New Delhi: Pharmaceutical and medical device manufacturer, Johnson & Johnson is going to split into two separate companies, reported AP. The segment selling Band-Aids, Listerine and over-the-counter medicines like Tylenol will be separated from the segment dealing with pharmaceutical and medical devices, said the company on Friday.
As reported by AP, the company said that the bifurcation will help in making both the business more nimble in their respective markets. The other company to be formed will be separately publicly traded
The segment dealing in prescription drugs and medical devices, the two major businesses of the company, will retain the name of Johsnon & Johnson. The same company will also continue dealing with its cancer treatment Darzalex and a Covid-19 vaccine.
Alex Gorsky, Chief Executive Officer of Johnson and Johnson said that the split addresses the segment that “have evolved as fundamentally different businesses.” Referring to a shift towards online shopping during the Covid-19 pandemic Gorsky said, “We’ve seen a significant evolution in these markets, particularly on the consumer side.”
The company currently faces numerous lawsuits claiming that one of its consumer-based products, talc-based baby powder, is harmful and causes ovarian cancer and mesothelioma. But the company said that splitting of the company was “separate and distinct” from those lawsuits.
While the company said that the split was aimed towards faster growth, a business professor at the University of Michigan, Erik Gordon was of the view that the two separate companies would not turn out to be increasingly focused or nimble. He said that the company was already decentralised.
Johnson & Johnson was founded in January 1886 in New Brunswick, New Jersey, United States, where it is currently headquartered.