Johnson & Johnson to Break up into 2 Companies

Johnson & Johnson plans to split into two companies, breaking up the USD 15 billion a year pision that sells first aid bandages, Tylenol drugs and Baby Powder in a shift that signals how much healthcare has changed since helping the company pioneer the industry.

J&J, which is the largest health company by sales, will separate its higher-margin but less predictable pharmaceutical and medical business from its slower-growing consumer-based business, creating two publicly traded companies.

The 135-year company plans to separate its consumer pision that sells Listerine and Baby Powder to focus on pharmaceuticals, including vaccines and medical devices.

Meantime, nearly 40,000 lawsuits alleged its Baby Powder and other talc products include cancer-causing substances.