Shares of Johnson & Johnson jumped in premarket trading after the healthcare giant announced that it is splitting itself into two publicly traded companies.
The new companies will consist of one focused on consumer products, such as Band-Aid bandages and baby powder, and another focused on prescription drugs and medical devices.
Shares of Johnson & Johnson were up more than 4% in premarket trading after the announcement.
Johnson & Johnson was already undergoing a major transition, as CEO Alex Gorsky has previously announced that he will step down in January. Joaquin Duato, who was tapped as Gorsky’s successor, will lead the new J&J following the spinoff, the company said Friday.
Additionally, the company said it planned to keep its total dividend “at least at the same level” following the change. J&J currently sports a divided yield of about 2.6%.
The announcement is the second time this week that a major U.S. company has announced a plan to split itself, following General Electric.
The news was first reported by the Wall Street Journal.
This is breaking news. Please check back for updates.
Leave a Reply