Johnson & Johnson Appoints Larry Merlo as Non-Executive Chair Designate of Planned New Consumer Health Company

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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