Orthopedics Spin Refines Johnson & Johnson's Focus; Dividend Remains Strong
Reaffirmed on October 17, 2025
Johnson & Johnson plans to separate its $9 billion orthopedics division, DePuy Synthes, within the next two years — the latest step in a multiyear effort to focus on higher-growth, higher-margin operations.
The move follows 2023's separation of Kenvue, J&J's consumer health arm, leaving the company anchored around pharmaceuticals and medical technology.
Orthopedics has been a reliable but slower-moving business facing tough competition from Stryker and Zimmer Biomet. The divestiture should allow J&J to operate with a simpler structure and clearer priorities while keeping its risk profile and financial strength largely unchanged.
Earlier this year, the healthcare giant acquired Intra-Cellular Therapies, a neuroscience firm best known for its treatment of depression and schizophrenia, further demonstrating J&J's pivot toward faster-growing therapeutic segments.
Meanwhile, the company continues to see strength across key products such as Darzalex, Carvykti, and Tremfya, which are building momentum in oncology and immunology.
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