News Update

FMCG Giant Johnson and Johnson to split into 2 companies

• ByTejika Bajaj     |    November 15, 2021

Johnson and Johnson has announced its plan to split the existing companies into two independent companies, spinning off its consumer health division into a separate publicly listed company.

The new Johnson & Johnson Company would focus more on the production and sale of Covid-19 vaccine along with other drugs, thus delving into the pharmaceutical market.

On the other hand, the consumer health division would deal with personal healthcare products like Listerine. The New Consumer Health Company would have four $1 billion megabrands and 20 brands worth over $150 million including household names like Listerine, Band-Aid, Neutrogena and Aveeno.

The Chairman and CEO of Johnson & Johnson, Alex Gorsky, made a statement about the recent split saying, “I believe spinning off 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.”

By the end of the financial year 2021, the consumer arm of the company is likely to bring $150 million in revenue whereas the pharmaceutical arm is likely to bring revenue of $77 million. This announcement comes in the wake of similar announcements made by industrial conglomerates like Toshiba and General Electrics.  

The current chairman of Johnson & Johnson, Alex Gorsky, would take on the role of CEO of the new Johnson & Johnson whereas, the current Vice President of the group Joaquin Duato would led the Consumer Health Company with effect from 3rd January, 2022.

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