By Associated Press
November 12, 2021
The institution selling medicine drugs and aesculapian devices — J&J's 2 largest businesses — volition support the Johnson & Johnson name.
Johnson & Johnson is splitting into 2 companies, peeling disconnected the part selling Band-Aids and Listerine from its aesculapian instrumentality and medicine cause business.
The world's biggest shaper of wellness attraction products, founded successful 1886, said Friday the determination volition assistance amended the absorption and velocity of each institution to code trends successful their antithetic industries.
The institution selling medicine drugs and aesculapian devices — J&J's 2 largest businesses — volition support the Johnson & Johnson name. That institution sells treatments specified arsenic Darzalex, Erleada, Imbruvica, Stelara and Tremfya arsenic good arsenic aesculapian devices for orthopedics and surgery.
The pharmaceutical limb besides makes 1 of 3 COVID-19 vaccines presently approved for usage successful the United States.
The caller user wellness company, which has yet to beryllium named, volition location brands including Neutrogena, Aveeno, Tylenol, Listerine, Johnson's and Band-Aid.
"Following a broad review, the committee and absorption squad judge that the planned separation of the user wellness concern is the champion mode to accelerate our efforts to service patients, consumers, and healthcare professionals, make opportunities for our talented planetary team, thrust profitable growth, and — astir importantly — amended healthcare outcomes for radical astir the world," CEO Alex Gorsky said successful a statement.
Johnson & Johnson expects the divided to hap successful the adjacent 2 years, if approved by the company's committee of directors.
Pharmaceuticals and aesculapian devices pulled successful a combined $19.6 cardinal successful gross successful the company's precocious completed 3rd quarter, which turned retired amended than analysts expected. Consumer wellness brought successful $3.7 billion.
J&J is opening its divided arsenic it besides undergoes a enactment transition. The institution said successful August that Gorsky volition measurement down and beryllium replaced successful January by longtime institution enforcement Joaquin Duato.
The divided besides comes arsenic J&J deals with disapproval from immoderate Democrats successful Congress implicit different firm move. J&J is facing thousands of lawsuits claiming that its talc-based babe powder, which it has stopped selling successful the U.S. and Canada, caused ovarian cancer.
U.S. Senators Dick Durbin of Illinois and Elizabeth Warren of Massachusetts, among others, precocious sent a missive to the institution asking for much accusation astir a recently created subsidiary that filed for Chapter 11 bankruptcy protection.
The senators successful a Nov. 10 missive called the determination a "corporate ammunition game" that would shield the institution from liability successful those cases.
J&J's announcement Friday comes conscionable days aft General Electric said that it plans to divided into 3 abstracted companies.
It besides follows akin moves by different ample wellness attraction firms who sought to constrictive their focus. Rival drugmaker Pfizer Inc. spun disconnected its user wellness merchandise concern successful 2019 to assistance make a associated task with GlaxoSmithKline.
Another drugmaker, Merck & Co. Inc., slimmed down successful June with a spinoff that combined its Organon women's wellness portion with its businesses selling biosimilars, oregon near-copies of pricey biologic drugs, and off-patent erstwhile blockbusters similar respiratory drugs Singulair and Nasonex.
Shares of New Brunswick, New Jersey-based Johnson & Johnson climbed much than 2% earlier the marketplace opened. The institution has been a constituent of the Dow Jones Industrial Average since 1997.
Additional reporting by The Associated Press.