Johnson & Johnson reveals 2025 sales forecast and plans for its orthopedics business

Core Insights - Johnson & Johnson raised its 2025 sales forecast to $93.5 billion to $93.9 billion, exceeding previous estimates and analysts' expectations [1][2] - The company plans to spin off its orthopedics business into a standalone entity named DePuy Synthes within 18 to 24 months, marking its second major spinoff since 2023 [2][3] - The orthopedics unit generated approximately $9.2 billion in revenue last year, accounting for about 10% of total revenue [2] Financial Performance - In the third quarter, Johnson & Johnson reported sales of $23.99 billion, surpassing Wall Street expectations of $23.75 billion [5] - Adjusted earnings per share were $2.80, exceeding analyst expectations of $2.76 [5] - Pharmaceutical sales increased by 6.8% year-over-year to $15.56 billion, slightly above analysts' estimates of $15.42 billion [5][6] Business Strategy - The company aims to focus on high-growth, high-margin areas such as oncology, immunology, neuroscience, surgery, vision care, and cardiovascular [3] - The CFO indicated that the separation of the orthopedics business could be executed as a tax-free spin-off, while remaining open to other options [3][4] - Despite the profitability of the orthopedics business, the company believes that future innovation in this area may be better suited elsewhere [4]