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Johnson & Johnson is splitting into two companies, separating the division that sells Band-Aids and Listerine, from its medical device and prescription drug business.
The company selling prescription drugs and medical devices will keep Johnson & Johnson as its name, the company said Friday. That company will include treatments such as Darzalex, Erleada, Imbruvica, Stelara and Tremfya as well as medical device solutions across interventional solutions, orthopaedics, surgery and vision.
The new consumer health company will house brands including Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Aid. It is expected to generate revenue of approximately $15 billion for the year. A name was not disclosed for the new company.
FILE - In this photo illustration, a Johnson & Johnson logo is seen displayed on mobile phone and pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
"Following a comprehensive review, the board and management team believe that the planned separation of the consumer health business 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," CEO Alex Gorsky said in a statement.
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Details are sparse, but Johnson & Johnson expects the split to occur in the next two years if approved by the company board.
The announcement comes just days after General Electric said that it plans to split into three separate companies.
Shares of Johnson & Johnson rose more than 4% before the market opened.
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