Healthcare products company Johnson & Johnson (J&J) (NYSE:JNJ) on Tuesday announced plans to separate its Orthopaedics business, creating an independent company that will operate as DePuy Synthes.

This move is intended to sharpen J&J's strategic focus on higher-growth and higher-margin segments within its Innovative Medicine and MedTech divisions.

The standalone DePuy Synthes would become the world's largest orthopaedics-focused company, holding leading market share positions across major categories and serving approximately seven million patients annually. In 2024, the business generated about USD9.2bn in sales and it operates within a global market opportunity exceeding USD50bn.

J&J expects the separation to enhance its top-line growth and operating margins while maintaining a strong balance sheet and disciplined capital allocation strategy. Post-separation, the company will retain leadership across six core areas: Oncology, Immunology, Neuroscience, Cardiovascular, Surgery, and Vision.

DePuy Synthes is expected to maintain an investment-grade profile and leverage its focused model to advance innovation and clinical value.

The transaction is targeted for completion within 18 to 24 months, pending board and regulatory approvals.