Former President and CEO of CVS Health, Merlo
Will Assume Board Leadership Role with the New Consumer Health
Company and Support Preparations for the Planned Separation,
Expected to Occur in 2023
Johnson & Johnson (NYSE: JNJ) today announced the
appointment of Larry Merlo as Non-executive Chair Designate for the
future, listed New Consumer Health Company’s Board of Directors.
Merlo previously served as President and CEO of CVS Health and
brings over 30 years of purpose-driven and transformative health
leadership to the Board for the planned new company.
As announced in November 2021, the planned separation would
create two global leaders – the new Johnson & Johnson and the
New Consumer Health Company – both better positioned to deliver
improved health outcomes for patients and consumers through
innovation, pursue more targeted business strategies and accelerate
growth.
Today’s announcement follows the appointment of Thibaut Mongon
as Chief Executive Officer Designate in May 2022.
Merlo will formally assume the role as Non-executive Chair upon
completion of the planned separation, expected to occur in 2023
subject to legal requirements including consultation with works
councils and employee representatives, as required. Additional
Directors will be determined and announced in the coming months as
the planned separation process progresses.
Alex Gorsky, Executive Chairman of Johnson & Johnson shared,
“On behalf of the Board, I am pleased to welcome Larry as Chair
Designate of the planned New Consumer Health Company. A
purpose-driven leader, Larry’s experience in the fast-paced health
retail sector will be a strong asset to the leadership team as they
unlock value and deliver for consumers as a standalone
company.”
“It is an exciting time for the business and the industry at
large,” said Larry Merlo, Chair Designate for the planned New
Consumer Health Company. “With an iconic portfolio of consumer
health brands, legacy of scientific rigor, category-creating
innovation, and a digital-first mindset, there is no doubt that the
planned New Consumer Health Company will be an industry force. I
look forward to being part of this journey with Thibaut and the
leadership team and making a positive impact on the health and
wellness of over one billion people around the world that rely on
these products every day.”
“Throughout his career, Larry has placed the health and wellness
of people first,” added Thibaut Mongon, Executive Vice President
and Worldwide Chairman of Consumer Health at Johnson & Johnson
and CEO Designate of the planned New Consumer Health Company.
“Larry’s in-depth knowledge of health and consumer trends, combined
with his values-based leadership approach, are aligned with our
commitment to help improve the personal health of people around the
world. I look forward to our partnership as we work towards the
planned separation and set the course for the future of Consumer
Health.”
About Larry Merlo
Larry Merlo served as President and CEO of CVS Health from 2011
to 2021, overseeing a decade of purpose-driven transformation.
Under his leadership, the company completed multiple successful
acquisitions, creating a diversified health services company and
delivering significant growth.
Merlo previously served as a board member for CVS Health,
America’s Health Insurance Plans (AHIP), National Association of
Chain Drug Stores (NACDS), the Partnership for Rhode Island and
Business Roundtable. He also serves on the University of Pittsburgh
Board of Trustees and formerly chaired the Research &
Innovation Committee. He is a graduate of the University of
Pittsburgh School of Pharmacy.
A values-based leader, Merlo was recognized by President Barack
Obama during the 2015 State of the Union address for the company’s
apprenticeship programs and workforce initiatives that build
non-traditional talent pipelines.
About the Planned Separation of the
Consumer Health Business
As previously announced, the planned separation is expected to
create value for all stakeholders by aiming to achieve the
following key goals:
- Increase management focus, resources, agility and speed to
effectively address differing industry trends and to better meet
the needs of the new Johnson & Johnson and the New Consumer
Health Company patients and consumers;
- Further focus capital allocation based on the objectives of
each independent company;
- Provide each company with a compelling financial profile that
more accurately reflects the strengths and opportunities of each
business and, as a result, offers investors a more targeted
investment opportunity; and
- Align corporate and operational structures so each company is
better able to drive growth and value creation.
The New Consumer Health Company would be a leading global
consumer health company, touching the lives of over one billion
consumers around the world every day through iconic brands such as
NEUTROGENA®, AVEENO®, TYLENOL®, LISTERINE®, JOHNSON’S®, and
BAND-AID® and continuing its legacy of innovation.
The new Johnson & Johnson would remain the world’s largest
and most diverse healthcare company and continue its commitment to
lead in global healthcare Research & Development, with a
portfolio that includes strong Pharmaceutical and Medical Device
capabilities focused on advancing the standard of care through
innovation and technology.
About Johnson &
Johnson
At Johnson & Johnson, we believe good health is the
foundation of vibrant lives, thriving communities and forward
progress. That’s why for more than 130 years, we have aimed to keep
people well at every age and every stage of life. Today, as the
world’s largest and most broadly-based healthcare company, we are
committed to using our reach and size for good. We strive to
improve access and affordability, create healthier communities, and
put a healthy mind, body and environment within reach of everyone,
everywhere. We are blending our heart, science and ingenuity to
profoundly change the trajectory of health for humanity. Learn more
at www.jnj.com. Follow us at @JNJNews.
Cautions Concerning Forward-Looking
Statements
This release contains “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995 regarding,
among other things: the anticipated separation of Johnson &
Johnson’s Consumer Health business; future operating and financial
performance, product development, market position and business
strategy. Readers are cautioned not to rely on these
forward-looking statements. These statements are based on current
expectations of future events. If underlying assumptions prove
inaccurate or known or unknown risks or uncertainties materialize,
actual results could vary materially from the expectations and
projections of Johnson & Johnson. Risks and uncertainties
include, but are not limited to: Johnson & Johnson’s ability to
satisfy the necessary conditions to consummate the separation of
Johnson & Johnson’s Consumer Health business on a timely basis
or at all; Johnson & Johnson’s ability to successfully separate
Johnson & Johnson’s Consumer Health business and realize the
anticipated benefits from the separation; the New Consumer Health
Company’s ability to succeed as a standalone publicly traded
company; economic factors, such as interest rate and currency
exchange rate fluctuations; competition, including technological
advances, new products and patents attained by competitors;
challenges inherent in new product research and development,
including unexpected clinical trial results, additional analysis of
existing clinical data, uncertainty of clinical success and
obtaining regulatory approvals; uncertainty of commercial success
for new and existing products; the impact of business combinations
and divestitures; challenges to patents; the impact of patent
expirations; the ability of Johnson & Johnson to successfully
execute strategic plans, including restructuring plans;
manufacturing difficulties or delays, internally or within the
supply chain; product efficacy or safety concerns resulting in
product recalls or regulatory action; significant adverse
litigation or government action, including related to product
liability claims; changes to applicable laws and regulations,
including tax laws, global health care reforms and import/export
and trade laws; trends toward health care cost containment; changes
in behavior and spending patterns of purchasers of health care
products and services; financial instability of international
economies and legal systems and sovereign risk; increased scrutiny
of the health care industry by government agencies. A further list
and descriptions of these risks, uncertainties and other factors
can be found in Johnson & Johnson’s Annual Report on Form 10-K
for the fiscal year ended January 2, 2022, including in the
sections captioned “Cautionary Note Regarding Forward-Looking
Statements” and “Item 1A. Risk Factors,” in Johnson & Johnson’s
most recently filed Quarterly Report on Form 10-Q and in Johnson
& Johnson’s subsequent filings with the Securities and Exchange
Commission. Copies of these filings are available online at
www.sec.gov, www.jnj.com or on request from Johnson & Johnson.
Any forward-looking statement made in this press release speaks
only as of the date of this press release. Johnson & Johnson
does not undertake to update any forward-looking statement as a
result of new information or future events or developments.
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