Johnson & Johnson is dividing into two separate companies; one will focus on its medical devices and drugs, and the other will focus on consumer health products.
Completion of the separation is expected in 18 to 24 months, according to a Nov. 12 news release. On Jan. 3, Joaquin Duato will take over as CEO of Johnson & Johnson.
Johnson & Johnson will continue focusing on pharmaceuticals and medical devices, including orthopedics. The new consumer health company will focus on consumer products, including bandages, lotions and Tylenol.
The planned separation of consumer health is expected to accelerate the company's efforts to serve patients, CEO Alex Gorsky said in a statement.
"For the new Johnson & Johnson, this planned separation underscores our focus on delivering industry-leading biopharmaceutical and medical device innovation and technology with the goal of bringing new solutions to market for patients and healthcare systems, while creating sustainable value for shareholders," he said.