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J&J = 💊 + 🧼

Big changes ahead! The world’s largest health-product company Johnson & Johnson announced on Friday that it would split into two parts. 

J&J is so famous! Even it’s breaking up? 👀

What does J&J do? It is one of the world’s most valuable companies with 135 years of history. Its business has 2 parts

  • Consumer division that sells Band-Aids, shampoo, Listerine mouthwash, Johnson’s Baby Powder, Tylenol… and many other consumer goods that we all know.
  • Healthcare division that develops new drugs, medical devices, and the latest Covid vaccine 💉

Why split up? As you may feel 👆 their 2 arms have grown apart… with different expertise, different management, and different customers. J&J thinks it’s better to split them up to stay focused.

  • How different? Selling shampoo is a slow-and-stable business 🆚 developing new drugs has high risk, high failure rate, and of course high reward.

Here’s the plan: In the next 2 years, J&J will split into two public companies – pharmaceuticals 💊 and consumer products 🧼. The healthcare arm will also keep the Johnson & Johnson name, while the consumer arm will have a new name… to be revealed.

J&J shares were up 1.2% on Friday after the news. Many investors and analysts also like the idea: the simpler the better.

🐿️: Is now a splitting-up season? Others like General Electric and Toshiba also announced their splitting plan last week.

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