Why a Johnson & Johnson Split Would Boost Growth

Johnson & Johnson (NYSE:JNJ) is not able to derive full value from its three businesses, which are significantly underperforming in comparison to rivals. The conglomerate structure of the company is dragging down its overall growth. It has been widely suggested that the management should consider a split, since the estimated combined value of the three businesses, calculated separately, happens to be far greater than the current value of the company.

J&J currently boasts three main business segments: Consumer Care, Pharmaceuticals, and Medical Devices.

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