J&J to Spin Out Orthopedics Business
— Johnson & Johnson will separate its orthopedics division into a standalone company—expected within 18–24 months—to sharpen focus on higher‑growth medical technology areas.
What’s the change?
Johnson & Johnson announced on October 14, 2025, that it will spin off its orthopedics business into a new independent company, under the name DePuy Synthes. The move is expected to take 18 to 24 months.
Why is J&J doing this?
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Strategic focus: The parent company wants to concentrate its medical device portfolio on higher-growth, higher-margin sectors like cardiovascular and robotic surgery.
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Greater flexibility: By separating orthopedics, J&J believes the new entity can be more agile and sharper in its strategy.
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Scale: J&J claims the new orthopedics company will be one of the largest in its field.
Financials & scale
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In fiscal year 2024, the orthopedics division generated about $9.2 billion in sales.
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For the first nine months of 2025, it brought in $6.82 billion, down 0.3% year over year.
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In Q3 2025, orthopedic sales rebounded, rising 3.8% to $2.27 billion.
Leadership & structure
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Namal Nawana is named worldwide president of DePuy Synthes and will guide the spinout process.
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After the spinout, J&J’s medtech unit will focus on its cardiovascular, surgical, and vision divisions.
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The company expects to share updates through 2026, with nothing major expected until mid-2026.
What to watch next
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How DePuy Synthes competes with other big orthopedic players like Stryker and Zimmer Biomet.
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Whether the spinout strategy delivers higher growth and profitability for both J&J and the new orthopedics company.
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Execution risks tied to transitioning operations, culture, and regulatory frameworks during the separation.
TL;DR
Johnson & Johnson is spinning off its orthopedics arm into a standalone company called DePuy Synthes, in a bid to refocus its medtech business on faster-growing markets like cardiovascular and robotics. The orthopedics unit has a strong revenue base (~$9+ billion) but slower growth, prompting J&J to seek agility and strategic clarity. The process should conclude in the next 1.5 to 2 years.
FAQ
Q: When will the spinout happen?
A: Between 18 and 24 months from the announcement in October 2025.
Q: What name will the new company use?
A: It will operate under DePuy Synthes.
Q: Which J&J segments will remain after the spinout?
A: J&J’s medtech unit will retain cardiovascular, surgery, and vision businesses.
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