New York: As Johnson & Johnson’s pharmaceutical giant on Friday announced plans to break into two companies, separating the health arm of consumers who sell band-aids and tylenol from the pharmaceutical division.
Johnson & Johnson said in a statement it would create “two global leaders who were better positioned to provide better health outcomes for patients and consumers through innovation.” It is a third big company announcing plans to break down their business this week after General Electric and Toshiba.
Johnson & Johnson plans to complete the separation in 18-24 months, creating two publicly traded public companies.
CEO Alex Gorsky said the decision was made to follow “a comprehensive review.” The Board and Management believes split is “the best way to accelerate our efforts to serve patients, consumers, and health care professionals, creating opportunities for our talented global team, encouraging profitable growth, and most importantly – improve the results of health care for people -people around the world, “he said.
He added that the separation “underlines our focus on providing innovation and leading biopharmaceutical and medical technologies in the industry with the aim of bringing new solutions to market for patients and health care systems, while creating sustainable value for shareholders.” The company said more than 136,000 employees worldwide “will remain the backbone of this business.” Earlier this week, General Electric announced plans to divide into three public companies traded.
Toshiba Japan said on Friday it divided into three companies after the campaign by investors to increase group shares after periods of upheaval.