3M announced on Tuesday that it will spin off its health-care business into a separate publicly traded company. The new entity will focus on wound and oral care, health-care IT, and biopharma filtration, encompassing products such as bandages, skin adhesives, oral aligners, air purifiers, and optical lenses. This strategic move is expected to be completed by the end of next year, with 3M retaining a 19.9% stake in the newly formed company. The spin-off announcement coincided with the release of 3M's second-quarter earnings report, which showed mixed financial results. Second-quarter revenue fell nearly 3% to $8.7 billion, while net income dropped significantly to $78 million from $1.5 billion a year earlier due to a $1.2 billion pretax charge related to Combat Arms Earplugs litigation. However, excluding this one-time charge, the company earned $2.48 per share, topping analyst expectations of $2.42. 3M's health-care division recorded more than $8 billion in sales in 2021. The portfolio includes the Bair Hugger surgical warming system, which is currently the subject of nearly 6,000 lawsuits, though 3M maintains the product has no relation to surgical-site infections. Additionally, 3M is simultaneously spinning off its food safety business, which will merge with Neogen and is expected to be divested by September. Following the earnings release and spin-off announcement, shares of 3M closed up 5% at $140.82. The company also noted that Aearo Technologies, the subsidiary producing Combat Arms Earplugs, filed for Chapter 11 bankruptcy proceedings to establish a trust to resolve all legal claims related to the product.