“J&J plans to split into two companies, separating consumer products and pharmaceutical businesses”
November 12, 2021
“Health-care conglomerate Johnson & Johnson announced plans Friday to split its consumer products business from its pharmaceutical and medical device operations, creating two publicly traded companies. The news sent shares higher in premarket trading.
The separation will sheer off its household products unit, maker of Band-Aid bandages, Aveeno and Neutrogena skin care products, and Listerine, from its riskier, but faster-growing division that makes and sells prescription drugs and medical devices, including its Covid-19 vaccine…”
In my opinion this is an attempt for this company to protect its assets. The riskier side of the company is being put into a separate business. If somebody were to sue for whatever reason they might not sue the parent company. Also brand recognition is a thing. If one company earns a bad reputation the other one is still “good” technically speaking. most people don’t go by parent company names. Word of mouth would affect the overall business less.
That’s my take on what’s happening.