Last year, pharmaceutical and consumer products giant Johnson & Johnson (NYSE:JNJ) first reported that it would be spinning off its medical and healthcare technology segment. Now, another blue-chip company, 3M (NYSE:MMM) is doing the same. Both companies will be splitting their company and stock into two different divisions at some point in the future.
The first question from investors is why? After decades of trading as a single entity, why spin-off the medical technology segment now? It is likely because the division has grown strong enough to be a stand-alone company. While some investors might be confused as to what this all means, just know that it is a bullish sign for those of you who are excited about the healthcare technology sector.
Other companies might follow in the footsteps of these industry leaders. But the best news is for up and coming healthcare technology companies like Well Health Technologies (OTC:WHTCF) and Ludwig Enterprises (OTC:LUDG) which recently made a strong pivot back to the field of healthcare technology. While its upcoming projects are shrouded in mystery, the company has revealed that more updates are on their way.
It is likely that Ludwig is just settling down after a major executive office shuffle has the company under the control of new CEO Anne Blackstone. With a ton of medical experience on the Board of Directors, keep an eye on Ludwig as a potential rising star in the industry once the company gets all of its ducks in a row.
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