People wait in line at a mobile COVID-19 vaccination center in the Brooklyn borough of New York, the United States, Aug. 18, 2021. (Xinhua/Michael Nagle)
Johnson & Johnson plans to complete the separation in 18 to 24 months while the organizational design for the new consumer health company would be completed by the end of 2022.
NEW YORK, Nov. 12 (Xinhua) -- U.S.-based multinational corporation Johnson & Johnson, Inc. on Friday announced that it plans to separate consumer health business from pharmaceutical and medical device operations.
The new consumer health company yet to be named would also be a public-traded company.
The separation is designed to enhance operational performance and strategic flexibility, benefiting patients and consumers and unlocking value for all stakeholders, said Johnson & Johnson in a press release.
Johnson & Johnson plans to complete the separation in 18 to 24 months while the organizational design for the new consumer health company would be completed by the end of 2022, according to Johnson & Johnson.
Following the planned separation, the new Johnson & Johnson would remain the world's largest and most diverse healthcare company, said the release.
"For the new Johnson & Johnson, this planned separation underscores our focus on delivering industry-leading biopharmaceutical and medical device innovation and technology," said Alex Gorsky, chairman of the board and chief executive officer (CEO) of Johnson & Johnson.
A medical worker prepares the COVID-19 vaccine at a COVID-19 vaccination clinic in Pasadena, Los Angeles County, California, the United States, Aug. 19, 2021. (Xinhua)
Meanwhile, the new consumer health company would be a leading global player, touching the lives of over 1 billion consumers around the world every day, according to the company.
The pharmaceutical and medical devices segments of Johnson & Johnson are expected to generate around 77 billion U.S. dollars of revenue in 2021 while the consumer health segment would post around 15 billion U.S. dollars of revenue in the same period, according to the release.
As previously announced, Gorsky will serve as executive chairman of Johnson & Johnson and transition the CEO role to Joaquin Duato, currently vice chairman of the company's executive committee, effective January 3, 2022.
The leadership and management of the consumer health company would be determined and announced in due course as the planned separation process progresses, said the release.
Johnson & Johnson recorded 23.34 billion U.S. dollars of sales revenues and 3.67 billion U.S. dollars of net earnings in the quarter ending Oct. 3, 2021, according to the latest earnings report of the company. ■