Johnson & Johnson shares jumped after the company said it will break itself up into two public companies, one focused on drugs and medical devices, and the other on consumer products.
The health-care giant will split off its consumer division in 18 to 24 months, the company said in a statement. The consumer unit has been beset by lawsuits involving products such as baby-powder, which has been linked to ovarian cancers in some users. The shares gained 4.9% in trading before U.S. markets opened.
J&J’s pharmaceutical arm its strongest performer. The drug unit generated 55% of the company’s sales in 2020, with another 28% coming from the medical device unit, and 17% from the consumer arm. Altogether in 2020, J&J made $83 billion in revenue. As the company continues to demonstrate strong growth, analysts estimate J&J will produce $94 billion in 2021 sales.
Though J&J’s consumer unit brings in the smallest piece of the revenue pie, it’s got immense brand recognition. The division boasts over-the-counter medications such as Tylenol, Motrin, Zyrtec, as well as household name brands like BAND-AID, Listerine, Neutogena, Neosporin, Aveeno, Clean & Clean, Rogaine, and more.
J&J has gained just 3.6% this year through Thursday’s close. Meanwhile, Pfizer Inc. has risen 36%, while Lilly has surged 55% and Merck 7.7%.
{{/usCountry}}J&J has gained just 3.6% this year through Thursday’s close. Meanwhile, Pfizer Inc. has risen 36%, while Lilly has surged 55% and Merck 7.7%.
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