Major healthcare suppliers are reshaping their businesses as medical-device growth varies across portfolios, creating developments for hospital purchasing teams to track heading into 2027.
Abbott announced Oct. 21 that it intends to separate its global nutrition business into an independent publicly traded company by the end of 2027. The remaining company would focus on medical devices, biowearables, diagnostics, and established medicines. Nutrition will continue operating within Abbott during the separation process, which remains subject to regulatory and board approvals and other conditions.
The announcement accompanied third-quarter medical device sales of approximately $5.83 billion, up 6.9% but below analysts’ expectations of $5.88 billion. Weaker-than-expected cardiovascular device sales contributed to the miss. Abbott lowered its full-year comparable sales growth forecast to approximately 6%, from 6.5%–7.5%.
Johnson & Johnson (J&J) also reported slower-than-expected device growth. Third-quarter MedTech sales increased 2.5% to approximately $8.64 billion, marking a second consecutive quarterly miss against analysts’ estimates. Management cited international pressures, including pricing in China, European austerity measures, and the Middle East conflict.
J&J said its planned DePuy Synthes orthopedics separation remains on track for mid-2027. Management is leaning toward a spinoff while continuing to evaluate transaction options.
Other suppliers have already completed major separations. Medtronic announced Oct. 15 that it had completed the separation of MiniMed, its former diabetes business, allowing Medtronic to concentrate on cardiovascular, neuroscience, and surgical technologies. In February, BD completed the spinoff of its Biosciences & Diagnostic Solutions businesses and their combination with Waters, transferring a portfolio that includes microbiology, molecular diagnostics, and laboratory automation.
GE HealthCare is reviewing strategic options for Patient Care Solutions, which includes patient monitoring and anesthesia delivery systems. The unit’s second-quarter revenue declined approximately 13% to $675 million. Options include continued ownership or a potential sale; no separation has been announced.
Boston Scientific adds another example of operating pressure. The company reduced its annual profit outlook in July amid softer Watchman demand and electrophysiology competition. In September, it warned that an August cyberattack would prevent it from meeting previously issued quarterly and annual sales and profit guidance. Manufacturing, order fulfillment, and shipping were subsequently restored.
For hospital supply chain leaders, these developments raise questions about future investment, account support, and agreement administration. As transactions advance, purchasing teams can seek clarity on contract transitions, distribution arrangements, service responsibilities, and product availability. The announcements reflect different strategic and operating circumstances; they do not establish that recent sales misses are driving every separation.
