Johnson & Johnson is narrowing its focus again, nearly four years after it was broken up Consumer health business.
The health care giant said Tuesday that it will spin off its orthopedics business into an independent company known as DePuy Synthes. The move leaves J&J to focus on its pharmaceutical and MedTech segments, which makes prescription drugs, contact lenses and technology to treat cardiovascular disease and assist in surgical procedures.
The orthopedics business will be led by Namal Nawana, former CEO of medical technology company Smith & Nephew, which makes products for sports medicine and wound management and also focuses on orthopedics.
Johnson & Johnson’s orthopedics business generated more than $9 billion in sales last year. But the company said the split would help it focus on higher growth areas.
The company expects to complete this step within the next 18 to 24 months.
Johnson & Johnson announced in November 2021 that it would spin off its consumer health business, which makes Band-Aids, Listerine and Tylenol, into a separate company that later became known as Kenvue.
New Brunswick, New Jersey-based Johnson & Johnson on Tuesday also reported better-than-expected third-quarter earnings and reaffirmed revised earnings guidance for the year.
The company’s shares fell more than $2 to $188.74 in pre-market trading. Shares are already up more than 30% so far this year.
https://media.zenfs.com/en/ap_finance_articles_694/a92f9efb53b5a17c46c7398461ff33e1
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