Kenvue Inc, formerly known as Johnson & Johnson Consumer Health, has started a new innings as its Initial Public Offering debuted on the New York Stock Exchange.
Popular brands including Band-Aid. Neutrogena, Listerine and Johnson’s baby products, are now housed under Kenvue, but it is unclear if these products will undergo an overhaul in branding as well.
The move to park consumer health under a different roof, comes even as J&J faces an estimated $9 billion dollar settlement in a law-suit, involving its baby talc and alleged links to cancer. A link the healthcare major has denied.
Meanwhile, Kenvue, said to be the world’s largest consumer health company by revenue, debuted on the NYSE at $25.53, foreign media reports said, above the original IPO price of $22 a share.
Thibaut Mongon, Kenvue Chief Executive said in a statement, “As a global leader at the intersection of healthcare and consumer goods, our carefully curated portfolio of science-backed, iconic brands has been trusted by consumers and recommended by healthcare professionals for generations.” J&J would hold 91 percent in Kenvue, post IPO, the company had said ahead of its listing on Thursday.
The J&J move to spin-off its consumer health business, echoes similar moves by GlaxoSmithKline and Pfizer, for example. Although, J&J’s circumstances are quite different.
Another J&J subsidiary, LTL Management LLC (LTL - that handles the cancer-linked claims) had re-filed for voluntary Chapter 11 bankruptcy protection to obtain approval of a reorganization plan to resolve all claims arising from the talc litigation against the company and its affiliates in North America, it said. But media reports this week said, the company has been ordered to engage in further settlement talks with those opposing the present offer.
India outlay
A road-map for the business division in India has not been publically outlined. The company officials did not provide details citing US market regulations.
In September 2022, while announcing the international division of businesses, J&J had said, Kenvue will become a standalone leading global consumer health company in 2023, subject to legal requirements.
“Usage of the new company logo and corporate brand identity will be effective upon completion of the planned separation,” it had said. The consumer health segment had generated revenue of $14.6 billion in the full-year 2021. Following the separation, Kenvue would generate sales in over 100 countries, it added.