It is the third major company to announce plans to break up its business this week after General Electric and Toshiba.
The spin-off will create "two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation," Johnson & Johnson said in a statement on Friday. Alex Gorsky, CEO of the 135-year-old company, said the decision to create a new consumer health business was made following a "comprehensive review."
"This planned transaction would create two businesses that are each financially strong and leaders in their respective industries," Duato said.
The name of one company will be Johnsons, and the name of another will be Johnson.
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