Core Viewpoint - Johnson and Johnson reported strong third-quarter earnings, exceeding expectations, and announced plans to spin off its orthopedics business within the next two years, indicating a strategic shift towards accelerated growth in its core areas [1][4][12]. Financial Performance - The company achieved a revenue growth of 5.4% in the quarter, with significant contributions from its pharmaceutical segment, which grew 16% when excluding the impact of Stellara [3][5]. - Johnson and Johnson raised its full-year revenue guidance while maintaining its elevated EPS guidance, demonstrating confidence in its growth trajectory [4]. Business Segments - The pharmaceutical business saw 11 brands growing at double-digit rates, with TFIA being a standout product that grew by 40% [5]. - The met business experienced a sequential growth of 57%, and the cardiovascular segment grew by 12%, highlighting the success of recent acquisitions [6]. Spin-off of Orthopedics Business - The decision to spin off the orthopedics business is aimed at allowing both Johnson and Johnson and the new entity to focus on breakthrough innovations and improve competitive positioning in a $50 billion market [12][14]. - The orthopedics segment accounts for approximately 10% of the company's revenue, which is $9.2 billion out of a total annual revenue of $93 billion [14]. Market Performance - Johnson and Johnson's stock has seen significant appreciation, up 18% over the past year and 32% year-to-date, reflecting investor confidence in the company's growth prospects [15][16]. Pipeline and Future Growth - The company has a robust pipeline, including a new therapy for localized bladder cancer and an oral peptide for autoimmune diseases, which are expected to drive future growth [17][18][19]. - The surgical robotic system Otava is also in development, with plans to file with the FDA in the coming year, further contributing to the growth strategy [19].