Johnson & Johnson to spin off consumer health business

Johnson & Johnson announced plans on Friday to separate its consumer health segment from the pharmaceuticals and medical device business, creating a new publicly traded company.

The separation would create "two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth," it said.

J&J is aiming to complete the separation in 18 to 24 months, subject to the satisfaction of certain conditions.

Alex Gorsky will serve as executive chairman of Johnson & Johnson and transition the chief executive officer role to Joaquin Duato, who is currently vice chairman of the Executive Committee, effective January 2022. Duato would continue to lead the new Johnson & Johnson following completion of the planned separation.

Gorsky said: "For the new Johnson & Johnson, this planned 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.

"We believe that the new consumer health company would be a global leader across attractive and growing consumer health categories, and a streamlined and targeted corporate structure would provide it with the agility and flexibility to grow its iconic portfolio of brands and innovate new products. We are committed to the success of each organization, as well as our company’s more than 136,000 employees around the globe, who will remain the backbone of these businesses."