Johnson & Johnson announced Wednesday that the current chief and chief financial officer of its consumer health product portfolio will lead the company when it transforms into a separate publicly traded company in 2023.
Thibaut Mongon, the current leader of the consumer health industry, will become CEO of the standalone company and Paul Ruh will remain in his current role as chief financial officer. Mongon has been J&J’s consumer health leader since 2019 and Ruh has been CFO since 2017.
Executive Chairman Alex Gorsky said J&J conducted an external executive search, but decided Mongon and Ruh were better equipped to lead the standalone company.
J&J announced in November that it would separate the consumer health business from its rapidly growing medical devices and pharmaceutical portfolios.
The consumer health sector produces common household products and over-the-counter medicines such as Tylenol, Band-Aid, Listerine, Neutrogena, and Aveena for Johnson’s skin care and baby products.
Consumer health care product sales grew 4.1% to $ 14.6 billion in 2021, while J&J pharmaceutical sales grew 14.3% to $ 52 billion and medical device sales grew nearly 18% to $ 27 billion last year.
In the first quarter of this year, sales of consumer health products fell 1.5% to $ 3.59 billion compared to the same period in 2021, due to supply constraints of ingredients and materials. packaging, especially for its skin health and beauty products. However, Joe Wolk, CFO of J&J, said the demand for over-the-counter drugs like Tylenol and Motrin is strong.
The consumer health industry has faced tens of thousands of lawsuits in recent years that its baby talcum powder contained carcinogenic asbestos. J&J created a subsidiary which was declared bankrupt to resolve complaints. The company stopped selling talcum powder in the North American market in 2020, but still sells it in other parts of the world.