👉 Background: Johnson & Johnson is like the Swiss Army knife of healthcare:

• They own a consumer-health business—brands like Band-Aid, Benadryl, Neutrogena, J&J's baby powder, and so much more
• They own a whole heap of prescription drugs and medical device tech

👉 What happened: Early this year, J&J decided to split off its consumer healthcare business into a new publicly traded company called Kenvue. Kenvue IPO'd at a valuation of $40 billion USD and since then, Johnson & Johnson has sold off 80% of their shares... or around $32 billion USD.

👉 What else: J&J now have a whole lot of cash to reinvest in the growth of pharmaceuticals and medical devices... or even strategic acquisitions.

What's the key learning?

💡A strategic acquisition is when a company buys another company with the aim of achieving long-term strategic benefit.

💡These acquisitions are often faster and less risky than developing new products or services from scratch... particularly in the biotech market where the success rate is very low.

💡In J&J's case, they are focusing on acquiring companies with scientific expertise that align with their existing businesses. And, this is just another reminder how serious the new J&J is about drugs and medtech over cough medicine.  

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