J&J plans to separate into two corporations, separating shopper merchandise and pharmaceutical companies

Health conglomerate Johnson & Johnson announced plans on Friday to spin off its consumer products business from its pharmaceutical and medical device businesses, creating two publicly traded companies. The news sent stocks up in pre-trading hours.

The separation will separate the Household Products division, manufacturer of patches, Aveeno and Neutrogena skin care products, and Listerine from its riskier but faster growing division that makes and sells prescription drugs and medical devices, including his Covid-19 Vaccination.

“After a thorough review, the board and management team believe that the proposed separation of the consumer health business is the best way to accelerate our efforts to serve patients, consumers and healthcare professionals, opportunities for our talented global community Create a team and drive profitable growth, and most importantly, improve health outcomes for people around the world, ”outgoing CEO Alex Gorsky said in a statement.

The company hopes to complete the transaction in 18 to 24 months. The Pharmaceuticals and Medical Devices division, which includes advanced technologies such as robotics and artificial intelligence, would keep the Johnson & Johnson name and keep J & J’s new CEO Joaquin Duato at the helm.

Gorsky told CNBC that the company has yet to set a name for the new publicly traded consumer business.

He said the decision to liquidate the company had been discussed by his board of directors since “it came” as it would present “tremendous opportunities” to stakeholders.

“It is in the best long-term interests of all of our stakeholders,” he continued.Squawk box. “” Our goal is to create two world leaders – a pharmaceutical and medical device business that has huge potential today … and of course the iconic brand consumer business. “

Duato will take on the role as planned in January. These segments are expected to generate sales of around $ 77 billion, while the consumer goods division is expected to sell around $ 15 billion in products this year, the company said.

His yet-to-be-named consumer products company will also inherit litigation arising from lawsuits over allegations that its Johnson’s Baby Powder causes cancer, allegations the company has vehemently denied.

Gorsky said the consumer division has four brands alone with annual sales of more than $ 1 billion. The separation will allow the company “even more agility” and “better opportunity to allocate capital,” he said.

J & J’s shares rose more than 3% in pre-trading hours following the announcement.

With Gorsky’s departure as CEO, J&J already went through a major transformation. He will remain in office as Executive Chairman of the new J&J, the company said.

In addition, the company planned to keep the total dividend “at least at the same level” after the change. J&J currently has a dividend yield of around 2.6%.

The announcement comes just a few days later General electrics said it plans to split into three separate publicly traded companies and to spin off its medical and energy divisions from the aviation division.

– CNBCs Berkeley Lovelace Jr. contributed to this report.

Kim Kardashian West “does effectively” following the cut up of Kanye West | Leisure Information

Kim Kardashian West “is fine” after breaking up with Kanye West.

The Keeping Up with the Kardashians star filed for divorce from Kanye in February and the decision wasn’t an easy one, but she has now settled on her choice.

“Kim is fine. She was in big trouble when she filed for divorce. She was very angry about it and didn’t want to apply, ”a source told People magazine. It’s been a long time since she filed for divorce and I’m sure she is very happy and made the right decision. “

Insiders also reveal that Kim and Kanye’s children – North, 7, cents, 5, Chicago, 3, Psalm, 2 – are “healthy” and Kanye still sees them “often.” I did it.

Since the couple split up, Kim and her children have continued to live at the Hidden Hills mansion she shared with 43-year-old Kanye, and the rapper lived mostly in Wyoming.

And a source once said that Kim would rather stay home so her chicks don’t have to go through the stress of moving house.

Another source said: “The two agree that the less stress a child experiences, the better. Kanye loves the kid.

Meanwhile, Kim was recently seen crying on her family’s episode this week’s E !! On a reality show filmed last year, she spoke openly about the breakdown of their marriage.

Kim hinted that nearly seven years after marrying a “heartless” rapper, he divorced because he was “worthy” of a woman who could travel from state to state with him.

She told her sisters:

“Why am I still in a place like this that has been stuck for years? For example, he goes to a different state or moves to a different state every year to raise a child. I have to be with him and he was a great father and did a great job. “

The founder of Skim admitted that when she “failed” she felt like a “loser”.

She added: I feel like a loser from F *****. But I can’t even want to be happy. “

Kim Kardashian West is “fine” after separating from Kanye West | Entertainment news

Source link Kim Kardashian West is “fine” after separating from Kanye West | Entertainment news

Nike cut up with Neymar after sexual assault investigation, report says

Lionel Bonaventure | Getty Images

Nike said it ended its partnership with Neymar da Silva Santos Jr. – better known as Neymar – when the soccer superstar refused to cooperate with an investigation into sexual assault allegations against him.

“Nike ended its relationship with the athlete because he refused to cooperate in good faith with an investigation into credible allegations of employee misconduct,” Nike said in a statement late Thursday.

The Wall Street Journal reported the news first.

The company announced last summer that it had split from Neymar but had not given a reason for the sudden move. The Journal reported that Neymar’s deal with Nike remained eight years at the time.

The company said it was “deeply concerned” by an incident the employee allegedly committed in 2016.

A spokeswoman for Neymar told the WSJ that it denies the allegations.

Nike said the employee reported the allegations in 2018 and initially wanted to keep them confidential and avoid investigation. As a result, Nike announced that out of respect for the employee’s privacy, no details have been disclosed to law enforcement agencies or third parties.

Nike announced it had commissioned an independent investigation into the allegations in 2019 when the employee expressed an interest in pursuing the matter. However, the company said the investigation was inconclusive.

“There weren’t any facts that would allow us to talk about it. It would be inappropriate for Nike to make an accusatory statement without being able to provide supporting facts,” the company said.

In 2017, Neymar left Spanish club FC Barcelona to move from Paris Saint Germain for a record transfer fee $ 263 million.

– CNBC’s Jessica Golden contributed to this report.