Oct 14 (Reuters) - Johnson & Johnson ( JNJ ) on Tuesday

said it plans to separate its orthopedics business into a

standalone company named DePuy Synthes within the next 18 to 24

months, marking its second major spinoff since 2023.

J&J's orthopedics unit, which makes hip, knee, and shoulder

implants, surgical instruments, and other products, generated

around $9.2 billion last year, or about 10% of total revenue.

J&J in 2023 announced a two-year restructuring program for

its orthopedics business, saying it planned to exit certain

markets and stop selling some products, after having recently

spun off its $15 billion consumer unit into Kenvue ( KVUE ).

The company said it planned to focus on high-growth,

high-margin areas as part of its separation plans, such as

oncology, immunology, neuroscience, surgery, vision care, and

cardiovascular.

J&J Chief Financial Officer Joe Wolk said the company was

exploring multiple paths for the separation, with a primary

focus on a tax-free spin-off, but remained open to other

options.

While the orthopedics business was profitable, Wolk said J&J

believes the next phase of innovation in orthopedics was "beyond

our scope and probably in better hands somewhere else."

FORECAST RAISE, PROFIT BEAT

J&J also raised its 2025 sales forecast by about $300

million and now expects product revenue of $93.5 billion to

$93.9 billion, above analysts' expectations of $93.4 billion,

according to LSEG data.

Third-quarter sales of $23.99 billion edged past Wall Street

expectations of $23.75 billion, according to LSEG data.

The drugs and medical device maker posted adjusted earnings

of $2.80 per share versus analyst expectations of $2.76.

The company's pharmaceuticals sales jumped 6.8% from a year

ago to $15.56 billion, slightly outpacing analysts' estimates

of $15.42 billion.

J&J saw gains from its oncology products, including blood

cancer treatment Darzalex, which brought in third-quarter sales

of $3.67 billion, about in line with forecasts of $3.62 billion.

Its medical device sales also rose 6.8% to $8.43 billion,

mainly driven by electrophysiology products.