New Jersey’s J&J to split consumers health arm that sells disputed baby talc products

by   |  VIEW 711

New Jersey’s J&J to split consumers health arm that sells disputed baby talc products

In what could be viewed as the largest overhaul in the New Brunswick-based American multinational conglomerate’s 135-year history, Johnson & Johnson, which has been facing off a flurry of lawsuits over presence of cancer-causing asbestos at its baby talc powder, had said on Friday that the conglomerate had been brewing off an option to split its consumer health division that markets Listerine and Baby talc Powder in a bid to focus more on pharmaceutical and medical devices.

Nonetheless, J&J’s latest move to a spin-off of its consumer health division came forth days after scandal-hit Japanese conglomerate Toshiba alongside sprawling US industrial giant General Electric also had outlined similar plans, underscoring growing pressures on diversified business empires to make their backbones more incomplex which in effect could help prevent a number of pernicious humiliations while increasing focus on core businesses.

If truth is to be told, J&J has been a blazing specimen of a diversified entity that had grown beyond its capability to manage itself, as a number of healthcare companies which usually sold off products such as shampoos and moisturizers and later started off selling high-risk, but high-reward, blockbuster drugs, begin to witness identical problems.

Meanwhile, referring to J&J’s latest overhaul, the company Chief Executive Alex Gorsky said, “We think these have evolved as fundamentally different businesses”.

J&J to split consumer health business that sells baby talc

According to J&J, the company has been planning to complete the spin-off in 18 to 24 months, while the proceedings would cost a total between $500 to $1 billion.

Followed by the announcement, J&J shares jumped as much as 2.69 per cent in pre-market trading, but pared some gains late in midday trading and closed out Friday’s Wall Street 1.20 per cent higher at $165.01 per share.