Johnson & Johnson Announces Orthopedic Business Spin-off and Highlights Digital Surgery Innovations at AAOS 2025

Mar 13, 2025 18:11 CST Updated 18:11

Johnson & Johnson

Medical Device R&D and Manufacturer

Image | Shutterstock

Source | CPhI China Medical Devices

Author | Qin Jiu

After the orthopedic business restructuring, Johnson & Johnson, as the global leader in the orthopedics field, has a future development plan that is worth paying attention to.

Johnson & Johnson Expands into Digital Orthopedics

On March 10 local time, Johnson & Johnson Medical Technologies announced that it would highlight its latest advancements in digital orthopedics at the 2025 Annual Meeting of the American Academy of Orthopaedic Surgeons (AAOS), to be held from March 10 to 14 in San Diego, California.

Johnson & Johnson Medical Technology stated that, based on last year's innovative achievements,Johnson & Johnson Medical Technologies is launching cutting-edge implants, advanced technologies, and data-driven solutions across all orthopedic specialties., includingJoint Reconstruction, Trauma, Extremities and SpineJohnson & Johnson Medical Technologies is committed to providing innovative and impactful solutions to meet the evolving needs of surgeons and patients.

More than 1.7 billion people worldwide suffer from musculoskeletal disorders, a number that exceeds the combined total of patients with cancer, heart disease, and lung disease. Therefore, there is an urgent need for effective and scalable orthopedic solutions.

Aldo Denti, Chairman of Johnson & Johnson Medical Technology's Orthopaedics Business Group, stated: "At the 2025 AAOS Annual Meeting, we are excited to showcase how our innovations are transforming the entire orthopaedic surgical process to meet this growing demand. By integratingSeamless integration of innovative implants, advanced surgical techniques, and data-driven enabling technologies"We are helping surgeons improve patient care while increasing the efficiency of hospitals and outpatient surgery centers."

Key innovations showcased by Johnson & Johnson Medical Technologies at AAOS 2025 include:VELYS™ Robotic-Assisted Solution (VELYS™), KINCISE™ 2 Surgical Automation System, VELYS™ Active Robotic-Assisted Solution, INHANCE™ INTACT™ Shoulder Arthroplasty, Advanced Case Management, Wound Closure and Healing in Orthopedic Surgeryetc.

In the past two years, Johnson & Johnson's orthopedic business has been undergoing new adjustments. In 2023, Johnson & Johnson launched a two-year orthopedic restructuring plan. This plan simplifies operations related to certain markets, product lines, and distribution network arrangements. The plan is currently proceeding in an orderly manner. Restructuring costs amounted to $167 million in 2024 to date and $319 million from 2023 to date, primarily involving costs associated with market and product exits.

According to Johnson & Johnson's 2024 financial report,Johnson & Johnson Orthopedics Revenue in 2024: $9.158 Billion，An increase of 2.4% year-on-year，Hip and knee sections increased by 5% and 6.1%, respectively.. Among themOrthopedics Business Revenue in Q4: $2.315 Billion, Up 2.1% Year-over-Year, driven by the continuous promotion of knee joint and trauma-related products.

Compared with the outstanding performance of the cardiovascular business, the orthopedics performance appears to be relatively average. The volume-based procurement has had a certain impact on both Johnson & Johnson's orthopedics and surgical businesses, and growing competitive pressure in some areas has also affected revenue growth.

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The Survival Path of the Orthopedic Giant in the Head:

Betting on Orthopedic Surgical Robots

As the volume-based procurement drives down prices across the four major fields of orthopedics—joint replacement, trauma, spine, and sports medicine—the traditional growth logic in the orthopedic sector has been rewritten. Leading domestic and international orthopedic companies are now forced to seek new opportunities with no turning back.

Orthopedic surgical robots have become the unified "target" for these leading companies seeking new growth.From 2016 to 2019, Smith & Nephew, Zimmer Biomet, Medtronic, Johnson & Johnson, and others rapidly developed in the orthopedic surgical robot field by acquiring robotics companies to obtain core technologies.

