Johnson & Johnson announced Friday that it will split itself into two publicly traded companies.
One of the new companies will focus on consumer brands, including Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Aid. It is expected to generate revenue of approximately $15 billion for the year. A name was not given for the new company.
The other company, which will keep the Johnson & Johnson name, will include treatments such as Darzalex, Erleada, Imbruvica, Stelara and Tremfya as well as medical device solutions across interventional solutions, orthopaedics, surgery and vision.
The prescription drug arm also makes one of three COVID-19 vaccines currently approved for use in the United States.
"We believe that the new Johnson & Johnson and the New Consumer Health Company would each be able to more effectively allocate resources to deliver for patients and consumers, drive growth and unlock significant value," said Joaquin Duato, vice chairman of the company’s executive committee who will become CEO in January.
Details are sparse, but Johnson & Johnson expects the split to occur in the next two years, if approved by the company board.
Shares climbed more than 5% in premarket trading after the company’s announcement.
News of the split was first reported by The Wall Street Journal.
Earlier this week, General Electric announced it will become three separate companies focusing on health care, aviation and energy.
The Associated Press contributed to this report