J&J Announces Intent To Separate Into Two
November 14, 2021 at 10:21 p.m.
By David [email protected]
The planned separation would create two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth, according to a news release posted on the company’s website.
DePuy Synthes, Warsaw, is part of the Johnson & Johnson company.
Following the planned separation, the new Johnson & Johnson would remain the world’s largest and most diverse healthcare company and continue its commitment to lead in global healthcare R&D and innovation, with a portfolio that blends its strong pharmaceutical and medical device capabilities focused on advancing the standard of care through innovation and technology the release states.
As previously announced, Alex Gorsky will serve as executive chairman of Johnson & Johnson and transition the chief executive officer role to Joaquin Duato, currently vice chairman of the company’s executive committee, effective Jan. 3. Duato would continue to lead the new Johnson & Johnson following completion of the planned separation.
The new consumer health company would be a leading global consumer health company, touching the lives of over 1 billion consumers around the world every day through brands such as Neutrogena, Aveeeno®, Tylenol®, Listerine®, Johnson’s® and Band-Aid® and continuing its legacy of innovation, the release states. The new consumer health company’s board of directors and executive leadership will be determined and announced as the planned separation process progresses.
Gorsky said, “Throughout our storied history, Johnson & Johnson has demonstrated that we can deliver results that benefit all our stakeholders, and we must continually be evolving our business to provide value today, tomorrow and in the decades ahead. Following a comprehensive review, the Board and management team believe that the planned separation of 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, drive profitable growth and – most importantly – improve healthcare outcomes for people around the world.”
Gorsky continued, “For the new Johnson & Johnson, this planned separation underscores our focus on delivering industry-leading biopharmaceutical and medical device innovation and technology with the goal of bringing new solutions to market for patients and healthcare systems, while creating sustainable value for shareholders. We believe that the new consumer health company would be a global leader across attractive and growing consumer health categories, and a streamlined and targeted corporate structure would provide it with the agility and flexibility to grow its iconic portfolio of brands and innovate new products. We are committed to the success of each organization, as well as our company’s more than 136,000 employees around the globe, who will remain the backbone of these businesses.”
Duato said, “This planned transaction would create two businesses that are each financially strong and leaders in their respective industries. We believe that the new Johnson & Johnson 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. Importantly, the new Johnson & Johnson and the new consumer health company would remain mission driven companies with exceptional brands, commitments to innovation and remarkable talent. Each company would carry on the Johnson & Johnson legacy of putting the needs and well-being of the people we serve first.”
The company is targeting completion of the planned separation in 18 to 24 months, subject to the satisfaction of certain conditions including, among others, consultations with works councils and other employee representative bodies, as required, final approval of Johnson & Johnson’s board of directors, receipt of a favorable opinion and Internal Revenue Service ruling with respect to the tax-free nature of the transaction, and the receipt of other regulatory approvals. There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed.
The planned separation would create two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth, according to a news release posted on the company’s website.
DePuy Synthes, Warsaw, is part of the Johnson & Johnson company.
Following the planned separation, the new Johnson & Johnson would remain the world’s largest and most diverse healthcare company and continue its commitment to lead in global healthcare R&D and innovation, with a portfolio that blends its strong pharmaceutical and medical device capabilities focused on advancing the standard of care through innovation and technology the release states.
As previously announced, Alex Gorsky will serve as executive chairman of Johnson & Johnson and transition the chief executive officer role to Joaquin Duato, currently vice chairman of the company’s executive committee, effective Jan. 3. Duato would continue to lead the new Johnson & Johnson following completion of the planned separation.
The new consumer health company would be a leading global consumer health company, touching the lives of over 1 billion consumers around the world every day through brands such as Neutrogena, Aveeeno®, Tylenol®, Listerine®, Johnson’s® and Band-Aid® and continuing its legacy of innovation, the release states. The new consumer health company’s board of directors and executive leadership will be determined and announced as the planned separation process progresses.
Gorsky said, “Throughout our storied history, Johnson & Johnson has demonstrated that we can deliver results that benefit all our stakeholders, and we must continually be evolving our business to provide value today, tomorrow and in the decades ahead. Following a comprehensive review, the Board and management team believe that the planned separation of 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, drive profitable growth and – most importantly – improve healthcare outcomes for people around the world.”
Gorsky continued, “For the new Johnson & Johnson, this planned separation underscores our focus on delivering industry-leading biopharmaceutical and medical device innovation and technology with the goal of bringing new solutions to market for patients and healthcare systems, while creating sustainable value for shareholders. We believe that the new consumer health company would be a global leader across attractive and growing consumer health categories, and a streamlined and targeted corporate structure would provide it with the agility and flexibility to grow its iconic portfolio of brands and innovate new products. We are committed to the success of each organization, as well as our company’s more than 136,000 employees around the globe, who will remain the backbone of these businesses.”
Duato said, “This planned transaction would create two businesses that are each financially strong and leaders in their respective industries. We believe that the new Johnson & Johnson 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. Importantly, the new Johnson & Johnson and the new consumer health company would remain mission driven companies with exceptional brands, commitments to innovation and remarkable talent. Each company would carry on the Johnson & Johnson legacy of putting the needs and well-being of the people we serve first.”
The company is targeting completion of the planned separation in 18 to 24 months, subject to the satisfaction of certain conditions including, among others, consultations with works councils and other employee representative bodies, as required, final approval of Johnson & Johnson’s board of directors, receipt of a favorable opinion and Internal Revenue Service ruling with respect to the tax-free nature of the transaction, and the receipt of other regulatory approvals. There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed.
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