• by Les Luchter , October 14, 2025

Johnson & Johnson’s orthopedics business, valued at over $9 billion annually, mostly helps healthcare providers (HCPs) mend bones and joints.

But ortho isn’t growing fast enough for the healthcare giant, which announced plans to amputate it within 18 to 24 months.

Much as it did in severing its $15 billion consumer healthcare business into spin-off Kenvue a couple of years ago, the upcoming move will create the world’s largest company in its respective category.

And once again, J&J is “shrinking to grow faster,” CEO Joaquin Duato explained to analysts during the company’s third quarter earnings call Oct. 14.

Like most of J&J’s other medtech offerings -- cardiovascular, surgery and vision -- the ortho business supplies HCPs with B2B products and services. The major exception is the vision category’s marketing of Acuvue contact lenses.

Just this Monday, J&J had announced ortho’s latest product: Inhance Intact, described as “a total shoulder replacement system.”

In Q3, the orthopedics business accounted for $2.27 billion in J&J revenues, behind surgery at $2.54 billion but ahead of cardiovascular at $2.1 billion and vision at $1.4 billion.

But ortho grew only 3.8% year-over year, compared with cardiovascular at 12.6%, vision at 7.7% and surgery at 4.4%.

But medtech overall continues as a priority for J&J, executives stressed during the earnings call.

And nlike the case with its consumer health business, where the ultimate name of the spin-off was a mystery after initital plans announced, there will be no long process this time.  

The new orthopedics company will be named DePuy Synthes, which is how the business was known until 2023, when it and other businesses were consolidated under the J&J MedTech moniker. Founded in 1895, DePuy Synthes was acquired  by J&J in 1998.

Duato said that the spinoff, “fueled by the aging of the population,” would emerge with “commanding market shares in the most important segments of the orthopedics business,” which he said was valued at $50B and growing.

Wolk said DePuy Synthes would be well-positioned to compete against other “singularly focused orthopedics companies.” Notable competitors in the field include Stryker, Zimmer Biomet, Medtronic and Smith + Nephew.

Marking the traditional kickoff of Big Pharma’s earnings report season on Tuesday, J&J reported overall Q3 sales growth of 6.8%YoY to $24.0 billion.

Tremfya, which treats psoriasis, IBD (inflammatory bowel disease), ulcerative colitis and Crohn’s disease, was a particular standout performer, growing 40% YoY, with Duato now projecting it as a $10 billion per year product.

Mental health drug Caplyta, acquired by J&J in January, is expected to soon receive FDA approval for major depressive disorder in addition to its current indications for schizophrenia and bipolar disorder, Duato said, again projecting sales would reach $5 billion annually. 

J&J also increased its guidance numbers for full-year 2025 to sales of $93.0 billion to $93.4 billion, or an increase of 4.8% to 5.3%. The company also gave a preliminary estimate of a 5% sales gain for 2026.