A few years ago, Goldman Sachs had suggested that Johnson & Johnson split into three and split the operation; but stubborn Johnson refused the proposal. A few years later, Johnson & Johnson faced this pressure again, and the major shareholders were putting pressure on the company, urging the American giant to consider the spin-off. According to reports, major shareholder Artisan has asked Johnson & Johnson's management to consider splitting the company into three separate companies – consumer products, pharmaceuticals and medical devices – each with a value of more than $90 billion. Investment company Artisan currently manages nearly $100 billion in assets and is one of Johnson & Johnson's major shareholders. In addition to urging Johnson & Johnson to split into three, Artisan also recommended that the company replace board members to review executive compensation standards and financial reports. Artisan said in a document last year that every major business of Johnson & Johnson is clearly behind the competition in the competition, which should be attributed to the opacity of the company's financial reports and the defects of executive compensation. On the other hand, in the current pharmaceutical industry, as competition intensifies, more and more companies are “slimming†through spin-off or divestiture, focusing on a few areas with competitive advantages. For example, in 2006, Pfizer, the same pharmaceutical giant, sold its consumer products business to Johnson & Johnson for $17 billion, focusing on the pharmaceutical business. Now, Pfizer is considering divesting the generics business. This environment has increased the pressure on Johnson & Johnson. Johnson & Johnson is located in the plant in Lititz, Pennsylvania, and Li Shi Delin mouthwash is on the production line. A Johnson & Johnson spokesperson declined to comment on the news, saying the company will answer these questions at the investor meeting on Tuesday. Being pressured and split, this is not the first time In the business world, splitting a large company into several independent small companies is often praised by shareholders because it often increases the value of shares held by shareholders. In other words, it is 1+1>2. As a giant, Johnson & Johnson has long been the target of increasing profits for major shareholders. 2012. The Goldman Sachs Group has suggested that Johnson & Johnson be split into three companies, and like this one, it is also consumer products, pharmaceuticals and medical devices. Goldman Sachs said at the time that the split could give Johnson & Johnson a higher return. At that time, Johnson & Johnson's share price was $62 per share. Goldman Sachs set a conservative target price for the spin-off Johnson: $76, and said that each independently operating company may generate more growth after the spin-off. Of course, everyone knows the final result. Johnson & Johnson, the 130-year-old giant did not adopt Goldman Sachs' opinions and stubbornly went on his own way. Today, Johnson & Johnson's share price has reached as high as $104, more than three years ago, Goldman Sachs suggested that it was nearly 70% higher when it was split. However, this time the situation has changed. Last Tuesday (January 26) Johnson & Johnson just released its fourth-quarter earnings report, which was better than expected. Since the company's pharmaceutical business revenue surpassed medical devices two years ago, this advantage has continued to expand thanks to Remicade and Stelara. Excluding the impact of the exchange rate, last year's drug revenue rose 4.2%. However, competition for biosimilar drugs has arrived. In Europe, Johnson & Johnson's best-selling drug-like imitations have been approved for marketing, and in the US, the drug's patents will expire in 2018. The company’s $742 million autoimmune drug, Stelara, is also about to face market competition. On the other hand, the medical device business is still in a slump. Earlier, the company announced a restructuring of the troubled medical equipment sector, layoffs of 3,000 people, saving new areas of cash investment. Last year, revenue from this business fell by 1.4%. The consumer product business is still recovering due to quality problems in the previous period. Johnson & Johnson's OTC drugs began to return to the shelves of European and American pharmacies. In 2015, the business's revenue increased by 2.7%. In the future, in addition to Johnson & Johnson Baby Care, Neutrogena and Li Shi Delin, some new brands may be needed to boost revenue. Two years ago, Johnson & Johnson's pharmaceutical business revenue surpassed medical devices YT-T15 YT-T15 Shenzhen Sunshine Technology Co.,Ltd , https://www.yatwinsz.com
