Chinese bidders are reportedly circling Johnson & Johnson (NYSE:JNJ)'s diabetes care unit, in a deal that could fetch up to $4 billion. New Brunswick, N.J.-based J&J said in January last year it was evaluating options for its diabetes care companies, specifically LifeScan, Animas, and Calibra Medical. One option was a sale of the business, it said.

Among the potential bidders is a consortium being formed by Sinocare Inc. (SZSE:300298), which develops and manufactures blood sugar monitoring systems, and China Jianyin Investment Corporation (JIC), a unit of sovereign wealth fund China Investment Corporation. The group has hired an advisor to work on a bid, according to two sources familiar with the development. "The evaluation of potential strategic options for LifeScan and Calibra Medical Inc. is ongoing and we do not have an announcement regarding these businesses at this time," J&J said in a statement in response to Reuters request for comment.