US multinational corporation Johnson & Johnson on Friday announced its plans to split into two companies to separate their consumer and pharmaceutical products.
"Johnson & Johnson today announced its intent to separate the Company's Consumer Health business, creating a new publicly traded company. The planned 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," the company said in a statement.
The company statement said that one firm will be focused on household products, including Neutrogena, AVEENO, Tylenol, Listerine, JOHNSON's, and BAND-AID.
Meanwhile, the other company will develop prescription drugs and medical division, including the one that made a COVID-19 vaccine. J&J promised that the New Consumer Health Company would be a leading global consumer health company.
"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," Alex Gorsky, who will serve as Executive Chairman of J&J, said.
Joaquin Duato, Vice Chairman of the Executive Committee said this planned transaction would create two businesses that are each financially strong and leaders in their respective industries. "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 American corporation plans its separation in 18 to 24 months.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor