J&J plans to split into two companies, separating consumer products and pharmaceutical businesses

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'We think this is a bold move.' CEO Alex Gorsky breaks down J&J's plans to split into 2 public companies.

Duato is taking over the role in January as previously planned. Those segments are expected to generate roughly $77 billion in revenue while the consumer products division is forecast to sell about $15 billion in products this year, the company said.

Its yet-to-be-named consumer products company will also inherit litigation stemming from lawsuits over claims that its Johnson's Baby Powder causes cancer, allegations the company has vehemently denied. Gorsky said the consumer division has four brands alone that generate more than $1 billion in annual sales. By separating it, the company can provide "even more agility" and "a better opportunity for capital allocation," he said.J&J was already undergoing a major transition with Gorsky's departure as CEO. He will remain on as executive chairman of the new J&J, the company said.

Additionally, the company said it planned to keep its total dividend "at least at the same level" following the change. J&J currently sports a dividend yield of about 2.6%.said it plans to split into three separate publicly traded companies, spinning out its medical and energy units from its aviation unit.

 

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J&J will become J1 and J2

So, just Johnson... and Johnson?

Bold indeed. let the smaller company go bankrupt from the Talc lawsuit in order for the bigger to survive.

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Johnson & Johnson Shares Jump In Premarket As Firm Plans To Split Into Two Separate CompaniesI am a London-based reporter for Forbes covering breaking news. Previously, I have worked as a reporter for a specialist legal publication covering big data and as a freelance journalist and policy analyst covering science, tech and health. I have a master’s degree in Biological Natural Sciences and a master’s degree in the History and Philosophy of Science from the University of Cambridge. Follow me on Twitter theroberthart or email me at rhartforbes.com If their vaccine does not help in the slightly longer term, this component should be disposed of and then we make Baby Powder!
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