Johnson & Johnson (JNJ) - Get Johnson & Johnson Report is splitting into two publicly traded companies. In an announcement Friday, the world's largest health-products company said it’s splitting its consumer health division from its its pharmaceuticals and medical devices business.
The company says the planned split “would create two businesses that are each financially strong and leaders in their respective field.”
"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," said Joaquin Duato, the incoming CEO of the company.
Duato is assuming his role on January 3.
The company expects the new consumer health company to complete its separation within 2 years.
On Tuesday, General Electric (GE) - Get General Electric Company Report also announced its plan to split into three separate companies. The U.S. industrial giant said it will form three companies focused on aviation, healthcare and energy.