Johnson & Johnson, a vaccine manufacturer, is dividing into two firms

Key sentence:

• Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Aid will be part of the new consumer health conglomerate.
• Johnson & Johnson assumes the split within the next two years if the company’s board of directors approves it.

Johnson & Johnson is dividing into two businesses, selling Band-Aids and Listerine and selling medical devices and prescription drugs.

According to the corporation, the change would assist improve each company’s concentration and speed in responding to trends in their respective areas.

The company that sells prescription pharmaceuticals and medical devices will continue to be known as Johnson & Johnson, the company announced on Friday. 

Darzalex, Erleada, Imbruvica, Stelara, and Tremfya will be among the treatments offered by that company, and medical device solutions in interventional solutions, orthopaedics, surgery, and vision.

One of three COVID-19 vaccines presently approved for usage in the United States is manufactured by the prescription medication division.

Also read: The Winnipeg Jets beat the Sharks to get back in the win column

Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Aid will be part of the new consumer health conglomerate. It is estimated to bring in around $15 billion in revenue for the year. The new company’s name has yet to be revealed.

“Following a thorough review, the board and management team believe that separating the consumer health business is the best method to speed up our efforts to serve patients, consumers, as well as healthcare experts, create opportunities for our talented international team, drive profitable growth, and – most importantly – improve healthcare outcomes for people all over the world,” CEO Alex Gorsky said in a statement.

Details are scarce, but Johnson & Johnson anticipates the split within the next two years if the company’s board of directors approves it.

The news comes just days after GE announced its intention to split into three businesses.

Pfizer Inc., a competitor, split off its consumer health product division in 2019 to help form a joint venture with GlaxoSmithKline.

In June, Merck & Co. Inc. reduced with a spinoff that united its Organon women’s health unit with its biosimilars (near-copies of expensive biologic pharmaceuticals) and off-patent former bestsellers, including respiratory treatments Singulair and Nasonex.

Source: Global News

Get Canada and New Brunswick News’s top News, Market news, and other worldwide news only on New Brunswick Tribune.