01:38
-10 C°
Traffic jam:   1
$
73.8453
83.3640

Johnson & Johnson shares rise on news of plans to split into two companies

13 November 2021
2921
2 min.
10
Johnson & Johnson shares rise on news of plans to split into two companies

Split into two companies

Johnson & Johnson's (JNJ) share price rose on the premarket on Friday after the company announced its intention to spin off its healthcare business into a new publicly traded company. The move follows similar ones from GE and Toshiba this week.

Shares in Johnson & Johnson (JNJ), up 3.6% since the start of 2021 and having lost 7.5% in the last quarter, were up 2.8% at the premarket on Friday.

The company announced that in 18-24 months it expects to complete the separation of its business into two companies: a pharmaceutical and medical device company, and a company with a suite of consumer brands (Neutrogena, AVEENO, Tylenol, ListerineJOHNSON'S and BAND-AID).

J&J said in its press release, "The planned separation will create two global leaders that can improve patient and consumer health outcomes through innovation, pursue more focused business strategies and accelerate growth."

As a result, both companies are acquiring different workforces. Pharmaceutical companies are currently booming in sales of covid-19 vaccines, but J&J consumer products are small, J&J baby powder causes cancerr, which the company vehemently denies.

Pfizer (PFE) made a similar move to separate its consumer brands 3 years ago to focus solely on pharmaceuticals. The move paid off for Pfizer: its stock rose 36% in 2021, thanks to the success of the Covid-19 vaccine.

Johnson & Johnson is already undergoing a major transition, as its chief executive Alex Gorsky previously announced he would step down in January. On Friday, the company said Joaquin Duato, who has been appointed to succeed Gorski, will lead the new J&J.

In addition, the company said it plans to keep the overall dividend "at least at the same level" after the change. Currently, the annual dividend yield on J&J shares is around 2.6%. The move by J&J follows announcements by General Electric (GE) and Japan's Toshiba to split into 3 companies this week.

Persons2 and Companies8 in the news

Vice Chairman of the Executive Committee for Johnson & Johnson
Person
Chairman, Board of Directors and Chief Executive Officer, Johnson & Johnson
Person
Johnson's Baby
Organization
Listerine
Organization
Aveeno
Organization
Neutrogena
Organization
Toshiba
Organization
General Electric
Organization
Pfizer
Organization
Johnson & Johnson
Organization
Section:

Discussion

Rating companies
Nasdaq
119 Mention
Apple
98 Mention
Tesla
92 Mention
Amazon
85 Mention
Dow Jones
83 Mention
Facebook
73 Mention
Microsoft
51 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
7900795948
Died this year
55661314
Born this year
136936684