Johnson & Johnson Announces Plan to Spin Off Consumer Health Business into Independent Public Company

Xinhua News Agency, New York, November 12th, by reporter Ya'nan Liu — Johnson & Johnson announced on the 12th that, in order to implement a more targeted business strategy and accelerate growth, it will spin off its consumer health business into an independent listed company, separating it from the original pharmaceuticals business.

Johnson & Johnson stated that after the split, the new Johnson & Johnson will remain a diversified pharmaceutical and medical device enterprise, while the new consumer health company will be more focused on the consumer products sector. The revenue of these two companies in 2021 is expected to be approximately $77 billion and $15 billion, respectively.

Johnson & Johnson expects the spin-off plan to be completed within 18 to 24 months. The structure of the new consumer health company is expected to be completed by the end of 2022. After the spin-off, the stock dividend will be maintained at least at the same level.

Alex Gorsky, Chairman of the Board and Chief Executive Officer of Johnson & Johnson, stated that this split underscores the new Johnson & Johnson's focus on delivering industry-leading innovation and technology in biopharmaceuticals and medical devices. The optimized and more targeted corporate structure is believed to provide flexibility for brand growth and product innovation in the new consumer health company.