It expects the dental implant market to grow 1 percent in 2010 and pick up in 2011.

Straumann (STMN.S), which replaced Nobel Biocare in top spot, also sees low single-digit sector growth this year and has said this could improve in 2011, but it cautioned consumer confidence remained fragile. [ID:nLR409944]

Nobel Biocare is trading at around 15 times 2011 earnings, at a discount to Straumann, which trades at around 20 times. ($1=.7172 Euro) (Editing by David Hulmes)





UPDATE 2-Nobel Biocare Q3 misses poll, still losing to rivals: "Nobel Biocare Q3 misses poll, still losing to rivals"