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Johnson & Johnson plans to split into two companies

By AFP
12 November 2021   |   1:07 pm
US pharmaceutical giant Johnson & Johnson on Friday announced plans to break up into two companies, separating its consumer health arm that sells Band-Aids and Tylenol from its pharmaceutical division.

(FILES) In this file photo taken on August 28, 2019 the entry sign to the Johnson & Johnson campus shows their logo in Irvine, California. – Four drugmakers, including Johnson & Johnson, went on trial April 19, 2021 over claims they helped fuel the deadly opioid epidemic in the United States through deceptive marketing that downplayed the risks of addiction. J&J, Teva, Endo and Allergan are accused of trivializing the dangers of long-term use of opioid painkillers to boost sales in a lawsuit filed by several California counties and the city of Oakland. The complaint seeks billions of dollars in damages to abate the public nuisance it says the drugmakers created. (Photo by Mark RALSTON / AFP)

US pharmaceutical giant Johnson & Johnson on Friday announced plans to break up into two companies, separating its consumer health arm that sells Band-Aids and Tylenol from its pharmaceutical division.

Johnson & Johnson said in a statement it will create “two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation.”

It is the third major company to announce plans to break up its business this week after General Electric and Toshiba.

Johnson & Johnson plans to complete the separation in 18-24 months, creating two publicly traded companies.

CEO Alex Gorsky said the decision was made following a “comprehensive review.”

The board and management believe the split 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 healthcare outcomes for people around the world,” he said.

He added that the separation “underscores our focus on delivering industry-leading biopharmaceutical and medical device innovation and technology with the goal of bringing new solutions to market for patients and healthcare systems while creating sustainable value for shareholders.”

The company said its more than 136,000 employees around the world “will remain the backbone of these businesses.”

Earlier this week, General Electric announced plans to split into three publicly traded companies.

Japan’s Toshiba said Friday it was splitting into three companies following a campaign by investors to boost the group’s shares after a period of upheaval.

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