Johnson & Johnson to split into separate companies
Johnson & Johnson shares jumped after the maker of cancer treatments, mouthwash and Tylenol said it will break itself up into two public companies, one focused on drugs and medical devices, and the other on consumer products, reported Bloomberg News (12 November 2021). The healthcare giant will hive off its consumer division in 18 to 24 months. The company did not outline financial terms of the proposed split in detail, though it said the transaction would be tax-free and that it expected to continue to pay dividends at least at current levels. J&J’s pharmaceutical arm has long been its strongest performer. The drug unit generated 55% of the company’s sales in 2020, with another 28% coming from the medical device unit, and 17 percent from the consumer arm.