American icon Johnson &Johnson today announced that it will separate its consumer health business from its high-end pharmaceutical and medical device business.
“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,” said CEO Alex Gorsky in a statement.
Johnson & Johnson’s consumer health business is expected to generate $15 billion in revenue in 2021 and manages a portfolio of iconic brands such as Tylenol. Listerine and Band-Aid.
The pharmaceutical and medical devices segments of the conglomerate are expected to generate $77 billion in 2021.
“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,” said Joaquin Duato, who will become Johnson & Johnson’s CEO in January 2022, as Gorsky transitions to company Executive Chairman.
The company expects to complete the separation of the new consumer health company in 18 to 24 months.