J&J Breaks Up into Two Companies

Johnson & Johnson (J&J) announced its plans to split the company into two, one unit for consumer products and another for pharmaceuticals.

“The planned separation would create two global leaders that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth,” said J&J.

The division J&J followed the resignation of CEO Alex Gorsky in January and will be replaced by Joaquin Duato.

J&J’ expects the transition to be finished in18 to 24 months and would qualify as a tax-free separation for U.S. federal income tax purposes.

J&J’s division followed General Electric’s similar move a week ago.

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