Core Viewpoint - Johnson & Johnson (J&J) plans to separate its orthopaedics division, DePuy Synthes, from the main company within the next 18 to 24 months, following strong third-quarter results that exceeded Wall Street expectations [1][5]. Financial Performance - J&J reported quarterly revenue of $24 billion for Q3, surpassing the average analyst estimate of $23.7 billion [5]. - The company raised the midpoint of its estimated 2025 reported sales guidance by $300 million, bringing the new figure to $93.7 billion [5]. - Despite higher taxes, J&J maintained its adjusted earnings guidance for 2025 [6]. Business Strategy - The separation of the orthopaedics unit is intended to allow it to operate as a standalone entity, potentially becoming the largest in the world, while enabling J&J to focus on higher-growth, higher-margin markets [3]. - J&J is currently evaluating the mechanics of the separation, considering a spinoff as the most complex and resource-intensive option [3]. Leadership Changes - Namal Nawana has been appointed to lead the orthopaedics unit; he is a veteran medical technology executive with prior experience at Alere Inc. and Smith & Nephew Plc [4]. Market Context - The healthcare sector faces uncertainty due to potential tariff pressures from the U.S. government, which may impact pricing strategies across the industry [7]. - Rival drugmakers, including Pfizer Inc. and AstraZeneca Plc, have begun offering discounts in anticipation of tariff changes [7]. Investment Initiatives - J&J pledged to invest $55 billion over the next four years in U.S. manufacturing, research and development, and technology [8]. - The company also announced a $2 billion investment in a manufacturing site in Holly Springs, North Carolina, expected to create around 120 new jobs [8].