Why The Biggest Pharma Company In The U.S. Is Breaking Up
Why The Biggest Pharma Company In The U.S. Is Breaking Up
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.
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
Why The Biggest Pharma Company In The U.S. Is Breaking Up
They are breaking up into two companies: Johnson and Johnson.
I thought johnson was fighting johnson and then they would be johnson and johnson lol
I don’t understand business. Do I understand correctly that this company created a shell company to absorb the lawsuit and die with it? Is that what will happen or is happening?
Khalid35
Split into Johnson1 and Johnson2
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??
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?"
I don’t trust the Johnson and Johnson stock. It’s not as strong as they want us to believe
The only they should spit is the double J.
I never knew Johnson Johnson was a pharmacy company
Help.. promises guaranteed
For shareholders*
*Thanks for this great video, i must say it’s really helpful. I was leaving on average financial income until i invested with a professional broker (Stella Louis) Life have been better afterwards.*
CNBC is just a big business propagandist
Johnson & Johnson to J&J.
Lol… They doing this because of baby powder. Don’t twist the reason.
their vaccine is good even its 1 jab
There can be only one Johnson, what’s the other one going to be called, Vajayjay?
Hope this doesn’t negatively affect anyone, ex. consumers.
vaccines law suits coming
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
https://www.youtube.com/watch?v=waEglmyG6Io&t=494s Draghi on TVL Great Reset and Big Pharma
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.
It amazing me how ☝️ works my bitcoin hack just came in my wallet now
finally …should brak down and dissapear
😋 P r o m o S M.
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.
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!!!
It’s cause of the baby powder lawsuit😩
I stand with Johnson not Johnson
So they can just carry on selling their poisoned luxuries and the future ppl wont know its the same company.
I am completely cured with no sides effect i used #Druromi herbal medication
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.
Wonder what Jamie Johnson is up to these days… He did some decent documentary films back in the day.
They are still selling baby powders in India and other developing countries. This is some Nestle level evil stuff.
How is it legal to create some shell company with the intention to go bankrupt and shed all those legal liabilities?
They know lawsuits over the jab are coming a red wave is coming and investigations will ensue
BECAUSE THEY LIED ABOUT THE NO TEARS!!!
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
Jhonson and jhonson is the devil
Their new name – Johnson and the other Johnson
Investing in cryptocurrency is the best way of
getting ahead to build wealth, investing remains a
priority. The Cryptocurrency market has plenty of
opportunities to earn a decent payouts, with the
right skills and proper understanding of how the
market works, I pray that anyone who reads this
will be successful in life..
*cough cough* LAWSUITS *cough cough*
Why? Money. Simply money. The individual parts are worth far more than the sum of the parts. VW Group is doing the same by spinning off Porsche. There be big money out there and legacy corporations don’t have the sizzle that new start ups do
well deserved! its gonna be the same name for both firms lol
so you’ll get confused which johnson put cancer on your armpit
Why? Survival!
And other large companies don’t want to split vat buy
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