On Monday, Johnson & Johnson announced a formal plan to spin off its orthopaedics business, which will operate as DePuy Synthes. The spin‑off is part of the company’s portfolio‑optimization strategy to focus on high‑growth, high‑margin MedTech segments.
The company expects the separation to improve MedTech top‑line revenue growth and operating margin by at least 75 basis points, based on normalized year‑to‑date 2025 results. The spin‑off is targeted for completion within 18 to 24 months and is structured to be tax‑free for U.S. federal income tax purposes.
The spin‑off will not change Johnson & Johnson’s dividend policy, and the company anticipates that the separation will sharpen its focus on cardiovascular and robotic surgery markets, positioning it for sustained value creation.
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