At FinancialMediaGuide, we note that Johnson & Johnson has announced plans to spin off its orthopedics division into a standalone company under the brand DePuy Synthes within the next 18–24 months. This marks the company’s second major restructuring in two years, following the earlier separation of its consumer health unit, Kenvue.
J&J also raised its 2025 revenue forecast – it now expects $93.5–93.9 billion, about $300 million higher than its previous estimate and above Wall Street expectations.
The orthopedics business – which manufactures hip, knee, and shoulder implants, surgical tools, and other devices – generated around $9.2 billion in revenue in 2024, representing roughly 10 % of total company sales.
In 2023, J&J launched a two-year restructuring program for its orthopedics segment, announcing plans to exit certain markets and discontinue several product lines to streamline operations.
Analysts at FinancialMediaGuidenoted that the orthopedics division has been growing more slowly than other areas of the MedTech portfolio, and the spin-off could help create a faster-growing, more efficient J&J.
The company said the move is aligned with its focus on high-growth, high-margin segments, including oncology, immunology, neuroscience, surgery, and vision care.
Chief Financial Officer Joe Wolk explained that the preferred option for the separation is a tax-free spin-off, though other scenarios remain under consideration. He added that while the orthopedics business remains profitable, “the next phase of innovation in orthopedics is likely beyond J&J’s current scope.”
The company’s stock reacted with moderate gains – J&J shares have already risen about 32 % year-to-date, significantly outperforming the broader healthcare index.
At Financial Media Guide, we believe this planned spin-off marks a strategic pivot toward higher-margin and more innovation-driven areas. If executed successfully, it could become one of the most significant transformations in the pharmaceutical and medtech industries in recent years.
Previously at FinancialMediaGuide, we reported on Weak U.S. Demand Weighs on the Transport Sector – UBS Downgrades Leading Carriers and Wall Street Meets Web3 – Pineapple Secures Treasury in INJ After Record Stock Growth, highlighting key shifts in global markets and technology-driven investment trends.
