Johnson & Johnson is exploring a potential sale of its orthopedics unit, a business it had previously planned to spin off separately. The unit could fetch more than 20 billion dollars in a deal, with private equity firms already showing interest, according to people familiar with the matter. This marks a strategic pivot for the healthcare giant, which had been preparing for an independent orthopedics division.

J&J's orthopedics business produces artificial hips, knees, and other joint-replacement products that generated significant revenue for the company. The potential sale comes as J&J faces pressure to streamline operations and focus on core pharmaceutical and consumer health segments. The company has been restructuring various divisions to enhance shareholder value and operational efficiency.

The move would represent one of the largest healthcare divestitures in recent years if completed. Private equity firms are particularly interested in the unit's stable cash flows and established market position. J&J's decision to consider a sale rather than a spin-off suggests the company sees greater value in a complete exit from the orthopedics business at this time.