Core Viewpoint - Johnson & Johnson announced plans to spin off its orthopedic business into a new independent company named DePuy Synthes within the next 18 to 24 months, aiming to enhance competitiveness and focus on core operations in response to market changes [1][2] Group 1: Company Strategy - The spin-off is part of a broader trend among major medical companies to restructure and focus on high-growth, high-margin areas such as oncology, immunology, neuroscience, surgical care, vision care, and cardiovascular sectors [2] - Johnson & Johnson has been exploring the restructuring of its orthopedic business for two years, with the reorganization expected to be completed by the end of 2025 [1][2] Group 2: Market Position and Financials - The orthopedic business generates nearly $10 billion in annual revenue, accounting for about 10% of Johnson & Johnson's total revenue [1] - Medtronic and Johnson & Johnson Medical Technology both reported annual revenues exceeding $30 billion, while Chinese companies Mindray and MicroPort had revenues of $5 billion and $1 billion, respectively [3] - Johnson & Johnson's orthopedic segment is currently the largest in the market, with a significant share in trauma care, but it lags behind competitors like Stryker in joint replacement surgeries [4] Group 3: Competitive Landscape - The orthopedic market is dominated by four major companies: Stryker, Johnson & Johnson, Zimmer Biomet, and Smith & Nephew, with Stryker leading in knee and hip replacement markets [4] - Analysts estimate that Johnson & Johnson holds approximately 17% of the global knee surgery market and about 25% of the hip surgery market, while Stryker's annual revenue exceeds $20 billion [4][3] - The establishment of DePuy Synthes is expected to create a formidable competitor in the orthopedic sector, potentially becoming the largest and most comprehensive orthopedic company globally [3][5]