Johnson & Johnson is splitting into two companies, separating the division that sells Band-Aids and Listerine, from its medical system and prescription drug enterprise.
The corporate promoting pharmaceuticals and medical gadgets will maintain Johnson & Johnson as its title, the corporate mentioned Friday. That firm will embody remedies resembling Darzalex, Erleada, Imbruvica, Stelara and Tremfya in addition to medical system options throughout interventional options, orthopaedics, surgical procedure and imaginative and prescient.
The brand new shopper well being firm will home manufacturers together with Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Support. It’s anticipated to generate income of roughly $15 billion for the yr. A reputation was not disclosed for the brand new firm.
“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,” CEO Alex Gorsky mentioned in a press release.
Particulars are sparse, however Johnson & Johnson expects the split to happen within the subsequent two years, if permitted by the corporate board.
The announcement comes simply days after Basic Electrical mentioned that it plans to split into three separate companies.
Shares of Johnson & Johnson rose greater than 4% earlier than the market opened.