New York (CNN Business) – Johnson & Johnson, the world’s largest sanitary products company, is breaking up.
The company, whose roots go back to 1886, will be divided in two: one of them will focus on consumer sanitary products that customers can buy without a prescription, such as Benadryl, Band-Aids and Tylenol. The other company will sell prescription drugs and medical devices. Both companies will be publicly traded.
The goal of the separation is to create “two world leaders who are better positioned to deliver better healthcare outcomes to patients and consumers through innovation,” the company said in a statement. The address and new name of the consumer-focused division have not yet been announced.
The Actions J&J were up more than 4% in premarket trading. The Wall Street Journal was the first to report the news.
The company’s CEO Alex Gorsky said the changes are the “best way to accelerate our efforts to serve patients, consumers and healthcare professionals, create opportunities for our talented global team, drive profitable growth. and, most importantly, improving health care outcomes for people around the world. “
The pharmaceutical business unit, which manufactures the covid-19 vaccine and will maintain the Johnson & Johnson name, will continue to be one of the largest manufacturers of medicines and healthcare products in the world.
Gorsky also told that newspaper that the lawsuits related to his baby powder did not influence the breakup.
The company has its roots in a sanitary products company created by Robert Wood Johnson and his brothers.
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