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2h ago

J&J to Spin Off $9 Billion Orthopedics Unit as DePuy Synthes Within Two Years

The move refocuses J&J on higher‑growth pharmaceuticals plus advanced medical technology, with a tax‑free split the preferred path.

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Johnson & Johnson company offices are shown in Irvine, California, U.S., October 14, 2020. REUTERS/Mike Blake
Johnson & Johnson has reported an overall sales increase of 6.8%, though the company has chosen to spin off its orthopaedics business in a bid to prioritise its portfolio. Image source: Skorzewiak via ShutterStock.com.
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Overview

  • J&J will separate its orthopedics business into DePuy Synthes in 18 to 24 months, with CFO Joe Wolk prioritizing a tax‑free spin‑off while evaluating alternatives.
  • The orthopedics unit generated about $9.2 billion last year, roughly 10% of company revenue, spanning joint implants and surgical instruments.
  • J&J said former Smith & Nephew chief Namal Nawana will lead DePuy Synthes through the separation.
  • Third‑quarter results beat expectations, with $23.99 billion in sales and adjusted earnings of $2.80 per share as pharmaceuticals and medtech each grew 6.8% year over year.
  • Guidance was lifted for 2025 product revenue to $93.5 billion to $93.9 billion, and management said the split supports greater focus on oncology, immunology, neuroscience, surgery, vision care and cardiovascular.