What does J&J's split mean for the medical device business?

The analysts added that separating the consumer group may also help grow margins as the unit dilutes overall operating margins, with consumer health "in the teens range vs. Pharma and Medical Devices which deliver peak margins in the high-20s and low-30s."

Stifel analysts agreed, writing in a Friday report that it "seems clear that absent the lower-growth consumer business, the new JNJ should show consistently higher top-line growth."