Spin Off Synthes

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anonymous

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The next thing J&J should do is spin off Synthes. The alleged synergies have never been realized and never will be. Synthes is a drag on the sector as it adds no value whatsoever.
 






anonymous said:
The next thing J&J should do is spin off Synthes. The alleged synergies have never been realized and never will be. Synthes is a drag on the sector as it adds no value whatsoever.
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If that happens then there go the pensions and long-term healthcare benefits so many are handing around for... No doubt actuaries have run the numbers and J&J will save $B's by dumping the D-S business unit. The fact that the Synthes acquisition has been less than accretive is only incidental but certainly doesn't help.
 












Wrong to all. Acquisition cost deficits written off against other sector revenue makes the purchase of DS a super win for JNJ. Shareholder value on a global scale is improved and touch into every health care sector is critical. As things change in healthcare a presence in any and all sectors allow for future revenue streams a s tech changes. Robots? Easier to sell if you have Ortho reps and contracts in place as an example. Who knows what’s next and despite some of the leadership deficits JNJ can think ahead. They will never sell. The tax benefits and market share out strip anything else. You always be a middle player in the game. It shareholders will never accept you can late to the game or never participated in a major sector.
 






Wrong to all. Acquisition cost deficits written off against other sector revenue makes the purchase of DS a super win for JNJ. Shareholder value on a global scale is improved and touch into every health care sector is critical. As things change in healthcare a presence in any and all sectors allow for future revenue streams a s tech changes. Robots? Easier to sell if you have Ortho reps and contracts in place as an example. Who knows what’s next and despite some of the leadership deficits JNJ can think ahead. They will never sell. The tax benefits and market share out strip anything else. You might always be a middle player in the game. But shareholders will never accept you came late to the game or never participated in a major sector.
 












DPS tried to sell Mitek 4 years ago, no one was interested in buying a sports-med bit player that can’t ever compete with Arthrex, S&N, or Stryker.
Spine has been circling the drain for years, it’s only the ego of senior leaders that keeps throwing good money after bad chasing the losses.
Velys is a non starter, last to market and underwhelming, and everything that made Synthes Trauma a powerhouse has been stripped away via SIP harmonisation, the heavy hand of JnJ, supply chain mediocrity and the witch hunter generals who run Health Care Compliance.
DPS share will continue to decline at a rate of knots as Ortho focussed competitors deliver innovation and poach our remaining talent.
The one time powerhouse of JnJ medical devices (Ethicon, DePuy, Synthes) has been hollowed out by HR zealots with their agenda to promote cross sector moves and their complete lack of understanding that experience, competency, and customer relationships take time to develop and are the real drivers of share gain or loss.
All this aided and abetted by a compliance team that is a law unto itself making everyone too scared to do anything lest they end up as part of a career ending star chamber investigation.
 












So what the play? DS doesn't seem to be trying to compete, nothing really new, no real effort from them. Are they just going to keep rolling out the same stuff and just make money while they lose market share and respectability?
 






























J&J's most recent quarterly performance was really bad. With sales growth flat and profits declining, exiting businesses dragging the company down makes practical sense so don't be surprised if ortho/spine gets sold off or spun out in the not too distant future. The number crunchers can't sleep at night for worrying about the downward trend plus the long term obligations for pensions and healthcare benefits ticking like a bomb. Just look at what they did with talcum products.....
 






anonymous said:
So what the play? DS doesn't seem to be trying to compete, nothing really new, no real effort from them. Are they just going to keep rolling out the same stuff and just make money while they lose market share and respectability?
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The problem is all the leaders that are brought in from pharma or consumer are only there for a short period of time, 3 years or so. By the time they have an idea of how the business works they’re on their way to the next assignment or promotion. And they’re all afraid to really “do” anything out of fear of failure and interrupting their climb up the ladder.
 






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