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Johnson & Johnson To Reshuffle Its Top Brand Unit

Johnson & Johnson plans to make its consumer health brand into a separate unit. It means there will now be two publicly traded firms.

Johnson & Johnson To Reshuffle Its Top Brand Unit

Johnson & Johnson plans to make its consumer health brand into a separate unit. It means there will now be two publicly traded firms.

While Johnson & Johnson will be involved in the medical accessories and pharma business, a separate consumer-facing company will include the franchises dealing with Johnson’s baby products, Neutrogena skin products, and pain medications like Tylenol.

The rebranding is likely to be finalized in the coming 18 – 24 months. The move will have a significant place in history as J&J will lose renowned brands like Band-Aids, which have existed under J&J for almost 135 years.

According to the Wall Street Journal, Alex Gorsky, the CEO of J&J, said that the company’s decision was not influenced by the lawsuits claiming that Johnson’s Baby Powder contains talc and causes cancer.

The current Vice-Chairman of J&J, Joaquin Duato, will be in charge of the medical device and pharmaceutical company once he becomes the CEO on January 3.

The company executives claim that J&J will continue to be the world’s largest healthcare enterprise even after the split. The details of the new unit, including its name, leadership, etc., have not been confirmed yet.

In 2020, the consumer unit generated around $14 billion in revenue, a 1 percent increase from 2019. Projections show that the revenue will reach $15 billion in 2021 and 2022.

J&J is one of the only three authorized manufacturers of COVID-19 vaccines in the US. Its med-device department involves selling orthopedic, surgical, and optical accessories. The pharmaceutical division is known for Rx flagships, including cancer medication Imbruvica and immunology medicines like Remicade.

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