Story
Johnson & Johnson Shares Rise on Report of $20 Billion Orthopedics Unit Sale to Apollo
Summary
Shares of the healthcare giant climbed after a report indicated private equity firm Apollo Global Management is in talks to acquire its orthopedics division in a deal potentially valued at nearly $20 billion.
Shares of Johnson & Johnson (NYSE:JNJ) rose in premarket trading Monday following reports that private equity firm Apollo Global Management (NYSE:APO) is in discussions to acquire the company's orthopedics business.
The Potential Deal
According to a Bloomberg News report published Friday, which cited people familiar with the matter, the talks could value the orthopedics division at nearly $20 billion. The sources indicated that an agreement could potentially be finalized within the next several weeks.
This move would represent a significant divestment for Johnson & Johnson, allowing the healthcare conglomerate to streamline its operations. The orthopedics unit, which generated $9.3 billion in revenue in 2025, has been a major contributor to the company's top line but has also faced significant legal challenges.
Strategic Context
AdThe division has been the subject of thousands of lawsuits related to its hip replacement devices, creating a long-standing legal overhang for Johnson & Johnson. A sale to a private equity firm like Apollo would allow J&J to offload these liabilities and focus on its pharmaceutical and other medical device segments.
For investors, such a sale could be viewed as a positive step to unlock value by removing a source of legal and financial uncertainty. The reported valuation suggests strong interest in the underlying assets despite the associated risks.
Market Reaction
Following the news, Johnson & Johnson shares climbed 1.3% to $268.96 in premarket trading on Monday. The positive market reaction signals investor approval of the potential transaction and its strategic implications for the company's future focus and financial health.
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