Potential Spinoff of J&J’s $9.3B Orthopedics Unit by Mid-2027
Healthcare giant Johnson & Johnson has indicated a potential spinoff of its renowned orthopedics division, DePuy Synthes. This strategic move could significantly alter the global medical device industry. During the Q3 2026 earnings call, CFO Joseph Wolk expressed a preference for a “straight spin” of the business to maximize long-term shareholder value. The target completion date is set for mid-2027.
These plans follow months of high-profile negotiations. Earlier in the year, J&J was allegedly in advanced discussions with private equity behemoth Apollo Global Management to sell DePuy Synthes for an estimated $20 billion. This deal would have marked Apollo’s most substantial healthcare investment to date. However, J&J’s management seems to now favor a tax-free spinoff, allowing existing shareholders to directly profit from the unit’s autonomy.
DePuy Synthes, a manufacturer of hip, knee, and shoulder replacement implants, as well as surgical instruments and bone repair devices, reported $9.3 billion in revenue in 2025. If separated as an independent entity, it would emerge as the world’s largest dedicated orthopedics company. Concurrently, J&J announced a 6% operational sales growth in Q3 2026, with the full-year guidance elevated to a midpoint of $100.7 billion.
The proposed separation aligns with J&J’s overarching strategy to focus on higher-growth, higher-margin sectors such as oncology, immunology, and neuroscience.
Source: MassDevice – J&J sets 2027 target for ortho spinoff