US pharmaceutical giant Johnson & Johnson on Friday announced plans to break up into two companies, separating its consumer health arm that sells Band-Aids and Tylenol from its pharmaceutical division.
Johnson & Johnson said in a statement it will create “two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation.”
It is the third major company to announce plans to break up its business this week after General Electric and Toshiba.
Johnson & Johnson plans to complete the separation in 18-24 months, creating two publicly traded companies.
CEO Alex Gorsky said the decision was made following a “comprehensive review.”
The board and management believe the split is “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 -– improve healthcare outcomes for people around the world,” he said.
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