{"id":213299,"date":"2025-10-14T18:18:08","date_gmt":"2025-10-14T18:18:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/213299\/"},"modified":"2025-10-14T18:18:08","modified_gmt":"2025-10-14T18:18:08","slug":"jj-plans-to-spin-out-orthopedics-business","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/213299\/","title":{"rendered":"J&J plans to spin out orthopedics business"},"content":{"rendered":"

Johnson & Johnson said Tuesday that it plans to spin out its orthopedics business<\/a>, creating a standalone company that would compete with firms like Stryker and Zimmer Biomet.<\/p>\n

The healthcare giant said the decision is intended to focus its medtech unit on higher-growth and higher-margin markets. The spinout, which will be called DePuy Synthes, is expected to happen in the next 18 to 24 months.<\/p>\n

\u201cThis decision further sharpens our focus as a healthcare innovation leader and accelerates the shift of our medtech portfolio to areas of greatest unmet need and higher growth, which includes cardiovascular and robotic surgery,\u201d CEO Joaquin Duato said on an earnings call.<\/p>\n

Duato claimed that the spinout would be the largest, most comprehensive orthopedics company in the medical device space. The CEO added that the business will benefit from a more focused strategy and increased flexibility that would be obtained through a separation.<\/p>\n

The ortho unit brought in approximately $9.2 billion in sales in fiscal year 2024, according to the announcement. Through the first nine months of 2025, J&J\u2019s orthopedic business has generated $6.82 billion in revenue<\/a>, a year-over-year decline of 0.3%. The unit did see a rebound in the third quarter after a slight decline in the second quarter<\/a>, growing sales year over year by 3.8% to $2.27 billion.<\/p>\n

\u201cWe’ve been on a journey over the last several years to really aggressively move our portfolio into higher-growth markets, and adding attractive assets such as Abiomed and [Shockwave Medical] in high-growth markets like cardiovascular are good examples,\u201d Tim Schmid, J&J\u2019s worldwide chairman of medtech, said on the call. \u201cThis decision to separate ortho is the next major step in that direction. Ortho is a great business but, frankly, one that participates \u2026 in lower-growth markets. This is all about shrinking to grow faster for medtech.\u201d\u00a0<\/p>\n

CFO Joe Wolk told investors there would be updates throughout the process, adding that there would be nothing \u201cnewsworthy\u201d to convey until mid-2026. After the spinout, J&J\u2019s medtech unit will be made up of its cardiovascular, surgery and vision businesses.<\/p>\n

J&J\u2019s planned spinout is the second large separation announced in the medical device space this year. In May, Medtronic announced that it would spin out<\/a> its diabetes business into a separate, standalone company.<\/p>\n

Along with the spinout news, J&J announced that Namal Nawana would become the worldwide president of DePuy Synthes, effective immediately. Nawana will lead the business during and after the separation process.<\/p>\n

Overall, J&J\u2019s medtech unit reported third-quarter revenue of $8.43 billion, representing year-over-year growth of 6.8%. The company\u2019s cardiovascular portfolio, which includes electrophysiology and J&J\u2019s Abiomed and Shockwave acquisitions, grew sales by 12.6% in the quarter to $2.21 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"Johnson & Johnson said Tuesday that it plans to spin out its orthopedics business, creating a standalone company…\n","protected":false},"author":2,"featured_media":31930,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":{"0":"post-213299","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-au","9":"tag-australia","10":"tag-health","11":"tag-healthcare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/213299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=213299"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/213299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/31930"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=213299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=213299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=213299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}