J&J spins off orthopaedics business against positive Q3 backdrop

Core Viewpoint - Johnson & Johnson (J&J) plans to separate its orthopaedics business into a new stand-alone company named DePuy Synthes, despite modest growth in the unit, which grew 2.4% this quarter [1][3] Group 1: Business Strategy - The separation aims to prioritize J&J's portfolio and focus on high-growth markets, leaving the company concentrated on its pharmaceutical and remaining MedTech segments [2][4] - The company expects the split to enhance topline growth and margins while facilitating focus on cardiovascular surgery, vision, and robotics [3] Group 2: Financial Performance - J&J reported a 6.8% increase in sales to $24 billion in Q3 2025, driven primarily by its innovative medicine portfolio, which constituted 64% of reported sales [5] - The company has a market cap of $452 billion, with significant contributions from oncology products like Darzalex and Erleada, generating $3.6 billion and $936 million, respectively [6] Group 3: Future Outlook - The separation process is expected to take 18 to 24 months, with Namal Nawana set to lead the new orthopaedics company, which J&J claims will be the largest and most comprehensive in the world [3]