Johnson & Johnson announced on November 12, 2021, that it is planning to separate its Consumer Health Business and create a new publicly traded Consumer Health Company. The press release states that the planned separation is expected to provide enhanced operational performance, drive growth, and unlock significant value.  As the press release states:

This planned transaction would create two businesses that are each financially strong and leaders in their respective industries. 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. Importantly, the new Johnson & Johnson and the New Consumer Health Company would remain mission driven companies with exceptional brands, commitments to innovation, and remarkable talent. Each company would carry on the Johnson & Johnson legacy of putting the needs and well-being of the people we serve first.

According to its press release, the new Consumer Health Company will have a portfolio of brands and companies such as Neutrogena, AVEENO®, Tylenol®, Listerine®, JOHNSON’s®, BAND-AID®, and others.  The new Johnson & Johnson will maintain its pharmaceutical capabilities (including DARZALEX, ERLEADA, IMBRUVICA, STELARA and TREMFYA) and medical device capabilities in interventional solutions, orthopaedics, surgery, and vision.

According to the press release, the new Johnson & Johnson expects to generate revenue of approximately $77 billion USD while the new Consumer Health Company is expected to generate revenue of approximately $15 billion USD in full year 2021. The planned separation is to be completed in 18 to 24 months.

Johnson & Johnson’s press release is available here.