New York, Feb 20, 2026, 11:25 EST — Regular session
- J&J stock slipped roughly 2% during late-morning hours.
- J&J is reportedly considering selling DePuy Synthes, a move that could be valued at over $20 billion.
- Investors are also digging into the company’s new U.S. cell-therapy manufacturing initiative, which tops $1 billion.
Johnson & Johnson shares slipped 2.1% to $241.75 Friday morning, following a Reuters report that the healthcare giant is gearing up to sell its DePuy Synthes orthopedics business in a deal that could top $20 billion. DePuy Synthes generated $9.3 billion in sales in 2025, with products ranging from hip and knee implants to surgical tools and other devices. (Reuters)
The report puts the timeline for J&J’s orthopedics business back in play. Investors had already penciled in a separation, but a straight sale—assuming the offer is good—would cut out the long spinoff process and get things moving faster.
This comes as major healthcare players face a tricky balance: keeping capital in check while also navigating industrial policy demands. For J&J, offloading a well-established device unit could be a straightforward move to sharpen their focus on faster-growing areas.
The company has started putting together financial paperwork and is gearing up for meetings with potential buyers within weeks, Bloomberg said. Private equity looks poised to show interest, and rival medical device makers might be eyeing the unit as well, according to the report. (Investing)
J&J hasn’t hid its intentions. The company’s CFO, Joe Wolk, put it plainly to investors: the next wave in orthopedics “was beyond our scope and probably in better hands somewhere else.” Zacks Investment Management’s Brian Mulberry pointed out just how big the step is, noting, “It’s roughly 10% of revenue generation.” (Reuters)
This week, the company announced plans to sink over $1 billion into a new cell therapy manufacturing site in Montgomery County, Pennsylvania—part of its ongoing effort to ramp up domestic production. According to Reuters, the decision trails recent U.S. tariffs targeting branded drugs and arrives as pharmaceutical firms look to secure carve-outs by investing in American facilities. (Reuters)
J&J said in a statement that the site is expected to generate over 4,000 construction jobs and create 500 permanent positions in biomanufacturing at full capacity. CEO Joaquin Duato described the company as “honored to continue advancing that legacy in Pennsylvania.” Governor Josh Shapiro, for his part, called Pennsylvania “a powerhouse for innovation and manufacturing in the life sciences.” (Jnj)
The manufacturing shift isn’t happening on its own. Industry publications have highlighted a wider trend of U.S.-centered expansions, as firms look to manage supply-chain and policy exposure—tariff concerns aren’t far from boardroom discussions. (Fierce Pharma)
Valuation is shaping up to be the big sticking point for orthopedics. Bloomberg Intelligence’s Matt Henriksson puts a $28 billion tag—debt included—on DePuy Synthes, according to GuruFocus. That said, discussions are still in the early stages and there’s no guarantee a deal will materialize, the same report points out. (GuruFocus)
Still, a lot could trip this up. If credit markets get shaky, buyout funding can dry up fast. Plus, any would-be buyer has to weigh the lingering litigation risk, even if most of it is cordoned off, tied to those old hip implants.
Dividend schedules might add some wrinkles for the tape in the near term. According to Johnson & Johnson’s investor release, the company is set for a $1.30 quarterly dividend, with Feb. 24 as the ex-dividend date and a payment slated for March 10. (Johnson & Johnson Investor Relations)
Next up, traders are eyeing a potential statement from J&J regarding DePuy Synthes. They’re also tracking leadership’s upcoming slots at investor events. J&J is on the calendar for TD Cowen’s health care conference March 3, with an 11:10 a.m. Eastern fireside chat, according to Business Wire. (Business Wire)
