Johnson & Johnson To Spin Off Consumer Health Business: What You Need To Know

Articles From: Benzinga
Website: Benzinga


Benzinga Staff Writer

Johnson & Johnson JNJ will separate its Consumer Health business into a publicly-traded company to pursue more targeted business strategies and accelerate growth.

Alex Gorsky will serve as Executive Chairman of Johnson & Johnson and transition the CEO role to Mr. Joaquin Duato, currently Vice Chairman of the Company’s Executive Committee, effective January 3, 2022.

Mr. Duato would continue to lead the new Johnson & Johnson following the completion of the planned separation.

The New Consumer Health Company’s Board and leadership would be finalized in due course.

The New Consumer Health Company includes four $1 billion megabrands and 20 brands over $150 million with established positions in Self Care (OTC), Skin Health, and Essential Health.

The Consumer Health segment is expected to generate revenue of approximately $15 billion in FY21 following the planned separation.

The Company is targeting completion of the planned separation in 18 to 24 months.

In addition, it is expected that the overall shareholder dividend will remain at least at the same level following the completion of the transaction.

Price Action: 

JNJ shares are up 2.73% at $167.51 during the premarket session on the last check Friday.

Originally Posted on November 12, 2021 – Johnson & Johnson To Spin Off Consumer Health Business: What You Need To Know

Disclosure: Benzinga

© 2022 Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.