Johnson and Johnson plans to spinoff the company into two publicly traded companies

J&J will spinoff its company and this may be a good way to unlock value and also it will be good news for investors who are looking for a valuable asset to invest in. For many years, we have been talking about the advantage of finding a good spinoff stock to invest in and J&J’s split may provide that opportunity that investors are looking for.


According to a recent update from the company, J&J will split into two companies, one will be Consumer products and the other will be the pharmaceutical businesses.  The split will create two publicly traded companies and the news sent the shares soaring higher premarket on Friday, November 12, 2021.


The separation will sheer off its household products unit, maker of Band-Aid bandages, Aveeno and Neutrogena skincare products, and Listerine, from its riskier, but the faster-growing division that makes and sells prescription drugs and medical devices, including its Covid-19 vaccine. – CNBC.


“Following a comprehensive review, the board and management team believe that the planned separation of the consumer health business is the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, drive profitable growth, and – most importantly – improve healthcare outcomes for people around the world,” outgoing CEO Alex Gorsky said in a statement. 


The J&J spinoff should be completed in about 18 to 24 months. One of the companies will have a new name but the name is still pending. 


“It’s in the best long-term interest of all our stakeholders,” he said on “Squawk Box.” “Our goal is really to create two global leaders – a pharmaceutical and medical device business that has great potential today ... and of course, the consumer business that’s got iconic brands.” – Gorsky.

JnJ stock Quarterly financials
(USD)Oct 2021Y/Y
Net income3.67B
Diluted EPS1.37
Net profit margin15.71%

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