Cork staff informed of Johnson & Johnson's intent to separate orthopaedics business DePuy Synthes

Healthcare conglomerate said the transaction would take place in the next 18 to 24 months 

DePuy Synthes / Johnson & Johnson manafacturing facility at Loughbeg, Ringaskiddy, Co. Cork, Ireland. - Picture; David Creedon

Staff at the Cork branch of Johnson & Johnson's orthopaedics subsidiary DePuy Synthes have been informed of its parent company's intent to separate it into a standalone business. 

The healthcare giant said it plans to separate DePuy in the next 18 to 24 months, marking Johnson & Johnson's second major spinoff since 2023. 

Operating in Cork since 1997, DePuy employs around 1,700 people in Ringaskiddy. In 2019, the company announced a €36m investment in its Cork operations, establishing a 3D Printing Development & Launch Centre, which DePuy said has been "central to the growth of the company." Since then, the site has overseen the successful launch of its first commercial 3D printed knee product.

Speaking on the announcement, Johnson & Johnson said the separation would enhance its strategic and operational focus of each company, as well as drive value for stakeholders. 

The transaction would establish a standalone orthopaedics business, operating as DePuy Synthes, which would be the largest and most comprehensive orthopaedics-focused company, with leading market share positions across major categories, the company said. 

“The planned separation reflects our long-standing commitment to portfolio optimisation and value creation. We are confident that our Orthopaedics business will be better positioned to improve top-line growth and operating margins as a standalone business," said Johnson & Johnson CEO, Joaquin Duato. 

Following the completion of the separation, Johnson & Johnson said it will retain a leadership position in six key growth areas across its Innovative Medicine and MedTech segments, those being Oncology, Immunology, Neuroscience, Cardiovascular, Surgery and Vision, adding that it expects the separation to increase its top-line growth and operating margins.

"Following the transaction, DePuy Synthes is expected to benefit from a more focused business model and be better positioned to advance patient care while delivering clinical and economic value to health care systems worldwide," Johnson & Johnson said. 

For its 2024 fiscal year, the Orthopaedics business generated approximately $9.2bn in sales, around 10% of Johnson & Johnson's total revenue. 

While the orthopaedics business was profitable, Johnson & Johnson said it believes the next phase of innovation in orthopaedics was "beyond our scope and probably in better hands somewhere else."

First established in Cork in 1981, Johnson & Johnson currently employs around 5,000 people across all business segments, with locations in both Ringaskiddy and Little Island. 

Johnson & Johnson raised its 2025 sales forecast on Tuesday after reporting earnings above expectations.

The healthcare conglomerate now expects product revenue of $93.5bn to $93.9bn, about $300m higher than its prior forecast.