- Johnson first announced its intent to separate the unit in October as part of its intent to concentrate its focus on higher-growth areas.
- JNJ is expected to meet possible buyers in the coming weeks with documents and financials it is putting together, the report said.
- Several large private equity firms are considering teaming up to buy the unit, the report added.
Johnson & Johnson (JNJ) shares jumped 1% on Thursday following reports that the company is eyeing a potential sale of its orthopedics segment.
Bloomberg reported, citing unnamed people familiar with the matter, that DePuy Synthes could be valued at more than $20 billion in a sale. The drugmaker has been planning to separate the unit.
JNJ is expected to meet possible buyers in the coming weeks with documents and financials it is putting together, the report said, while also noting that several large private equity firms are considering teaming up to buy the unit.
The deliberations are at an early stage and might not culminate in the sale of the business, the report added.
Johnson’s Orthopedics Business
DePuy Synthes or Johnson’s orthopedics segment specializes in joint reconstruction, trauma, craniomaxillofacial, spinal surgery and sports medicine solutions.
In the 12 months through the end of December, Johnson reported $9.26 billion in sales from its ortho business, including $5.72 billion in the U.S. and $3.54 billion internationally. This marks a growth of 1.1% from the $9.16 billion in sales reported in 2024.
The company management said in late January, during the company’s post-earnings call, that it is looking at a mid-2027 timeline for the separation of the segment. Johnson first announced its intent to separate the unit in October as part of its intent to concentrate on higher-growth areas.
The transaction would establish a standalone orthopedics business that would be the largest and most comprehensive orthopedics-focused company, JNJ then said.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around JNJ stock rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours while message volume stayed at ‘high’ levels.
JNJ stock has gained 56% over the past 12 months.
Read More: CORT Stock Drops After Appeals Court Sides With Teva In Korlym Patent Fight
Get updates to this developing story directly on Stocktwits.