Johnson & Johnson plans to split into two companies

Johnson & Johnson said on Friday that it is planning to break up into two companies.

Johnson & Johnson would split off its consumer health division that sells Band-Aids and Baby Powder from its large pharmaceuticals unit.

The healthcare company will separate its consumer health business into a new publicly traded company and is aiming to complete the planned separation in 18 to 24 months, it said in a statement.

J&J will retain its pharmaceuticals and medical device units, which sells drugs such as cancer treatment Darzalex. The units are expected to generate revenue of roughly $77 billion in 2021.

Shares of the company rose 5% before the bell.