TAGS: Skin Care
Johnson & Johnson (the “Company”) has announced its intent to separate the Company’s Consumer Health business, creating a new publicly traded company. The planned separation would create two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth.
Separation Designed to Enhance Performance
Following the planned separation, the new Johnson & Johnson would remain one of the world’s largest and most diverse healthcare company and continue its commitment to lead in global healthcare R&D and innovation, with a portfolio that blends its strong pharmaceutical and medical device capabilities focused on advancing the standard of care through innovation and technology.
As previously announced, Mr. Alex Gorsky will serve as executive chairman of Johnson & Johnson and transition the chief executive officer role to Mr. Joaquin Duato, currently vice chairman of the Company’s Executive Committee, effective 3 January 2022. Mr. Duato would continue to lead the new Johnson & Johnson following completion of the planned separation.
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We believe that the New Consumer Health Company would be a global leader across attractive and growing consumer health categories, and a streamlined and targeted corporate structure would provide it with the agility and flexibility to grow its iconic portfolio of brands and innovate new product,” said Gorksy.
New Company to Focus on Self Care & Skin Health
The New Consumer Health Company would be a leading global consumer health company, touching the lives of over one billion consumers around the world every day through iconic brands, such as Neutrogena, AVEENO®, Tylenol®, Listerine®, JOHNSON’s®, and BAND-AID® and continuing its legacy of innovation. The New Consumer Health Company’s Board of Directors and executive leadership would be determined and announced in due course as the planned separation process progresses.
The new company will focus on self care (OTC), skin health and essential health, which includes baby care, feminine care, wound care and oral health.
The planned separation is expected to create value for all stakeholders by aiming to achieve the following key goals:
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Increase management focus, resources, agility and speed to effectively address differing industry trends and to better meet the needs of the new Johnson & Johnson and the New Consumer Health Company patients and consumers
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Further focus capital allocation based on the objectives of each independent company
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Provide each company with a compelling financial profile that more accurately reflects the strengths and opportunities of each business and, as a result, offers investors a more targeted investment opportunity
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Align corporate and operational structures so each company is better able to drive growth and value creation
Source: Johnson & Johnson