Johnson & Johnson will be split into two companies, by separating the division that sells Band-Aids and the antiseptic Listerine of which manufactures medical equipment and prescription drugs.
The company said that the measure will help each of its new divisions to respond with greater precision and speed to trends in their respective sectors.
The unit that sells drugs and medical equipment will retain the Johnson & Johnson name. This company will sell treatments such as Darzalex, Erleada, Imbruvica, Stelara and Tremfya as well as medical equipment for surgery, orthopedics and ophthalmology. The drug division already manufactures one of the three coronavirus (Covid-19) vaccines authorized in the United States (USA).
The name of the new health consumer goods company, which will handle brands such as Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s y Band-Aid. It is expected to generate revenues of approximately $ 15 billion annually.
“Following a comprehensive study, the board and management team believe that the planned divestiture of the consumer health products business it 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 treatments for people around the world ”CEO Alex Gorsky wrote in a statement.
Few details have been released about the split, which Johnson & Johnson expects to consummate within the next two years if approved by the board.
LJohnson & Johnson shares increased 3% before the market opens.
Voice of America (VOA)