NEW BRUNSWICK, N.J.–(BUSINESS WIRE)–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.
