Johnson & Johnson: Successful Spin-Off – What Now? After the successful spin-off of Johnson & Johnson, the question arises: what comes next? With the separation of its consumer health business, the healthcare giant is now focusing on its pharmaceutical and medical device segments. The spin-off, which was completed on September 10th, is expected to bring significant benefits to both the newly formed company and Johnson & Johnson. The consumer health business, now known as „Johnson & Johnson Consumer Inc.“, will have more flexibility to pursue its own growth opportunities, while Johnson & Johnson can focus on its core strengths in pharmaceuticals and medical devices. This strategic move also allows the company to better allocate resources and investments, as well as streamline its operations. The spin-off is seen as a positive step towards driving long-term growth and creating value for shareholders. However, the success of the spin-off also brings new challenges. Johnson & Johnson must now navigate the competitive landscape of the consumer health market on its own, while also ensuring a smooth transition for its former employees who are now part of the new company. In addition, the pharmaceutical and medical device segments of Johnson & Johnson will face increased pressure to maintain their strong performance and continue driving innovation. Overall, the successful spin-off of Johnson & Johnson marks a new chapter for the company, with both opportunities and challenges ahead. Only time will tell how this strategic move will impact the healthcare giant and its stakeholders.

Last Updated: 14. Februar 2024By

You may be wondering about the sharp increase in profits for Johnson & Johnson in 2023 in the following graphic. It is worth taking a closer look and drawing conclusions.

Special effect: successful spin-off! The big player in the global healthcare market brought its consumer segment, with well-known brands like Nicorette, Immodium, and Neutrogena, to the stock market last year under the name Kenvue, but still holds ten percent of the shares. The deal brought in 4.3 billion USD. Of course, this will not be repeated in the following years, but the forecasts still speak for a growth in profits compared to before the spin-off.

Company development of Johnson & Johnson; Source:

Johnson & Johnson has reinvested some of the money and put 2 billion on the table for Ambrx Biopharma Inc. The biotech company focuses on antibody-drug conjugates for personalized cancer therapies.

Technical analysis check for Johnson & Johnson The stock is moving in an overall sideways range. After the results of the fourth quarter of 2023, the stock reacted with a gap down. In fact, the numbers were not as bad, so the bears may have been a little overzealous. For long trades, you should wait for a stabilization at the current level after the slightly stronger candles of the last few days. A sector rotation in favor of the long-struggling pharmaceutical stocks could provide the necessary tailwind.

Johnson & Johnson stock (ISIN US4781601046) – 1 year in daily chart; Source:

Conclusion Johnson & Johnson has been one of the top stocks in the pharmaceutical sector for a long time. Thanks to the spin-off of the consumer segment, the company has the necessary means for further interesting acquisitions.