Johnson & Johnson is to spin off its consumer products division, best known for Band-Aid plasters and baby shampoo, as the world’s largest healthcare company seeks to focus on pharmaceuticals and medical devices.

The division, which generated $14bn in sales last year, will be split off in 18 to 24 months, most likely via a stock offering. The company plans to make the transaction tax-free and keep the overall dividend at the same level.

Alex Gorsky, J&J’s chief executive, said the planned separation is “the best way to accelerate our efforts to serve patients, consumers, and healthcare professionals, create opportunities for our talented global team, drive profitable growth, and — most importantly — improve healthcare outcomes for people around the world”.

Gorsky is starting the process before he hands over the reins to his successor Joaquin Duato at the start of next year. Duato, vice chair of the executive committee, is Gorsky’s long time protégé, and has been at the company for three decades.

J&J is following many other large pharmaceutical companies that have shed their consumer divisions, including GSK and Pfizer, which formed a joint venture from their consumer health units that they plan to spin off in the middle of next year. The pharmaceuticals industry is moving towards more slimmed down companies focusing on innovation, including high- priced specialist drugs.

Gorsky said the separation would allow J&J to focus on “delivering industry-leading biopharmaceutical and medical device innovation and technology” and said the new consumer health company would be “a global leader across attractive and growing consumer health categories”.