11/13/21 By Eva Windler
Johnson & Johnson is splitting into two companies. It will be peeling off its consumer product business, which sells products such as Tylenol, Band-Aid, and Listerine, separating these products from pharmaceutical products.
Company leaders claim this will make the company more efficient and capable of adapting to the changes in the market.
Although in the past Johnson & Johnson leaders have claimed that their diversity of products helps them stay strong through downturns in one market or the other, this change will make their company more specialized. CEO Alex Gorsky said, “I think we have consistently had the belief that our diversified portfolio is rooted in strategy… However, it’s not anchored in strategy.”
This is taking place at the same time as a CEO shift. The company announced in August that Joaquin Duato will be replacing Gorsky as CEO of J&J in January. The company split is expected to take place over the course of the next two years, as soon as it is approved by the Board of Directors.
The branch of Johnson & Johnson selling prescription drugs will keep its name. This branch will house products such as the COVID-19 vaccine and medical devices for surgery. The new consumer-based company has not been named yet but will be home to Neutrogena, Band-Aid, and Tylenol products, along with others.