Three new publicly traded device companies are expected to enter the market in the next one to two years, according to announcements from Zimmer Biomet, Johnson & Johnson and Colfax Corp.:
1. Johnson & Johnson plans to separate into two companies, one focusing on its medical devices and drugs businesses and the other specializing in consumer health products. Johnson & Johnson will continue focusing on pharmaceuticals and medical devices, including orthopedics. The new company will focus on consumer health products, including bandages, lotions and Tylenol. The spinoff is expected to be completed in 18 to 24 months.
2. Zimmer Biomet plans to spin off its spine and dental units to create two independent companies. Zimmer Biomet will be dedicated to orthopedics and "NewCo" will focus on spine and dental. The company decided to spin off the dental and spine lines because they include similar implant materials and scalability prospects. The transaction is expected to close in mid-2022.
3. Industrial equipment manufacturer Colfax plans to split its medical device business, DJO, and its industrial business, ESAB, into separate companies. DJO, acquired by Colfax for $3.2 billion in 2019, develops products for joint reconstruction, vascular health and pain management. The device company will be renamed before the split to reflect its strategic focus.