J&J to Divorce Pharmaceuticals Business from Consumer Products Group

Johnson & Johnson (J&J) plans to spin off its over-the-counter consumer products unit from its more lucrative prescription drugs and medical devices division, splitting itself into two publicly traded companies within the next 18 to 24 months.

The J&J name will stay attached to the new pharmaceuticals business while the new consumer healthcare company is as-of-yet not named. In addition, the J&J pharmaceuticals company will have a new CEO onboard starting Jan. 3, 2022, as long-time J&J executive and current CEO Alex Gorsky is stepping down. Gorsky is set to be replaced by Joaquin Duato, vice chairman of the company’s executive committee, who will oversee the planned separation.

The “new” J&J aims to strengthen its pharmaceuticals and medical devices portfolio, which is projected to rake in $77 billion in 2021 revenue.

Among its high-profile drugs treating serious conditions are multiple myeloma drug Darzalex (daratumumab), prostate cancer therapy Erleada (apalutamide) and blockbuster Imbruvica (ibrutinib), co-developed with AbbVie, and prescribed for treating certain leukemias and lymphomas as well as chronic host vs. graft disease.