The talks are in initial stages, Reuters reported, citing three people familiar with the matter.

The financial details of the deal are not yet known either.

Earlier this year, the Centers for Medicare & Medicaid Services said it was reducing the reimbursement for diabetes test supplies by up to 72%, making it further tough for companies to remain profitable. This plan would be effective from 1 July.

Last year, Bayer, a Germany based drug maker, planned to sell its blood glucose meter business for around $1.5bn.

Currently, there are only a few companies that sell blood glucose meters including Johnson & Johnson.