Johnson & Johnson, the biggest pharmaceutical company in the U.S. based on its market cap, announced in November 2021 it plans to spin off its consumer business into a new publicly-traded company by November 2023. Analysts overwhelmingly say it’s a smart business move, but it could also come with some risks. Watch the video above to learn why Johnson & Johnson is splitting itself up and how investors are reacting.
Johnson & Johnson announced in November that it plans to spin off its consumer business into a new publicly traded company by November 2023.
The news didn’t surprise Wall Street.
“The analyst community has been talking about splitting up J&J for years,” said Jared Holz, health-care equity strategist at Oppenheimer. “The timing situation is critical, just because people have been very curious or intrigued as to why now.”
Johnson & Johnson is the biggest pharmaceutical company in the United States based on market cap. It was ranked 36th on the 2021 Fortune 500 List of the largest U.S. corporations based on total revenue. The company has experienced dividend growth for nearly 60 years and has consistently outperformed the S&P 500 for the past 25 years.
“What the market is saying is that companies should focus on their core competencies and let us diversify,” said Louise Chen, managing director at Cantor Fitzgerald. “We’ve already seen several examples of large pharma separating out noncore assets.”
So far, investors’ reaction to the spinoff has been mild, with the stock moving only modestly higher on the news in November.
“There are some risks to this execution from separating out the consumer business,” Chen said. “I think investors aren’t fully convinced yet of the standalone earnings potential of both companies.”
There are other potential headwinds to the split. The company has been dealing with numerous legal challenges over the past several years, many of which are ongoing and could result in as-yet-unknown fines and settlements.
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Why The Biggest Pharma Company In The U.S. Is Breaking Up
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Cant blame Big Pharma for pain. People hurt themselves big Pharma tried to provide pain relief, People looking for a blame so they don't need to work so hard. Blame problems on drug addiction when that was not thee original problem pain is. Someone gets in a car accident crushes their bones because they were caught up in a snow storm or hurricane or flood, they oh, I feel so bad this hurts, help me please.
RAS HOUSE MUSIC 🎶 LABORIE BEACH ⛱️ ST LUCIA
it would be nice if congress would PASS THE SACKLER ACT and take care of the women in the united states who are suffering from cancer caused by JNJ!!! The american cancer society has validated a 30% higher chance of getting ovarian cancer when using talc and the text two steps should be illegal!!!! they absolutely have known since 1957 – the battelle memorial institute told them!! WL Smith gave a report stating that their italian talc had tremolite asbestos * as one will find in any talc mine*- this is all in records and the fact that johnson and johnson lies is just part of their brand which is becoming synonymous with killing women and offering a low ball amount. 8.9 billion in 2023 is way less than 200 billion which was offered by philip morris in the tobacco MSA – this was way before today's inflation! and at least Philip morris had a poison label on the package! violation of The Poison Prevention Packaging Act probably the TSCA as well !! 9 billion for 40,000 women and their lawyer take 40%, and this is before tax?!? so you can destroy a womans life and reproductive organs at a discount if they survive at all!! outrageous
I'm from India
The J&J company open a branch in Mumbai
Many people invest in the company like 17500 Indian Rupee
You Americans know it ??
Please answer me.
I'm a poor man invest their company.
Is it fraud???
Bioinitiative
How these people are justifying this scam. It was just a shell company to transfer the liabilities of court cases against it. Every person in this video is talking about businesses prospective. Not revealing the true facts.
So they can just carry on selling their poisoned luxuries and the future ppl wont know its the same company.
JnJ has lots of legal action pending…what have they done with that part of their company? And will declaring bankrupsy of this company be the play to offset this problem ???..ALSO…where do JnJ manufacture their products??
Jhonson and jhonson is the devil
I feel like the last couple of presidents either one were mentally intelligent to make the executive orders the people with money wanted and there is a war on Americans. Of capitalism and ignorance that is killing us. How come no one has done anything to protect people in pain from a communist take over of depriving medication ? How come the people are so powerful the weak and suffering have no legal rights.
America is going to pay for being dumb over blaming pills for addiction. They have just bright medical care backwards to third world care and it's not going to cure addiction. What people have done to patients who suffer in unbearable pain. Is absolutely unforgettable. Mixing main stream health care up curing addiction. It's unbelievable the ignorance and humanity crises this is on people who have chronic conditions. There doesn't seem to be anyone powerful enough to stand up to horrific on us. I have been through both addiction and chronic pain. It should be a crime mixing the two and not allowing doctors to treat patients as needed. One wonders if these people are on the same page as what Russia is fighting Ukraine over and Russia is behind confusing minds and giving ignorance power in USA to destroy USA. You can't stand to sit in the pain opioids is for. There is no lawyer or people standing up for people in pain. It's horrific.The war on pharma started with Obamacare but trump administration kept the same war. Look at the money these people are making. And they have a war against 12 step programs too that's saved alot of people's lives. So which agenda is whose. It's taking balance out of life for people to be treated as needed. God help us.
CNBC is just a big business propagandist
And other large companies don’t want to split vat buy
Why aren't all investors in J&J prosecuted under the RICO statute??
These talking heads are full of B$. Had a conglomerate decided to grow horizontally or vertically they wax about the wisdom.
When you think J&J think about drug addicted parents powdering their babies with asbestos, and after succumbing to the Standard American Diet of ultra processed food, held by the same asset managers, imagine those babies, those parents having faulty medical implants from J&J, in addition to being addicted as intoxicated by their novel gene manipulating chemotherapy.
RICO for investors and their pension funds and the captured government bodies and M$M, that enable all of it.
NBC, brought to you by fn felonious Pfizer and the Ga+e$ Foundation and its notorious vacs front groups.
Shut them down!!!
Their new name – Johnson and the other Johnson
Johnson & Johnson to J&J.
Split into Johnson1 and Johnson2
How is it legal to create some shell company with the intention to go bankrupt and shed all those legal liabilities?
Hope this doesn’t negatively affect anyone, ex. consumers.
Why? Survival!
Until COVID 19 I didn't even know they was a farmaceutical Company and I was like "whaaaaat? They can't even produce a decent shampoo! How am i supposed to trust them on medication?"
For shareholders*
Help.. promises guaranteed
Most of you who commented have no idea what you’re talking about. You just sound so goofy. After you read this, reread your comment lmao 🤣 like this if you agree and not a goofy
vaccines law suits coming
BECAUSE THEY LIED ABOUT THE NO TEARS!!!
I thought johnson was fighting johnson and then they would be johnson and johnson lol
well deserved! its gonna be the same name for both firms lol
I wonder if they were willing to split of courts were able to get money from both companies before split.
Also about talc, it had asbestos in it, since many talc rocks have trace amounts of it, hard to detect but just as deadly when used.
They know lawsuits over the jab are coming a red wave is coming and investigations will ensue
There can be only one Johnson, what's the other one going to be called, Vajayjay?
The execs at Johnson and Johnson and all the analysts in this video just keep saying. Yeah j and j has all these problems but they're not going to affect the stock and everything's fine don't worry. It's like they're in denial or like they don't want to admit that j and j is a ticking time bomb with serious issues that just keep compounding
I don't trust the Johnson and Johnson stock. It's not as strong as they want us to believe
finally …should brak down and dissapear
Johnson & Johnson will be split into Johnson and The Other Johnson.
With the amount I got on my bank account from ☝️ I was able to open a new store for my mom indeed this service paid quickly
I never knew Johnson Johnson was a pharmacy company
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