Johnson & Johnson has announced plans to separate its Orthopaedics division into a standalone company, DePuy Synthes, as part of a strategic move to sharpen its focus on high-growth areas within Innovative Medicine and MedTech.
The spin-off, expected to be completed in 18 to 24 months, aims to enhance operational efficiency and unlock greater value for stakeholders. Upon separation, DePuy Synthes will become the largest pure-play orthopaedics company, with market-leading positions across major product categories and over $9.2 billion in 2024 sales.
“This transaction enables Johnson & Johnson to focus more sharply on areas where we can significantly extend and improve patient lives,” said CEO Joaquin Duato. “It reflects our commitment to portfolio optimization and positions both companies for long-term growth.”
The new company will continue to serve a $50 billion+ global orthopaedics market, treating around seven million patients annually, and is expected to maintain an investment-grade profile.
To lead the transition, Namal Nawana has been appointed Worldwide President of DePuy Synthes, effective immediately. Nawana, a former CEO of Smith & Nephew and longtime J&J executive, will report to Duato during the separation and is expected to remain at the helm post-spin-off.
“I’m honored to lead DePuy Synthes into its next chapter,” said Nawana. “We have a rich legacy of innovation and a strong commercial foundation to thrive as a standalone company.”
Following the separation, Johnson & Johnson will continue to focus on six priority areas: Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision. The company anticipates the move will boost top-line growth and operating margins, while maintaining its capital priorities, including investment in R&D, increasing dividends, strategic acquisitions, and share repurchases.
While the structure and timing are still being finalized, Johnson & Johnson stated it is considering “multiple paths” for the separation, which remains subject to board and regulatory approvals, as well as consultations with employee representative bodies.