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The basics:

• J&J to spin off orthopedics unit into new firm DePuy Synthes
• Move follows 2023 spin-off of consumer unit Kenvue
• Orthopedics division generated $9.2B in 2024 revenue
• Move aims to boost growth in oncology, surgery & vision care

Johnson & Johnson plans to spin off its orthopedics business into a standalone company. The move comes as part of a bid to focus J&J’s medical technology division on faster-growing areas.

In an Oct. 14 press release, the New Brunswick-based health giant said the division will separate and form a new company, named DePuy Synthes, within the next 18 to 24 months.

According to J&J, the unit’s portfolio of surgical instruments and hip, knee and shoulder replacements, generated around $9.2 billion last year – about 10% of total revenue. Upon completion of the planned separation, DePuy Synthes would establish the largest, most comprehensive orthopedics-focused company, with leading market share positions across major product categories, the announcement said.

J&J said the divestment would enable it to focus on high-growth, high-margin areas, such as oncology, immunology, neuroscience, surgery, vision care and cardiovascular.

Round 2

The split comes two years after J&J did similar with its $15 billion consumer unit. Now headquartered in Summit, Kenvue’s brand portfolio includes Band-Aid, Neutrogena, Tylenol and Benadryl.

Around the same time, J&J unveiled a two-year restructuring program for its orthopedics business that included exiting certain markets and eliminating certain products, Reuters noted.

In a statement, J&J Chairman and CEO Joaquin Duato said, “The planned separation reflects our long-standing commitment to portfolio optimization and value creation. We are confident that our Orthopaedics business will be better positioned to improve top-line growth and operating margins as a standalone business.”

The company also announced Namal Nawana as worldwide president of DePuy Synthes, effective immediately. According to J&J, Nawana will lead the business through the breakup process. He will report directly to Duato.

After the spin-off is completed, Nawana will helm the new company, the announcement said. He most recently served as executive chairman and founder of Boston consumer diagnostic portfolio company Sapphiros. His background also includes more than 15 years at J&J, including as worldwide president of the DePuy Synthes Spine business.

We are confident that our Orthopaedics business will be better positioned to improve top-line growth and operating margins as a standalone business.
– Joaquin Duato, Johnson & Johnson chairman and CEO

Nawana shared, “I am honored to take on this role to lead the new DePuy Synthes, a global market leader with a deep heritage of innovation and a strong commercial platform that is well positioned to succeed as a standalone company. I look forward to working together with the broader team to meet our mission and keep people around the globe moving.”

Earnings report

The announcement came alongside the release of J&J’s third quarter 2025 earnings.

For the three months ending Sept. 30, the company beat Wall Street’s expectations with $23.99 billion in sales. It also reported increases in pharmaceuticals ($15.56 billion), oncology products ($3.67 billion) and medical device sales ($8.43 billion).

Additionally, J&J raised its 2025 sales outlook to say it expects product revenue of $93.5 billion to $93.9 billion. That’s about $300 million higher than the prior forecast.