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Johnson & Johnson to Spin Off Orthopaedics Business

Key highlights
  • Johnson & Johnson plans to separate its Orthopaedics business.
  • The new entity will operate as DePuy Synthes.
  • The separation aims to focus on high-growth, high-margin markets.
  • Johnson & Johnson will retain leadership in six key growth areas.

Separation Announcement

Johnson & Johnson announced its intent to separate its Orthopaedics business to enhance strategic and operational focus. The move aims to drive value for stakeholders by establishing a standalone orthopaedics company.

New Entity: DePuy Synthes

The separated business will operate as DePuy Synthes, becoming the largest orthopaedics-focused company with leading market share positions across major categories.

Strategic Focus

The separation is part of Johnson & Johnson's strategy to focus on high-growth and high-margin markets, particularly in its MedTech portfolio. This aligns with the company's commitment to portfolio optimization and value creation.

Future Growth Areas

Post-separation, Johnson & Johnson will maintain leadership in six key growth areas: Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision. The company expects the separation to boost top-line growth and operating margins.