J&J Orthopedics Talks Put $20 Billion Valuation in Focus

Johnson & Johnson’s planned exit from orthopedics has moved from a strategic blueprint toward a potential multibillion-dollar transaction. Shares rose 1.3% to $268.96 in premarket trading on September 14 after reports that Apollo Global Management is discussing an acquisition of DePuy Synthes, J&J’s orthopedics franchise.

The talks could value the unit at close to $20 billion, according to Bloomberg News, which cited people familiar with the matter. No agreement has been signed. The discussions could still collapse, another bidder could appear, or J&J could pursue a public-company spinoff instead.

That range would put a substantial price tag on a business that generated $9.3 billion in revenue in 2025. DePuy Synthes sells implants and surgical equipment used in hip, knee and shoulder procedures, along with products spanning spine, trauma, sports medicine and digital surgery. It is a large, established franchise, but not a fast-growing one. Sales were little changed from 2024, according to reporting on the talks.

J&J announced in October 2025 that it intended to separate the orthopedics business and operate it as a standalone company under the DePuy Synthes name. The company said the move would sharpen its focus on higher-growth and higher-margin areas of MedTech, including cardiovascular products, surgery and vision. J&J has said the separation is expected to be completed in 2027, subject to approvals and other conditions.

The structure matters as much as the headline valuation. A sale to Apollo would give J&J cash and a clean break while handing the private-equity firm control of a global medical-device platform. A spinoff would leave existing shareholders with an ownership stake in the new company, but would also expose DePuy Synthes to the costs and scrutiny of operating independently.

The unit carries another complication: J&J has faced thousands of lawsuits tied to hip-replacement devices. How those liabilities are allocated would be central to any final agreement, as would the debt placed on the business.

Apollo and J&J did not immediately comment on the reported negotiations. The potential deal would be Apollo’s largest healthcare bet if completed, while giving J&J another test of its portfolio reshaping strategy.