Johnson & Johnson is splitting into two companies, separating the division that sells Band-Aids and Listerine, from its medical gadget and prescription drug enterprise.
The corporate promoting prescribed drugs and medical units will preserve Johnson & Johnson as its identify, the corporate said Friday. The brand new client well being firm will home manufacturers together with Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Support. A reputation was not disclosed for the brand new firm.
Particulars are sparse, however the firm count on the split to happen within the subsequent two years.
“We believe that the new Johnson & Johnson and the new consumer health company would each be able to more effectively allocate resources to deliver for patients and consumers, drive growth and unlock significant value,” J&J CEO Alex Gorsky stated in an announcement.
Gorsky will hand over the reins as chief govt to Joaquin Duato, presently vice chairman of the corporate’s govt committee, on January 3, 2022, J&J stated. The split is predicted to be accomplished by fall of 2023.
The corporate was fashioned by brothers Robert Wooden Johnson, Edward Mead Johnson and James Wooden Johnson in 1886 as a maker of surgical provides.
The announcement comes simply days after Common Electrical stated that it plans to.
Shares of Johnson & Johnson rose 3% earlier than the market opened.