Johnson & Johnson said on Friday that 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 company will separate its consumer health business into a new publicly traded company and is aiming to complete the planned separation in 18 to 24 months, it said in a statement.
J&J 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, Reuters reported.
Shares of the company rose 5% before the bell.
