Johnson & Johnson (JNJ  ) is gearing up to use the proceeds from the recent separation of its consumer-health segment Kenvue Inc (KVUE  ) to bolster its growth in pharmaceuticals and medical technology.

This growth strategy could encompass new acquisitions, enhancement of product offerings, and a deeper dive into robotics.

The healthcare titan offloaded shares of Kenvue, the entity owning brands like Band-Aid and Tylenol.

This initial public offering enriched J&J's coffers by $13.2 billion. By August, J&J had divested almost 80% of its stake in Kenvue through a swap valued at around $40 billion.

This strategic move culminated in a vision set in 2019 and initiated in 2021, where J&J aimed at realigning its financial and operational components for such a division.

After this separation, J&J is redirecting its focus towards innovations within medical technologies and pharmaceuticals.

J&J might consider M&A targets with approved drugs and those nearing the final stages of their pipeline, the Wall Street Journal noted.

This strategy ensures continued growth, especially when their existing drugs near the end of their patent exclusivity.

J&J's divestiture of its Kenvue stake will lead to annual savings of more than $900 million in dividend expenses, Wolk added.

The firm is working on phasing out residual costs associated with its consumer sales. Wolk expects this process to wrap up by mid-next year, ahead of their projected timeline.

Price Action: JNJ shares are up 0.10% at $160.63 on the last check Tuesday.