J&J announced an 18–24 month plan last October to separate Orthopaedics into a standalone public company under Namal Nawana. That was the official script.
The path that now looks far more probable is a private equity buyout, with a deal taking shape into early 2027 rather than a mid-2027 IPO.
Apollo is currently in talks to acquire the business for roughly $20 billion (~2.2x 2025 revenue). Other buyout shops have already reviewed the book. While discussions remain non-exclusive and could stall, revert to another buyer, or fall back on a spin-off, I would not bet on the public markets.
Why the IPO Path Is Losing
Anemic Growth: DePuy Synthes generated ~$9.2B in 2024 and ~$9.3B in 2025 (+1.1%). It accounts for under 10% of total J&J revenue and roughly a quarter of MedTech.
Capital Reallocation: CEO Joaquin Duato has made J&J's priorities clear: capital is shifting toward oncology, immunology, neuroscience, surgery, and vision.
Corporate Code: When CFO Joe Wolk and MedTech Chairman Tim Schmid emphasize that "every separation path is open to maximize value," that translates to one thing: they will take the cleanest check.
Antitrust Realities: A strategic sale of the full u...
