Alex Gorsky, Johnson & Johnson's chief executive officer, told the public that the company made the decision primarily because consumer and market sentiment for the two parts of the business have become vastly differentiated in recent years, and the new crown outbreak has made the differences between the two parts even more pronounced.
According to Johnson & Johnson's third-quarter 2021 earnings report, the company reported sales of $23.34 billion for the quarter, compared with $21.08 billion for the same period in 2020, an increase of 10.7 percent. By business segment, sales in the Consumer Health segment were $3.7 billion, up 5.3% year-over-year; sales in the Pharmaceuticals segment were $12.994, up 13.8% year-over-year; and sales in the Medical Devices segment amounted to $6.64 billion, up 8% year-over-year.
The business spin-offs, which operate independently, underscore the fact that diversified mega-corporations are moving forward on a new strategy to simplify their structures and improve their business focus.