The American pharmaceutical giant Johnson & Johnson (J&J) announced today that it is going to separate the consumer health products from the drugs for the rest of their companies in order to create two listed companies.
The J8J stock gained more than 3.5% on Wall Street in electronic trading after the announcement and before the opening of the New York market.
“After a full review, the group’s board and management considered that the planned separation of the ‘Consumer Health’ department is the best way to expedite our efforts to serve patients, consumers and professionals. “Alex Gorsky, head of J&J, said in a statement.
The “Consumer Health” section sells more widely used products such as Band-Aid bandages, Neutrogena skin creams, talcum powder for babies or Tylenol, a drug used as an analgesic. It had a turnover of $ 3.7 billion in the third quarter, almost 16% of J&J’s total revenue.
The rest of the group’s activities, such as the production and sale of medical equipment, prescription drugs and vaccines, mainly the single-dose Covid-19, will form the second company. These divisions generated revenue of nearly $ 20 billion from July to September.
Joaquin Duato, vice president of J&J ‘s executive committee, who will become the group’ s general manager from January, will remain general manager of this new J&J after the merger is completed. Gorski will take over as executive chairman of the current J&J board to ensure transition until Duo arrives.
J&J expects to complete its separation in 18 to 24 months.
The announcement of the separation of J&J is made just a few days after that of another American giant, the company General Electric, which decided to split its activities into three separate companies.
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