The US company wants to outsource its consumer products business.
(Photo: AP)
new York The US pharmaceutical company Johnson & Johnson wants to split into two companies. A part will specialize in consumer products with brands such as Listerine, Penaten and Band Aid, as the company announced on Friday. The business will be outsourced to a listed company and the process should be completed in 18 to 24 months.
The pharmaceutical business with drugs and medical equipment with around 77 billion dollars in sales will remain with Johnson & Johnson. The split is the best way to secure sustainable growth over the long term, said CEO Alex Gorsky the “Wall Street Journal”. The group decided to do so because the two divisions had diverged in recent years.
In pre-market trading, the shares rose by five percent. Most recently, General Electric and Toshiba had announced a split.
More: Technology group Toshiba splits into three companies
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