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J&J to Spin Off Orthopaedics Unit After Strong Q3 Results, Stock Falls 1%
Johnson & Johnson will create a standalone orthopedics company generating $9.2 billion in sales to focus on higher-growth, higher-margin drug and device markets, CFO said.
- Johnson & Johnson on Tuesday raised its 2025 sales forecast by $300 million and said it will spin off its orthopedics unit into standalone DePuy Synthes within 18 to 24 months.
- J&J says the split will give its drug and device operations more breathing room amid pressure from President Donald Trump to lower U.S. drug prices after recently spinning off Kenvue.
- J&J reported stronger earnings and lifted its product revenue range to $93.5 billion–$93.9 billion, about $300 million higher after third-quarter revenue beat estimates at $24 billion.
- Investors digested both the guidance raise and the planned leadership for the new company as shares rose about 2% in premarket trading but fell later, with Namal Nawana leading DePuy Synthes.
- The move positions each company to sharpen focus, with J&J increasing U.S. investment, including a $15 billion pledge and a $2 billion Holly Springs project creating roughly 120 jobs.
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Johnson & Johnson reveals 2025 sales forecast and plans for its orthopedics business
Johnson & Johnson on Tuesday raised its 2025 sales forecast after reporting quarterly earnings that topped Wall Street expectations, and announced plans to spin off its orthopedics business into a standalone company. The healthcare conglomerate now expects product revenue of $93.5 billion to $93.9 billion, about $300 million higher than its prior forecast and above analysts’ expectations of $93.4 billion, according to LSEG data. Alongside the up…
Coverage Details
Total News Sources29
Leaning Left6Leaning Right2Center7Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 40%
C 47%
13%
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