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Thursday, May 26, 2022

Johnson & Johnson To Break Up Into Two Companies

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Johnson & Johnson is to break up into two companies, it confirms on Friday.

This move will separate the consumer health division that sells Band-Aids and Baby Powder from it’s large prescription drugs and medical device company.

The company said this move will help improve the focus and speed of each company to address trends in their different companies. The prescription drug arm of the company makes one of the three Covid-19 vaccines currently approved for use in the US and is set to keep the Johnson & Johnson name whilst the other company is yet to disclose it’s new name.

The new consumer health unit will house brands including Listerine, Aveeno, Neutrogena, Band-Aid and Johnson’s. It is expected to generate 15 billion dollars (£11 billion) for the year.

“Following a comprehensive review, the board and management team believe that the planned separation of the consumer health business is the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, drive profitable growth, and – most importantly – improve healthcare outcomes for people around the world,” chief executive Alex Gorsky said in a statement.

Full details have not yet been disclosed but Johnson & Johnson expects the split to occur in the next two years if approved by the company board.

Shares of Johnson & Johnson rose 3% before the market opened.

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