Core Viewpoint - Johnson & Johnson MedTech is transitioning its global business operations from a regional model to a business unit (BU) led structure starting January 1, 2026, to enhance competitiveness and value creation for customers and patients [1][4][10] Group 1: Reasons for Restructuring - The global medical device industry is undergoing significant changes, with advancements in precision medicine, minimally invasive surgery, digital health, robotics, and interventional devices, necessitating faster response times and localized compliance [3] - The traditional regional operational model of large medical device companies is seen as cumbersome and slow, hindering rapid innovation and global promotion [3] Group 2: Strategic Significance of the Restructuring - The divestiture of the orthopedic business DePuy Synthes, which previously accounted for nearly 30% of global MedTech revenue, allows the company to focus on high-growth areas such as cardiovascular, surgical, vision care, and interventional devices [4][10] - The new BU-led structure will enable faster resource allocation, enhance specialized operational capabilities, and improve product commercialization efficiency [4][9] Group 3: New Structural Arrangements - Each business unit will be responsible for its global business performance, managing everything from strategic planning to commercial execution [8] - Supply chain management will be centralized to improve global procurement and distribution efficiency [8] - Functional support departments will be restructured to align with the new BU-led operational model [8] Group 4: Expected Outcomes - The BU-led model will enhance operational efficiency and responsiveness, granting higher autonomy and decision-making flexibility to business units [9] - Resource allocation will become more concentrated and specialized, focusing on high-growth sectors [9] - Accelerated product innovation and global commercialization will be facilitated through closed-loop management from product design to global market launch [9] Group 5: Industry and Market Implications - This restructuring may serve as a trendsetter for other established medical device companies to adapt their structures in response to rapid technological and market changes [11] - The BU-led approach could shorten new product launch cycles, improving the accessibility of innovative devices and treatment solutions for hospitals and patients [11] - Increased competition dynamics may emerge in high-end interventional, digital health, and surgical device sectors, posing challenges for smaller innovative companies and new entrants [11]