Iran Press/ America: The company plans to complete the separation in 18-24 months, creating two publicly-traded companies, and the transaction will "qualify as a tax-free separation," Johnson & Johnson said in a statement on Friday.
Alex Gorsky, CEO of the company, said the decision to create a new consumer health business was made following a "comprehensive review."
Gorsky will stay on as executive chair but at the start of January his vice-chair Juaquin Duato will take over as CEO.
"This planned transaction would create two businesses that are each financially strong and leaders in their respective industries," Duato said.
J&J Chief Financial Officer Joseph Wolk said the split is not linked to the legal woes, nor the company's recent bankruptcy proceedings.
The company said its more than 136,000 employees around the world "will remain the backbone of these businesses."
The consumer health branch, which produces Neutrogena skincare products and baby powder, generated $3.7 billion in the third quarter of 2021, nearly 16 percent of the group's total revenue.
Meanwhile, its single-dose Covid-19 vaccine generated nearly $20 billion in revenue in the period.
The company is still dealing with the fallout from thousands of lawsuits over its talcum powder containing traces of asbestos that causes cancer.
A US court last year ruled Johnson & Johnson would have to pay $2.1 billion in damages.
The firm has never admitted wrongdoing but stopped selling talc-based baby powder in the US and Canada in 2020.
Art Hogan of National Securities noted that the "consumer unit has been beset by lawsuits," while J&J's pharmaceutical arm has long been its strongest performer.
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