To divide… To better reign?
US pharmaceutical giant Johnson & Johnson (J&J) announced on Friday that it would separate its hygiene products and non-prescription drugs from the rest of its operations to create two listed companies.
The title of J & J already climbed more than 3.5% on Wall Street in electronic exchanges after this announcement and before the opening of the New York market.
Johnson & Johnson announces plans to accelerate innovation, serve patients and consumers and unlock value through intent to separate consumer health business.
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- Johnson & Johnson (@JNJNews) November 12, 2021
“After a comprehensive review, the Board of Directors and management felt that the planned separation of the
Consumer Health
division
is the best way to accelerate our efforts to serve patients, consumers and healthcare professionals, ”J&J boss Alex Gorsky said in a statement.
The “consumer health” branch separated from the rest
The Consumer Health branch markets consumer products such as Band-Aid dressings, Neutrogena skin creams, baby talcum powder or Tylenol, a drug used as a pain reliever.
It generated third-quarter revenue of $ 3.7 billion, or nearly 16% of J & J's total revenue.
The group's other activities, namely the production and sale of medical equipment, prescription drugs and vaccines, in particular the single-dose serum against Covid-19, will form the second company.
These divisions generated nearly $ 20 billion in revenue from July to September.
The announcement of the J&J split - which should be completed within 18 to 24 months - comes just days after that of another American giant, the conglomerate General Electric, which has planned to split its activities into three separate businesses.
