Covidien is looking to sell its pharmaceuticals unit for as much as $4 billion, according to a source familiar with the situation, Reuters has reported.

JPMorgan Chase is advising Covidien on the matter, said the source, who declined to be named because the information was not public.

Covidien may decide to keep the drugs unit if the auction fails to generate high-enough offers, the source said.

The Mansfield, Mass.-based maker of surgical products, drugs and medical supplies had been in talks with another healthcare company for its drugs business, but those talks failed, according to a report by Bloomberg.

In April, Covidien reported a higher-than-expected second-quarter profit, helped by strong demand for its medical devices, and raised its full-year revenue growth forecast.