Johnson & Johnson Will Split Into Two Companies, Aiming for Faster Growth

Johnson & Johnson is peeling off a consumer health business that helped it become the world’s biggest health care products maker. The company said Friday that it will separate its segment that sells Band-Aids, Listerine and over-the-counter medicines like Tylenol from its pharmaceutical and medical device business. Company leaders told analysts that the split into two publicly traded companies will make each business more nimble in adapting to their respective markets. It also allows for a more precise allocation of capital. CEO Alex Gorsky said that while the company’s broad focus has worked in the past, the split addresses segments that “have evolved as fundamentally different businesses.” [time-brightcove not-tgx=”true”] “We’ve seen a significant evolution in these markets, particularly on the consumer side,” Gorsky said, referring in part to a shift toward online shopping that accelerated during the COVID-19 pandemic. The segment selling prescription drugs and medical devices — J&J’s two largest businesses — will keep the Johnson & Johnson name. Its products include the cancer treatment Darzalex, a COVID-19 vaccine and medical devices for orthopedics and surgery. The new consumer health company has yet to be named. It will house brands including Neutrogena, Aveeno, and the iconic Band-Aids, which a company employee created more than 100 years ago. Pharmaceuticals and medical devices pulled...
Source: TIME: Health - Category: Consumer Health News Authors: Tags: Uncategorized Companies wire Source Type: news