Jonhson and Johnson announced its intention to separate its orthopaedics business to enhance both the strategic and operational focus of each company, while also improving value for stakeholders.¹ The separation would leave Johnson and Johnson as its own entity and create a new standalone orthopaedic-focused company titled DePuy Synthes.

“This transaction enables Johnson & Johnson to further strengthen its focus and investment toward higher-growth areas where we can meaningfully extend and improve patient lives,” said Joaquin Duato, chairman and chief executive officer, Johnson & Johnson. “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.”

What are the benefits of separating the businesses?

The separation is expected to strengthen Johnson & Johnson’s focus on innovation, while also serving areas of high unmet needs across Innovative Medicine and MedTech and accelerating the ongoing shift of the company’s MedTech portfolio toward higher-growth and higher-margin markets.¹ The transaction would establish DePuy Synthes, serving as a standalone orthopaedics business, and operating with leading market share positions across major categories.¹

Following the completion of the separation, Johnson & Johnson will retain leadership positions in six key growth areas spanning its Innovative Medicine and MedTech segments, including oncology, immunology, neuroscience, cardiovascular, surgery and vision. Johnson and Johnson expects the separation to increase its top-line growth along with its operating margins.¹ The company reinforced its commitment to maintaining a balanced sheet and its consistent capital allocation priorities of R&D investment, annually increasing competitive dividends, value-creating acquisitions and share repurchases.¹

“This move would further enhance the market-leading position for DePuy Synthes and strengthen our overall MedTech business with a focus on Cardiovascular, Surgery and Vision,” added Tim Schmid, executive vice president, worldwide chairman, MedTech. “Through the separation process, we will remain focused on setting our talented teams up for long-term success, while continuing to serve our customers and create healthier futures for patients around the world.”

What is the plan for DePuy Synthes?

Once the planned separation is finalized, DePuy Synthes will become the largest, comprehensive orthopaedics-focused company with leading market share positions across major product categories.¹ Upon the transactions completion, DePuy Synthes expects to benefit from a focused business model, while also being better positioned to advance patient care and deliver clinical and economic value to health care systems worldwide.¹ DePuy Synthes plans to continueaddressing a $50 billion global market opportunity while serving upwards of seven million patients annually through its products and services. In the fiscal year for 2024, Johnson and Johnson’s orthopaedics business generated an estimated $9.2 billion in sales.

Additionally, Johnson and Johnson appointed Namal Nawana to serve as worldwide president of DePuy Synthes, effective immediately.¹ Nawana is expected to lead the business through the separation process, reporting directly to Joaquin Duato, and will continue to lead DePuy Synthes following the completion of the separation.

Nawana touched on the appointment, saying, “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.”

Sources

1. Johnson & Johnson announces intent to separate its Orthopaedics business Johnson and Johnson October 14,2025 https://www.jnj.com/media-center/press-releases/johnson-johnson-announces-intent-to-separate-its-orthopaedics-business