{"id":231621,"date":"2025-10-17T13:49:12","date_gmt":"2025-10-17T13:49:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/231621\/"},"modified":"2025-10-17T13:49:12","modified_gmt":"2025-10-17T13:49:12","slug":"what-jjs-ortho-spinoff-means-for-the-industry","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/231621\/","title":{"rendered":"What J&J\u2019s ortho spinoff means for the industry"},"content":{"rendered":"

Johnson & Johnson\u2019s plan to spin out its orthopedics segment could give the business a chance to become a stronger competitor, experts told MedTech Dive.\u00a0<\/p>\n

J&J announced on Tuesday<\/a> that it would separate its orthopedic business into a standalone company, called DePuy Synthes, in the next 18 to 24 months. The decision follows a history of medtech spinoffs \u2014 with recent examples including GE Healthcare, ZimVie, and Medtronic\u2019s planned split of its diabetes business<\/a> \u2014 where companies look to divest slower-growing segments in hopes that both remaining entities will be stronger.\u00a0<\/p>\n

J&J CEO Joaquin Duato told investors this week that the orthopedics spinoff would allow J&J to focus on faster-growing medtech markets such as cardiovascular and robotic surgery. In the long term, analysts expect the decision will lead to more investment and faster growth in the standalone orthopedics business.<\/p>\n

Market share<\/p>\n

Duato told investors that he expects DePuy to be the \u201clargest, most comprehensive orthopedics company\u201d as a standalone firm.\u00a0<\/p>\n

J&J\u2019s orthopedics business reported sales of $9.2 billion<\/a> last year, making up about 29% of J&J\u2019s total medical device sales.<\/p>\n

Most of the orthopedic device market is divided between four companies: Stryker, J&J, Zimmer Biomet and Smith & Nephew.<\/p>\n

J&J\u2019s biggest orthopedic business is in trauma care, which includes tools to treat a variety of fractures. J&J has a more than 50% share of the orthopedic trauma market, competing with Stryker, according to RBC Capital Markets analyst Shagun Singh.<\/p>\n

\u201cThey have huge brand recognition in orthopedics,\u201d BTIG analyst Ryan Zimmerman said. \u201cDePuy Synthes was known to be a world class trauma company for a long time.\u201d\u00a0<\/p>\n

In reconstruction procedures, such as knee, hip and shoulder replacements, J&J has a smaller position, behind competitors Zimmer and Stryker. J&J has a roughly 17% share of global knee procedures and about a quarter of global hip procedures, Singh said.\u00a0<\/p>\n

What\u2019s next for DePuy?<\/p>\n

J&J has shared few details about how DePuy will be structured. The company named Namal Nawana as worldwide president of DePuy. Nawana, who is a previous CEO of Smith & Nephew<\/a> and led J&J\u2019s spine business earlier in his career, will lead the business during and after the separation.<\/p>\n

Nawana was well respected during his tenure at Smith & Nephew, Zimmerman said, adding that \u201cit seems like he\u2019s the right guy for the seat.\u201d<\/p>\n

Some analysts, including Needham\u2019s Mike Matson, wrote to clients that they expect competitors to initially benefit from the separation, but for DePuy to become stronger in the long term.\u00a0<\/p>\n

\u201cThis business has underperformed within broader J&J,\u201d Singh said.<\/p>\n

Singh expects DePuy to keep its leadership position in trauma and focus efforts on enabling technology, including robotics.<\/p>\n

Edwards Jones analyst John Boylan said he doesn\u2019t expect the separation to change the broader orthopedics landscape initially, as DePuy has been in the market for decades. Longer term, he expects DePuy\u2019s management to focus more attention on innovation and bringing products to market more quickly. Boylan also expects DePuy to focus on its orthopedics robotic platform, Velys, and hips, knees and extremities.<\/p>\n","protected":false},"excerpt":{"rendered":"Johnson & Johnson\u2019s plan to spin out its orthopedics segment could give the business a chance to become…\n","protected":false},"author":2,"featured_media":231622,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[97,252,253],"class_list":["post-231621","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-care","tag-health","tag-health-care","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/231621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=231621"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/231621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/231622"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=231621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=231621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=231621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}