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 The healthcare conglomerate will separate its consumer health
business into a new publicly traded company. Rival Pfizer Inc had in
2019 combined its consumer health unit with GlaxoSmithKline plc in a
joint venture.
Johnson & Johnson said it is aiming to complete the planned
separation in 18 to 24 months, sending its shares up 5% before the
bell.
The company will retain its pharmaceuticals and medical device
units, which sells drugs such as cancer treatment Darzalex. The
units are expected to generate revenue of roughly $77 billion in
2021.
"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,"
said Joaquin Duato, who is expected to become J&J's chief executive
officer in January.
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 The planned split comes days
after U.S. industrial conglomerate General
Electric Co said it would separate into three
public companies to simplify its business and
pare down debt.
On Friday, Japan's Toshiba Corp outlined plans
on Friday to split into three independent
companies.
(Reporting by Manas Mishra in Bengaluru; Editing
by Arun Koyyur)
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