On Tuesday, 3M made the announcement that it intends to create a new publicly listed company out of its health care division.

The material science firm said in a statement that the new business would concentrate on the wound and dental care, healthcare information technology, and biopharma filtration.

The news was revealed concurrently with 3M’s earnings release for the second quarter.

3M CEO has to say

CEO Mike Roman explains the rationale for the company’s decision to separate its healthcare operations.

The new firm will concentrate on the wound and dental care, healthcare information technology, and biopharma filtration, the company that specializes in materials science said in a statement. This includes items such as the company’s bandages, skin adhesives, mouth aligners, air purifiers, and optical lenses.

New Additions

In addition, the business sells a surgical warming device called the Bair Hugger, which is at the center of approximately 6,000 legal complaints at the moment. 3M argues that there is no connection between the product and surgical-site infections.

In 2021, sales of health care items manufactured by 3M were more than $8 billion. The deal is not scheduled to close until the latter part of the following year, at which point 3M will continue to own a 19.9 percent interest in the newly formed business.

The news was revealed concurrently with 3M’s earnings release for the second quarter. According to the consensus projections provided by Refinitiv, the firm exceeded analyst expectations by reporting adjusted profits per share of $2.48 on sales of $8.7 billion, whereas those forecasts were for $2.42 per share and revenue of $8.58 billion respectively.

The company’s stock was trading almost 4% higher before the market opened.

The company is now in the process of spinning off its food safety division. This division will combine with Neogen, and by September, it is anticipated that it will be sold off.

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