In the Top 10 global orthopedics ranking released last year by medical device industry media MassDevice and Medical Design & Outsourcing, Johnson & Johnson - DePuy Synthes maintained its leading position in the orthopedics field with a slight advantage over Stryker, but Stryker's pursuit has already reached the gates.

Twelve years ago,StrykerThe acquisition of MAKO Surgical Corporation, combined with the MAKO surgical robot that Stryker has deeply cultivated for many years, has made Stryker the orthopedic giant with the fastest revenue growth in the past decade. In China, according to the "White Paper on the Development of the Orthopedic Joint Surgical Robot Industry (2024 Edition)" released by the National Clinical Research Center for Orthopedics and Sports Rehabilitation,In 2023, Stryker's MAKO accounted for over 50% of the new installed equipment in China.

It is reported that the cumulative number of joint surgeries performed by Mako in China has grown continuously from 10,000 in 2023 to 20,000 in 2024, gaining widespread application in the field of joint replacement surgery.

Johnson & JohnsonAlthough it was relatively late in the field of surgical robotics, Johnson & Johnson quickly made decisions. In 2019, Johnson & Johnson paid $3.4 billion in cash, plus up to $2.35 billion in milestone payments.Acquisition of Surgical Robotics Company Auris HealthIn 2021, the VELYS robotic system from DePuy Synthes, a company acquired by Johnson & Johnson, received FDA approval for use in joint replacement surgeries.The system integrates artificial intelligence and machine vision technology., marking that the technology of joint surgery robots is rapidly developing towards a more efficient, intelligent, and personalized direction, paving the way for the future of precise minimally invasive medical care.

Among the key innovations announced by Johnson & Johnson this time,VELYS™ Robotic-Assisted Solution (VELYS™)More than 100,000 total knee replacement surgeries have been successfully performed across 31 markets globally. Johnson & Johnson Medical Technologies stated that this CT-free digital system is redefining total knee replacement surgery, helping surgeons improve precision, streamline workflows, and deliver more personalized care.

Zimmer BiometZimmer Biomet followed closely behind Stryker, having acquired the French surgical robotics company Medtech for $132 million as early as 2016, gaining ownership of the ROSA Brain and ROSA Spine robotic-assisted surgery platforms.

In February 2024, the ROSA surgical robot began to be used for robot-assisted shoulder arthroplasty and received approval from the U.S. FDA, becoming the world's first surgical robot for shoulder joints.

Frost & Sullivan estimates that the market size of surgical robots globally and in China will grow rapidly in the future. By 2030, the market size of surgical robots in China is expected to reach RMB 70.952 billion, with a compound annual growth rate of 36.9%.

In China, the huge potential and long-term investment value of orthopedic surgery robots have gained high favor in the capital market. From 2019 to 2021, the number of Series A financings for orthopedic surgery robots accounted for 42% of surgical robots, far surpassing other细分sectors in the surgical robot field.

At present, orthopedic surgical robot companies in China includeMicroPort Robot, Jiangu Medical, Yuanhua Intelligence, Huarui Bo, Tinavi, Lancet, Changmu ValleyAccording to calculations by the Eggshell Research Institute, in 2023, the total new installations of joint surgery robots in China will be around 45 units, with robot-assisted joint surgeries exceeding 15,000 cases, and the overall market size reaching approximately 320 million yuan (calculated at factory price).

"The White Paper on the Development of Orthopedic Joint Surgery Robot Industry (2024 Edition)" predicts that in the next five years, assuming no price reduction for surgical robots, the market for joint surgery robots is expected to maintain steady growth. By 2028, the overall market size may exceed 1 billion yuan (calculated at factory price).

As the dust settles on the centralized procurement, the orthopedic field remains full of suspense, with opportunities for surpassing potentially just around the corner.

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Editor: Qin Jiu (nrzx0321）