Health-care giant Johnson & Johnson plans to break itself up into two companies, separating its massive consumer business, which makes Band-Aids, Tylenol and its controversial baby powder, from its pharmaceutical and medical-devices units, the company’s departing chief executive said Friday.
The breakup will officially separate the company’s rapidly growing — but very risky — pharmaceutical business, which focuses on prescription drugs, and medical devices business, from its consumer-focused business, home to popular name brands like Neutrogena skin-care products and Listerine mouthwash.
“The best path forward to ensure sustainable growth over the long term and better meet patient and consumer demands is to have our consumer business operate as a separate health care company,” CEO Alex Gorsky said in an interview with the Wall Street Journal.
