Johnson & Johnson plans to split into drug and consumer companies

Johnson & Johnson (J&J) shares rose after the maker of cancer treatments, mouthwash and Tylenol said it will break itself up into two public companies, one focused on drugs and medical devices, and the other on consumer products.

The health-care giant will split off its consumer division in 18 to 24 months, the company said in a statement. The unit has been beset by lawsuits involving products such as baby-powder, which has been linked to ovarian cancers in some users. J&J shares gained 2.7 per cent in trading before US markets opened.

J&J’s pharmaceutical arm has long been its strongest performer. The