Johnson & Johnson announces split

The world’s largest healthcare product conglomerate will divide into two publicly traded companies within two years, according to an announcement Friday. The pharmaceutical drug and medical device segment, which includes the COVID-19 vaccine, will keep the original name. The consumer health company with more than 20 brands including Tylenol, Neutrogena, and Band-Aid will separate and does not have a new name yet.

What else is happening? J&J’s announcement comes days after General Electric initiated a split into three companies. Pfizer and Merck previously divided their sections as well, and analysts say this might spell the end of massive conglomerates that are difficult to manage. J&J executives said the split has nothing to do with an ongoing lawsuit that alleges Johnson’s Baby Powder causes ovarian cancer.

Dig deeper: Read John Dawson’s report on claims of blood clotting from Johnson & Johnson’s COVID-19 vaccine.