New Delhi: Healthcare giant Johnson & Johnson is planning to break up into two entities, the company said on Friday.
The firm will separate its consumer health division, which sells Band-Aid and Baby Powder, from its large pharmaceuticals division, the Wall Street Journal reported, citing Chief Executive Officer Alex Gorsky.
The consumer health business of the conglomerate will become a new publicly traded company, new agency Reuters reported, adding that the company is aiming to complete the separation in next 18 to 24 months.
The company also said that it will retain its pharmaceuticals and medical device units that sell drugs such as Darzalex (used for cancer treatment). The Reuters report said the units are expected to generate a revenue of around $77 billion in 2021.
"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," Joaquin Duato, who is set to become J&J's chief executive officer next year, was quoted as saying.
In 2019, J&J rival Pfizer Inc had combined its consumer health unit with GlaxoSmithKline in a joint venture.
J&J's decision to split comes days after US industrial conglomerate General Electric Co announced a similar plan. GE said it would separate into three public companies, and that the decision aimed to simplify business.
On Friday, Japan's Toshiba Corp also shared its plans to break up into three independent companies.