NEW BRUNSWICK, N.J. — Johnson & Johnson announced Friday that it intends to split itself into two companies.
J&J said it plans to do this by creating a new publicly-traded company centered on consumer health, while its existing business concentrates on health care under the same name.
Following the separation, J&J says it will remain focused on the research and development of its pharmaceuticals and medical devices.
Starting in January, Alex Gorsky will serve as Executive Chairman of Johnson & Johnson and transition the CEO role to Joaquin Duato, who is currently Vice Chairman of the company’s Executive Committee.
As for the new consumer health company, J&J says it will focus on selling its well-known products like Neutrogena, AVEENO, Tylenol, Listerine, and BAND-AID.
That company’s board of directors and executive leadership would be determined and announced in the future as the separation process progresses.
“The planned organizational design for the New Consumer Health Company is expected to be completed by the end of 2022 and will be subject to legal requirements including consultation with works councils and employee representatives, as required,” said J&J.
J&J believes the planned separation will create value for its stakeholders in a number of ways, including by increasing management focus and resources to address differing industry needs, and providing each company with compelling financial profiles that more accurately reflect their strength and opportunities.
“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 health care outcomes for people around the world,” said Gorsky.
J&J's announcement comes just days after General Electric said it plans to split itself into three separate companies. It also comes at a time when the company's name is in the news a lot because of its COVID-19 vaccine.