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Something different than penate cream: Johnson & Johnson also has the Janssen vaccine in its broad product portfolio
Photo: Dirk Waem / BELGA / AFP
The US pharmaceutical and consumer goods group Johnson & Johnson (J&J) plans to split into two listed companies.
The group wants to separate its consumer goods division, in which, among other things, plasters and baby powder are produced, in the next 18 to 24 months, said CEO Alex Gorsky the "Wall Street Journal".
What remains is the pharmaceutical division, including prescription drugs and medical technology.
That is the best way to ensure sustainable growth in the long term, said Gorsky.
The group confirmed the plan in a message.
The share rose by 4 percent before the trading day.
The group decided to do so because the two parts of the company had diverged in recent years, said Gorsky.
The pharmaceutical division is by far the larger group division.
The company put the drug and medical technology business at expected sales of US $ 77 billion this year.
One of the growth drivers is the Group's corona vaccine.
Consumer goods are the smaller division
The consumer goods division, which also includes over-the-counter medicines, is heading for around $ 15 billion in revenue in 2021.
This primarily includes skin care and cosmetic products, mouthwashes, shampoo and hygiene products.
Johnson & Johnson offers brands such as Listerine, Bebe, Dolormin and Penaten, among others.
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The new organization of the consumer goods group should be in place by the end of 2022.
J&J also has to speak to employee representatives about this, and the authorities also have to give their consent.
According to the group's ideas, the separation should be carried out via the capital market and thus remain tax-free.
Splitting is in vogue
Recently, other large corporations had announced their split, including the US industrial giant General Electric and the Japanese electronics group Toshiba.
In Germany, the Siemens group had largely split up into individual business areas in recent years.
In many cases, large investors exert pressure on conglomerates because they consider the overlap and synergies within the corporations to be low.
Investors hope that such splits will enable them to invest in different business models in a more targeted manner.
mamk / dpa