Johnson & Johnson Will Split Into 2 Companies
The move will separate Johnson & Johnson's consumer health brands from the rest of the company's offerings.
By Entrepreneur Staff •
Johnson & Johnson will soon split into two publicly-traded companies, it announced on Friday.
The move will separate Johnson & Johnson's consumer health brands from the rest of the company's offerings, according to a release. That means brands like Aveeno, Neutrogena, Tylenol and Band-Aid will fall under the new, yet-unnamed company.
The company's pharmaceuticals and medical devices will still be under the Johnson & Johnson-branded umbrella. Darzalex, Erleada, Tremfya and more will remain available through the first company, as will the various devices produced for use across various medical disciplines.
CEO Alex Gorsky will serve as executive chairman of Johnson & Johnson. The CEO role will transfer to current vice chairman of the company's executive committee, Joaquin Duato, on Jan. 3, 2022.
The board of directors and executive leadership of the new consumer health company will be determined and announced "in due course as the planned separation process progresses."
In a Friday statement, Gorsky said, "Throughout our storied history, Johnson & Johnson has demonstrated that we can deliver results that benefit all our stakeholders, and we must continually be evolving our business to provide value today, tomorrow and in the decades ahead. 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."
The split is expected in the next two years if the company's board approves it.
