BREAKINGVIEWS-J&J slims down but struggles to get fit
Johnson & Johnson plans to separate its orthopedics business, which generated $9.2 billion in revenue in 2024, in 18 to 24 months. This move aims to enhance capital allocation under CEO Joaquin Duato. The unit, responsible for hip, knee, and shoulder implants, will be named DePuy Synthes. Post-separation, J&J will concentrate on six key areas: oncology, immunology, neuroscience, cardiovascular, surgery, and vision.
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Robert Cyran
NEW YORK, Oct 14 (Reuters Breakingviews) - The $450 bln health conglomerate plans to jettison its hip and knee implants, two years after carving out Tylenol maker Kenvue. Paring down should help boss Joaquin Duato allocate capital better. Until he finds better uses, however, the financial engineering will go only so far.
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CONTEXT NEWS
Johnson & Johnson said on October 14 that it would separate its orthopedics business, a division that generated $9.2 billion of revenue in 2024, in 18 to 24 months.
The unit, which accounts for about 10% of J&J’s top line, makes hip, knee and shoulder implants, and surgical tools. It will be called DePuy Synthes.
Following the separation, the conglomerate will focus on six areas: oncology, immunology, neuroscience, cardiovascular, surgery, and vision. (Editing by Jeffrey Goldfarb; Production by Maya Nandhini)
