Johnson & Johnson plans to split into two public companies

Going haywires! With healthcare evolving J&J follows a similar suit to GE and decides to split into two preferably due to pressures from Pfizer and Merck who decided to hive off their consumer business. It’s a bit surprising since analysis shows that the prescription-drug business is high margin though unpredictable, and the medical-device business is slowly growing.

The consumer unit’s sales rose 1.1% to $15 billion last year, after a growth of 0.3% the previous year. In contrast, J&J’s pharmaceutical unit posted a sales growth of 8% last year and 3.6% the previous year.

That’s something to ponder upon! Here’s the YoY change.

One more thing to think about is that many people have pointed out with the likes of Morgan Stanley pointing to something similar - that is to avoid inflation burning holes into your investments one should diversify into consumer products.

Given the different potential year-end economic scenarios—stronger growth vs. economic slowdown—we think that investors might want to consider cutting passive index exposure in favor of the barbell approach, with cyclicals on one end and defensive stocks on the other.

Consumer Confidence Falls: Markets Unfazed? | Morgan Stanley

Here’s the General Motors thread:
General Electric splits into 3 public companies - What’s Hot :fire: - Vested Community