J&J plans to spin out orthopedics business

Core Insights - Johnson & Johnson plans to spin out its orthopedics business, creating a standalone company named DePuy Synthes, to enhance focus on higher-growth and higher-margin markets [2][4] - The spinout is expected to occur within the next 18 to 24 months and aims to position J&J as a leader in healthcare innovation [2][5] - The orthopedics unit generated approximately $9.2 billion in sales for fiscal year 2024, with a slight year-over-year revenue decline of 0.3% in the first nine months of 2025 [4] Business Strategy - The decision to separate the orthopedics unit is part of a broader strategy to shift J&J's medtech portfolio towards areas with greater unmet needs, such as cardiovascular and robotic surgery [2][5] - The CEO emphasized that the spinout would create the largest and most comprehensive orthopedics company in the medical device sector, benefiting from a more focused strategy [3][5] - J&J's medtech unit will consist of its cardiovascular, surgery, and vision businesses post-spinout [5] Market Context - The planned spinout follows a trend in the medical device industry, as evidenced by Medtronic's recent announcement to separate its diabetes business into a standalone entity [6]