Healthcare major Johnson & Johnson on Friday said it plans to separate its Consumer Health business, to create a new public company.
The planned organizational design for the New Consumer Health Company is expected to be complete by the end of 2022, Alex Gorsky, chairman and CEO of J&J, said.
"The Consumer Health business is the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, and drive profitable growth," Gorksy said.
The transaction is intended to qualify as a tax-free separation for US federal income tax purposes.
In addition, it is expected that the overall shareholder dividend will remain at least at the same level following the completion of the transaction, the company said in a statement.
The New Consumer Health Company aims to have a portfolio of brands-comprising four 1-billion-dollar megabrands and 20 brands of over 150 million dollars, with notable positions in Self Care, Skin Health and Essential Health, which includes baby care, feminine care, wound care, and oral health.
The Consumer Health segment of J&J is expected to generate revenue of about 15 billion dollars for full-year 2021-22 and, following the planned separation, the New Consumer Health Company targets to generate sales in over 100 countries.
