After the healthcare giant announced that it would split itself into two listed companies, Johnson & Johnson’s stock price rose in pre-market trading.
The new company will include one focusing on consumer products, such as bandages and baby powder, and another focusing on prescription drugs and medical equipment.
After the announcement, Johnson & Johnson’s stock price rose by more than 4% in pre-market trading.
Johnson & Johnson is already undergoing a major transformation, as CEO Alex Gorsky previously announced that he will step down in January. The company said on Friday that Joaquin Duto, appointed as Gorski’s successor, will lead the new Johnson & Johnson company after the spin-off.
In addition, the company said it plans to “maintain at least the same level” of its total dividend after the change. Johnson & Johnson’s current dividend yield is about 2.6%.
This is the second time a major American company has announced a spin-off plan after General Electric this week.
The news was first reported by The Wall Street Journal.
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