(Businesshala) – Johnson & Johnson said on Friday it plans to split into two companies, separating its consumer health division that sells Band-Aids and baby powder from its larger pharmaceutical unit.
The healthcare company will separate its consumer health business into a new publicly traded company and is aiming to complete the planned separation in 18 to 24 months, it said in a statement.
J&J will retain its pharmaceuticals and medical device units, which sell drugs such as the cancer treatment Darzalex. The units are expected to generate approximately $77 billion in revenue in 2021.
Shares of the company were up 5% before the bell.