Johnson & Johnson plans to separate its orthopedics business into a stand-alone company under the DePuy Synthes name, shifting focus toward higher-growth areas within its MedTech and Innovative Medicine segments.

The New Brunswick, New Jersey-based company said the move is intended to sharpen operational focus and improve long-term performance across both organizations. DePuy Synthes would operate independently as the largest orthopedics-focused firm globally, with $9.2 billion in sales reported in fiscal year 2024 and a portfolio serving around 7 million patients annually.

“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 chairman and CEO Joaquin Duato.
Namal Nawana has been appointed as worldwide president of DePuy Synthes, effective immediately. He will oversee the transition and is expected to continue in the role post-separation. Nawana previously held executive leadership roles at Smith & Nephew and Alere, and began his career at Johnson & Johnson, including a stint as worldwide president of the DePuy Synthes Spine business.

Johnson & Johnson will retain its positions in oncology, immunology, neuroscience, cardiovascular, surgery and vision after the split. The company expects the separation to improve its operating margins and top-line growth. It also reaffirmed its capital allocation priorities, including R&D investments, dividends, acquisitions and share repurchases.

The separation is targeted for completion within 18 to 24 months, subject to board and regulatory approvals, as well as any required consultations with employee representative bodies. Citi and Goldman Sachs are acting as financial advisors, with Freshfields LLP providing legal counsel.

Johnson & Johnson will continue to operate the orthopedics business during the transition, maintaining investments in growth and innovation.

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