Johnson & Johnson Plans to Spin Off Its Orthopaedics Business

On October 14, 2025, Johnson & Johnson (New York Stock Exchange: JNJ) announced a major strategic initiative—intending to spin off its DePuy Synthes orthopaedics business. The news was released alongside the company’s Q3 earnings report. Johnson & Johnson projects that its 2025 product revenues will reach $93.5 billion to $93.9 billion, an upward revision of approximately $300 million from its previous forecast.

Johnson & Johnson’s orthopaedics business primarily manufactures hip, knee, and shoulder implants, surgical instruments, and other related products. Last year, this business generated approximately $9.2 billion in revenue, accounting for roughly 10% of Johnson & Johnson’s total revenues.

01 Spin-Off Purpose: Strategic Focus and Value Enhancement

Johnson & Johnson stated that the core objective of separating the DePuy Synthes orthopaedics business is to strengthen the strategic and operational focus of each company, thereby driving stakeholder value. This move is not an isolated event but the latest development in the recent wave of business spin-offs among major medical technology companies. Prior to this, Zimmer Biomet sold its spine and dental businesses, Baxter divested its renal business, and Medtronic and BD sold their diabetes businesses respectively. Johnson & Johnson’s current action aligns with the industry trend of consolidation and focus.

From Johnson & Johnson’s perspective, the anticipated separation will further solidify its strategic priorities and accelerate the transformation of its medical technology portfolio—one of the world’s largest medical technology portfolios—toward higher-growth and higher-margin markets. Following the spin-off, an independent orthopaedics business operating under the DePuy Synthes name will be established. Johnson & Johnson noted that DePuy Synthes will become the largest and most comprehensive orthopaedics company, with leading market positions across key categories.

After the spin-off is completed, Johnson & Johnson expects to maintain leadership in six key growth areas. Its Innovative Medicine and Medical Technology segments will cover Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision. The company anticipates that the spin-off will boost revenue growth and operating profit margins, creating greater value for shareholders.

For DePuy Synthes, this initiative will further strengthen its market-leading position. Tim Schmid, Executive Vice President and Global Chair of Medical Technology, stated that through the spin-off, DePuy Synthes will benefit from a more focused business model. The segment generated approximately $9.2 billion in sales in 2024, and independent operation is expected to enable more efficient resource allocation and market expansion.

Ryan Zimmerman and Iseult McMahon, analysts at BTIG, believe that this transaction may be beneficial to Stryker, Zimmer Biomet, and other orthopaedic leaders. However, they also pointed out that it could lead to disruptions within DePuy Synthes during this period and accelerate market share losses. This reflects the industry’s cautious observation of potential changes in the market competition landscape triggered by Johnson & Johnson’s spin-off.

02 Spin-Off Process and Leadership Arrangements

Johnson & Johnson intends to explore multiple avenues to spin off the business, with the goal of completing the process within 18 to 24 months. During the separation period, the company plans to continue operating the business in accordance with its current strategy.

In terms of leadership, Johnson & Johnson has appointed Namal Nawana as Global President of DePuy Synthes, effective immediately. Mr. Nawana will lead the business through the separation process and report to Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson. The company expects him to continue leading DePuy Synthes after the spin-off is completed.

Namal Nawana has extensive industry experience. He most recently served as Executive Chairman and Founder of Sapphiros, a platform company building consumer diagnostic technologies. Prior to that, he was CEO and Board Member of Smith + Nephew, a leading orthopaedics company, and also served as President and CEO of Alere, a point-of-care diagnostics company, until its acquisition by Abbott. Notably, before joining Alere, Mr. Nawana worked at Johnson & Johnson for more than 15 years in senior leadership roles, with his last position being Global President of DePuy Synthes Spine—providing him with familiarity and advantages for his new role.

Joaquin Duato, Chairman and CEO of Johnson & Johnson, expressed satisfaction with the appointment of Namal Nawana, stating: “Namal brings extensive experience leading global public companies and a track record of success in growing medical device businesses. We are pleased to have a capable executive like Namal in this role and believe he is the ideal leader to guide the new DePuy Synthes into the future.” Mr. Nawana also commented: “I am honored to take on this role and lead the new DePuy Synthes—a global market leader with a rich legacy of innovation and a strong commercial platform, fully capable of succeeding as an independent company. I look forward to collaborating with the broader team to fulfill our mission of keeping people around the world moving.”

Following the news release, Johnson & Johnson’s stock rose nearly 2% in pre-market trading. This business spin-off by Johnson & Johnson will undoubtedly set off new ripples in the medical technology industry. From the company’s own strategic adjustment to changes in the industry competition landscape, and the appointment of new leadership, every aspect has attracted much attention. Medical Device Home will continue to follow and report on how Johnson & Johnson advances the spin-off process, the development trajectory of the new DePuy Synthes after independent operation, and how the entire orthopaedic market will evolve.