The corporate, which traces its roots again to 1886, will break into two: One firm will deal with client well being merchandise clients should buy over-the-counter, together with Benadryl, Band-Aids and Tylenol. The opposite enterprise will promote prescribed drugs and medical units. Each will likely be publicly traded corporations.
The separation is aimed toward creating “two international leaders which might be higher positioned to ship improved well being outcomes for sufferers and shoppers via innovation,” the corporate mentioned in a press release. Management and the brand new title of the consumer-focused division have not but been introduced.
Johnson & Johnson CEO Alex Gorsky mentioned the modifications is the “greatest method to speed up our efforts to serve sufferers, shoppers, and healthcare professionals, create alternatives for our proficient international staff, drive worthwhile development, and — most significantly — enhance healthcare outcomes for individuals around the globe.”
Gorsky introduced in August that he will likely be changed as CEO with Joaquin Duato early subsequent 12 months. Gorsky, who has served as CEO and chairman since 2012, will change into govt chairman on January 3, 2022.
The pharmaceutical enterprise unit, which makes a Covid-19 vaccine and can preserve the Johnson & Johnson title, will stay one of many world’s largest makers of medicine and well being merchandise. It makes numerous medical units and medicines, together with remedies for cancers and infectious illnesses.
The extra well-known consumer-facing firm, which rakes in $15 billion in yearly gross sales, additionally manufactures Motrin, Zyrtec, Nicorette and Sudafed.
