Johnson & Johnson To Split Into Two Companies

Johnson & Johnson is splitting into two companies, peeling off the division selling Band-Aids and Listerine from its medical device and prescription drug business, Michelle Chapman and Tom Murphy reported for the Associated Press (AP).

Photo Insert: The facade of the Johnson & Johnson headquarters

The world’s biggest maker of health care products, founded in 1886, said Friday the move will help improve the focus and speed of each company to address trends in their different industries.

The company selling prescription drugs and medical devices — J&J’s two largest businesses — will keep the Johnson & Johnson name. That company sells treatments such as Darzalex, Erleada, Imbruvica, Stelara, and Tremfya as well as devices for orthopedics and surgery.

Pharmaceuticals and medical devices pulled in a combined $19.6 billion in revenue in the company’s recently completed third quarter, which turned out better than analysts expected. Consumer health brought in $3.7 billion.

US Senators Dick Durbin of Illinois and Elizabeth Warren of Massachusetts, among others, recently sent a letter to the company asking for more information about a newly-created subsidiary that filed for Chapter 11 bankruptcy protection.

The senators in a Nov. 10 letter called the move a “corporate shell game” that would shield the company from liability in those cases. Company officials said Friday that their announcement was “separate and distinct” from the baby powder situation.

J&J’s announcement Friday comes just days after General Electric said that it plans to split into three separate companies. It also follows similar moves by other large health care firms which sought to narrow their focus.

Rival drugmaker Pfizer Inc. spun off its consumer health product business in 2019 to help create a joint venture with GlaxoSmithKline. Another drugmaker, Merck & Co. Inc., slimmed down in June with a spinoff that combined its Organon women’s health unit with its businesses selling biosimilars, or near-copies of pricey biologic drugs, and off-patent former blockbusters like respiratory drugs Singulair and Nasonex.

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