Johnson & Johnson (NYSE: JNJ) announced this morning the intent to separate its consumer health business into a new independent, publicly-traded company. The multinational corporation intends to focus on as a healthcare company.
“This planned transaction would create two businesses that are each financially strong and leaders in their respective industries,” said incoming Johnson & Johnson CEO Joaquin Duato. “We believe that the new Johnson & Johnson and the new consumer health company would each be able to more effectively allocate resources to deliver for patients and consumers, drive growth and unlock significant value.”
The “new” Johnson & Johnson will maintain and focus on its pharmaceutical and medical device divisions. The corporate slice is expected to generate revenue of approximately US$77 billion in 2021.
On the other hand, the new consumer health company will handle the self-care, skin health, and essential health products, including popular brands like Neutrogena, Tylenol, Listerine, and Johnson’s. The division is projected to earn annual revenue of approximately US$15 billion in 2021.
The conglomerate is looking at effecting the completion of the separation in 18 to 24 months. The new company’s management and public trading details are yet to be disclosed.
Johnson & Johnson last traded at US$163.06 on the NYSE.
Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
