Johnson & Johnson, world's largest pharmaceutical company, to split into two companies
In a statement, Johnson & Johnson stated that the merger will create "two global leaders who will be better positioned to offer improved health outcomes for patients and customers via innovation."
Johnson & Johnson, the world's largest pharmaceutical company, revealed intentions to split into two firms on Friday, separating its consumer health arm, which distributes Band-Aids and Tylenol, from its pharmaceutical section. In a statement, Johnson & Johnson stated that the merger will create "two global leaders who will be better positioned to offer improved health outcomes for patients and customers via innovation." It is the third large corporation to announce plans to split its operations this week, following General Electric and Toshiba. Johnson & Johnson intends to complete the split in 18-24 months, resulting in two publicly listed corporations.
CEO Alex Gorsky stated that the decision was taken after a "thorough study." He went on to say that the split is the optimal approach to accelerate our efforts to serve patients, customers, and healthcare professionals. It provides opportunities for our great global workforce, promotes profitable development, and, most importantly, improve healthcare outcomes for people; all over the globe.
He went on to say that the split "underscores our emphasis on producing industry-leading biopharmaceutical and medical device innovation and technology to bring novel solutions to market for patients and healthcare systems while creating sustainable value for shareholders." According to the corporation, its more than 136,000 employees worldwide "will continue to be the backbone of these businesses." General Electric revealed intentions to divide into three publicly listed entities earlier this week. Toshiba of Japan said Friday that it would split into three firms, following drive-by investors to increase the group's shares after a period of turbulence.
Earlier, Johnson & Johnson said that the second dosage of their COVID-19 vaccine, administered around two months after the first, increased its effectiveness against moderate to severe forms of the sickness in the United States to 94%. This is in comparison to a single dose offering 70% protection. The numbers will help J&J's case to US regulators for a booster shot, even as the company highlights the durability of its single-shot immunisation as a weapon in the fight against the global pandemic.