The Johnson & Johnson logo is displayed on a screen on the floor of the New York Stock Exchange in New York, US. File photo: REUTERS/BRENDAN MCDERMID
The move by the world's largest health products company comes hot on the heels of similar announcements this week by industrial conglomerates Toshiba and General Electric and underscores how big, diversified corporations are under pressure to simplify. “The new J&J and the new consumer health company would each be able to more effectively allocate resources to deliver for patients and consumers, drive growth and unlock significant value,” said Joaquin Duato, who is expected to become CEO in January.
The higher growth outlook comes despite disappointing sales of J&J’s Covid-19 vaccine following a string of production setbacks and fierce competition from rivals such Pfizer and Moderna.J&J’s plan to hive off its consumer health business into a publicly traded company echoes a move by GlaxoSmithKline and Pfizer, which also plan to spin off their joint consumer health business in 2022.