American multinational corporation Johnson & Johnson announced on Friday plans to split into two companies to separate their consumer and pharmaceutical products.
"Johnson & Johnson (the "Company") (NYSE: JNJ) today announced its intent to separate the Company’s Consumer Health business, creating a new publicly traded company. The planned separation would create two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth", the statement said.
One company will be focused on household products, including Neutrogena, AVEENO, Tylenol, Listerine, JOHNSON’s, and BAND-AID, while the other one will develop prescription drugs and medical division, including the one that made a COVID-19 vaccine.
J&J vowed that the New Consumer Health Company would be a leading global consumer health company.
"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," Alex Gorsky, who will serve as Executive Chairman of J&J, said.
The New Jersey-based corporation, which was founded in the 1880s, plans its separation in 18 to 24 months.