Johnson & Johnson said on Friday it is planning to break up into two companies, splitting off its consumer health division that sells Band-Aids and Baby Powder from its large pharmaceuticals unit.
The healthcare conglomerate will separate its consumer health business into a new publicly traded company. Rival Pfizer Inc had in 2019 combined its consumer health unit with GlaxoSmithKline plc in a joint venture.
Johnson & Johnson said it is aiming to complete the planned separation in 18 to 24 months, sending its shares up 5 per cent before the bell.
The company will retain its pharmaceuticals and medical device units, which sells drugs such as cancer treatment Darzalex. The units are expected to generate revenue of roughly $77 billion in 2021.
"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, who is expected to become J&J's chief executive officer in January.
The planned split comes days after U.S. industrial conglomerate General Electric Co said it would separate into three public companies to simplify its business and pare down debt.
On Friday, Japan's Toshiba Corp outlined plans on Friday to split into three independent companies.
The tech-heavy Nasdaq Composite index was set to confirm it was in a bear market on Friday, down more than 20 per cent from a recent record high, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.
UAE-based Dana Gas and Crescent Petroleum, alongside their partners in the Pearl Petroleum consortium, have said the cumulative production from their Khor Mor project, the largest non-associated gas field in Iraq, has exceeded 500 million barrels of oil equivalent (boe).
China has announced a slew of additional tariffs and restrictions against US goods as a countermeasure to sweeping tariffs imposed by US President Donald Trump. The Finance Ministry said it would impose additional tariffs of 34 per cent on all US goods from April 10.
Stocks limped to the end of the week on Friday, the dollar was set for its worst week in a month while gold flirted with a record peak as investors feared US President Donald Trump's sweeping tariffs would tip the global economy into a recession.
US stock index futures tumbled on Thursday after President Donald Trump's sweeping tariffs on major trade partners heightened fears of an all-out trade war that could push the global economy into a recession.
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