Johnson & Johnson announced Nov. 12 it will spin off its consumer health products division into a separate public company, while its Jacksonville-based vision care business remains under Johnson & Johnson.
The vision care business, which produces contact lenses under the Acuvue brand, is part of the company’s medical device division.
After spinning off the consumer division, New Jersey-based Johnson & Johnson will consist of its pharmaceutical and medical device businesses.
“Following a comprehensive review, the Board and management team believe that the planned separation of the Consumer Health business is the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, drive profitable growth, and – most importantly – improve healthcare outcomes for people around the world,” CEO Alex Gorsky said in a news release.
The unnamed consumer health company’s brands will include products such as Tylenol, Listerine and Band-Aid. Those businesses are expected to produce about $15 billion in revenue this year.
The pharmaceutical and medical device businesses are projected to have $77 billion in revenue in 2021. The vision care business, which includes eye surgical products, generates more than $4 billion in annual revenue.
The spinoff is expected to be completed by the end of 2022.