US pharmaceutical giant Johnson & Johnson to split into two companies

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

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

It is the third major company to announce plans to split 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 after a “comprehensive review.”

The board and management believe that the division 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. health care outcomes for people. ” all over 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 worldwide “will continue to be the backbone of these businesses.”

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

Japan’s Toshiba said on Friday it was splitting into three companies following an investor drive to boost the group’s shares after a period of turmoil.