Johnson & Johnson is plans to divide into two companies

Johnson & Johnson announced that it would split its consumer healthcare business into a new public company, in line with rivals GlaxoSmithKline plc and Pfizer Inc. Which plan to break their consumer healthcare business with them next year.

Johnson & Johnson plans to separating into two companies to separate its consumer health care division. Which sells bandages and baby powder, from its pharmaceuticals and medical devices business. The most significant upheaval in its 135-year history.

The move by the world’s largest healthcare company comes after similar announcements. This week from industry groups Toshiba and General Electric, highlighting pressure from large, diversified companies to simplify.

This is the case in the healthcare sector, where the slow and steady business of selling consumer products such as moisturizers.

And shampoos is increasingly diverging from the risky and highly lucrative work of developing and commercializing pharmaceuticals. Johnson & Johnson plans announced that it would split its consumer healthcare business into a new public company, in line with rivals GlaxoSmithKline plc and Pfizer Inc. Which plan to break their consumer healthcare business with them next year. In addition, Merck KGaA Germany sold its consumer healthcare division to Procter & Gamble Co. in 2018.

“The new Johnson & Johnson company and consumer healthcare will be able to more effectively allocate resources to caring for patients. And consumers, stimulate growth, and unlock significant value,” said Joaquin Duato. He is expect in January to become J&J CEO.

The company aims to complete the proposed split within 18-24 months and acquire 4% of its shares before the bell. Johnson & Johnson will retain its pharmaceutical and medical unit. Which sells the COVID-19 vaccine, drugs such as Darzalex to treat cancer, and medical equipment. The teams are expect to generate approximately $77 billion in sales by 2021.