Along with its third quarter earnings, J&J MedTech announced its intent to separate its orthopedics business into a standalone company named DePuy Synthes within the next two years.
Orthopedics has been challenging for the company over the last decade, during which it posted a CAGR under 1%. J&J MedTech initiated a restructuring program for orthopedics in 2023 to simplifying its portfolio and operations.
However, as the orthopedic industry’s competitive landscape evolved, the company found it difficult to keep pace with its competitors’ innovations, especially around enabling technology.
J&J MedTech Orthopedic Sales
While severing its profitable but slow-growing orthopedics business will help J&J MedTech’s growth rate, the future is less clear for DePuy Synthes.
From our perspective, its existing portfolio and innovation problems will remain post spin. It could be in for a period of painful “right-sizing” or could look to refocus on a smaller set of priority segments by further divesting some assets.
Stay tuned for more coverage of this developing story.
Along with its third quarter earnings, J&J MedTech announced its intent to separate its orthopedics business into a standalone company named DePuy Synthes within the next two years.
Orthopedics has been challenging for the company over the last decade, during which it posted a CAGR under 1%. J&J MedTech initiated a restructuring...
Along with its third quarter earnings, J&J MedTech announced its intent to separate its orthopedics business into a standalone company named DePuy Synthes within the next two years.
Orthopedics has been challenging for the company over the last decade, during which it posted a CAGR under 1%. J&J MedTech initiated a restructuring program for orthopedics in 2023 to simplifying its portfolio and operations.
However, as the orthopedic industry’s competitive landscape evolved, the company found it difficult to keep pace with its competitors’ innovations, especially around enabling technology.
J&J MedTech Orthopedic Sales
While severing its profitable but slow-growing orthopedics business will help J&J MedTech’s growth rate, the future is less clear for DePuy Synthes.
From our perspective, its existing portfolio and innovation problems will remain post spin. It could be in for a period of painful “right-sizing” or could look to refocus on a smaller set of priority segments by further divesting some assets.
Stay tuned for more coverage of this developing story.
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Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
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