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.

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Why The Biggest Pharma Company In The U.S. Is Breaking Up


  1. BESTof on February 3, 2023 at 1:48 am

    They are breaking up into two companies: Johnson and Johnson.

  2. Wu on February 3, 2023 at 1:51 am

    I thought johnson was fighting johnson and then they would be johnson and johnson lol

  3. Shadow Heart on February 3, 2023 at 1:51 am

    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?

  4. Khalid Belhaj on February 3, 2023 at 1:51 am


  5. Yashesh Bharti on February 3, 2023 at 1:51 am

    Split into Johnson1 and Johnson2

  6. Gia Holman on February 3, 2023 at 1:52 am

    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??

  7. Gabriela on February 3, 2023 at 1:54 am

    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?"

  8. Terry Terry on February 3, 2023 at 1:54 am

    I don’t trust the Johnson and Johnson stock. It’s not as strong as they want us to believe

  9. Sono fabitch on February 3, 2023 at 1:57 am

    The only they should spit is the double J.

  10. Kawaii Coded on February 3, 2023 at 1:57 am

    I never knew Johnson Johnson was a pharmacy company

  11. Zachary Mitchell on February 3, 2023 at 2:00 am

    Help.. promises guaranteed

  12. Zachary Mitchell on February 3, 2023 at 2:02 am

    For shareholders*

  13. Maureen O'Hara on February 3, 2023 at 2:02 am

    *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.*

  14. Bardvark on February 3, 2023 at 2:03 am

    CNBC is just a big business propagandist

  15. kakak jahil on February 3, 2023 at 2:03 am

    Johnson & Johnson to J&J.

  16. Hrishikesh Oemraw on February 3, 2023 at 2:03 am

    Lol… They doing this because of baby powder. Don’t twist the reason.

  17. Vecoinc on February 3, 2023 at 2:04 am

    their vaccine is good even its 1 jab

  18. James Johnson on February 3, 2023 at 2:05 am

    There can be only one Johnson, what’s the other one going to be called, Vajayjay?

  19. just a nobody on February 3, 2023 at 2:07 am

    Hope this doesn’t negatively affect anyone, ex. consumers.

  20. Tony Webb on February 3, 2023 at 2:07 am

    vaccines law suits coming

  21. Terry Terry on February 3, 2023 at 2:10 am

    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

  22. G D on February 3, 2023 at 2:11 am

    https://www.youtube.com/watch?v=waEglmyG6Io&t=494s Draghi on TVL Great Reset and Big Pharma

  23. taith2 on February 3, 2023 at 2:17 am

    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.

  24. Edna Suter on February 3, 2023 at 2:19 am

    It amazing me how ☝️ works my bitcoin hack just came in my wallet now

  25. Peoples Choice on February 3, 2023 at 2:19 am

    finally …should brak down and dissapear

  26. Conney Mcarthur on February 3, 2023 at 2:23 am

    😋 P r o m o S M.

  27. Doris Reynolds on February 3, 2023 at 2:24 am

    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.

  28. Madasin Paine on February 3, 2023 at 2:26 am

    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!!!

  29. Andra Manda on February 3, 2023 at 2:28 am

    It’s cause of the baby powder lawsuit😩

  30. Me Myself on February 3, 2023 at 2:29 am

    I stand with Johnson not Johnson

  31. Ingeborg Swieten on February 3, 2023 at 2:30 am

    So they can just carry on selling their poisoned luxuries and the future ppl wont know its the same company.

  32. Rana Hassan on February 3, 2023 at 2:31 am

    I am completely cured with no sides effect i used #Druromi herbal medication

  33. Doris Reynolds on February 3, 2023 at 2:34 am

    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.

  34. Ken Llàcer on February 3, 2023 at 2:35 am

    Wonder what Jamie Johnson is up to these days… He did some decent documentary films back in the day.

  35. AnkBusiness Channel on February 3, 2023 at 2:37 am

    They are still selling baby powders in India and other developing countries. This is some Nestle level evil stuff.

  36. GDC on February 3, 2023 at 2:39 am

    How is it legal to create some shell company with the intention to go bankrupt and shed all those legal liabilities?

  37. Sam Snyder on February 3, 2023 at 2:39 am

    They know lawsuits over the jab are coming a red wave is coming and investigations will ensue

  38. king james488 on February 3, 2023 at 2:39 am


  39. fffwe on February 3, 2023 at 2:39 am

    Johnson & Johnson will be split into Johnson and The Other Johnson.

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    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

  41. Chaera Bourlet on February 3, 2023 at 2:41 am

    Jhonson and jhonson is the devil

  42. TheGomezIndustries on February 3, 2023 at 2:42 am

    Their new name – Johnson and the other Johnson

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  44. waterbaby on February 3, 2023 at 2:43 am

    *cough cough* LAWSUITS *cough cough*

  45. John BEE on February 3, 2023 at 2:44 am

    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

  46. Koi Park on February 3, 2023 at 2:44 am

    well deserved! its gonna be the same name for both firms lol

  47. Ferrel on February 3, 2023 at 2:45 am

    so you’ll get confused which johnson put cancer on your armpit

  48. Butch Fajardo on February 3, 2023 at 2:45 am

    Why? Survival!

  49. Vipr the Red on February 3, 2023 at 2:46 am

    And other large companies don’t want to split vat buy

  50. Montra Media on February 3, 2023 at 2:48 am

    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